In this article I want to give five tips for people who are new in the crypto space. These tips are based on my personal experience and are maybe biased but I will hope, they help you to start out in the crypto scene. Don´t expect a deep technical explanation, its just a easy to go list.
Get a decent wallet
There a zillions of different wallets available. Most important difference is the handling of your private keys. If you use a custodial wallet, you don’t have access to your private keys and the wallet provider could easily freeze your funds. I would highly recommend a non-custodial wallet without server solution. If you plan to invest more than 100$ in crypto you should think about to get a hardware wallet, it is the safest way to store your private key. A good non custodial wallet is electrum or the wasabi wallet and for a hardware wallet you can take look at ledger or trezor. At the end of the day are all these wallets paper-wallets because you have to write down your mnemonic seed phrase, and when you lost your seed, you lost your coins. If you don’t know what a seed is, take a look at this fine article.
Use one reliable Exchange
When you start out in crypto, you first want to turn fiat into btc (or another coin) but which service do you use? This is maybe a controversial advice but I will recommend coinbase. Why? Because it is the biggest fiat onramp service and has a very user-friendly interface and user experience. Kraken is also a good choice but unfortunately, they don’t offer buy crypto with a credit card. You can make deposit from your bank account to kraken but this could take a few days, in a high volatile market like crypto, I want to make a instant payment. Some people just send their fiat to kraken and wait with their buy order till they see opportunity, I don’t advice to do that because you should never leave an asset on an exchange. Just do your trade and withdraw your funds on your wallet. You should also have in mind, that nearly all exchanges with fiat conversion do a KYC procedure, you have to transmit very sensible data to a 3rd party. So when you just try every exchange, you spread your personal data to several exchanges. So choose your exchange wisely.
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Avoid pump and dump groups and cloudminig
When you new in crypto and joined some telegram groups or the bitcointalk forum, soon or later your will stumble across pump and dump groups or cloudmining service providers. These are mostly scams, I suggest to simply avoid these groups. When someone messages you telegram regarding a P´n´D group or a cloundmining service, just block them. They don’t deserve your time. There is no free lunch.
This is also a controversial point but don’t start trading, its basically a null sum game and bad for your health. Sure, you have to know how a exchange work and maybe should know the different order types, so have to do a few trades to get used to it. But especially as a noob, you compete with pro traders and companies, who will win against you. I personally just holding some btc and eth and few altcoins (which are mostly 95% down J ). I am also not a big fan leverage trading like bitmex or deribit, you can easily bring your depot to zero with a 100x lever. Trading itself is a risky business but trading with leverage is dangerous.
Keep a proper documentation
So you made a fortune in crypto and forgot to document your trades? Very bad, because your local tax authority will have few questions. So right from beginning start with a good documentation. Made a folder on your hard disk and simply but every buy/sell conformation in it, make screenshots from every trade, download everything (trading history, withdraws, deposits). There are a lot of good tools outside to help you out. I personally just use excel but you should take a look at cointracking or cryptotax.
Article was originally published on publish0x.com