The way to get into the cryptocurrency space right now is to go obtain crypto coins for yourself personally, then hold them for an extended period of time of your choosing. Simple enough. The nuances arise from how you go about this, the devil is in the details as they say. The questions to ask are how best to obtain cryptocoins, when to buy when to sell, which cryptocurrencies should be obtained bought and sold, and how long to hold them for.
Best Practices with Cryptocurrency
You want to obtain crypto coins directly. The best method to do so is either in person, peer 2 peer exchange or through a major bitcoin exchange. There is also the option to mine for alt coins then exchange them into the crypto coin of your choice, this method is for more advanced crypto users.
For selection of crypto coins, begin at the path more traveled. Try Bitcoin first before branching out into other cryptocurrencies. There are a few other prominent crypto coins worth noticing such as Etherum, DASH, Monero, and the newly created Bitcoin Cash, check the market caps for more information. There should be some degree of safety in numbers so stick to the largest cryptocurrencies at first. We’d advise starting with Bitcoin until you’re more advanced.
Best way to store your crypto coins long term in an offline wallet they come in both hardware and paper wallet form. We’d advise against long term storage of coins on a third party site such as an exchange. They are good to acquire and trade crypto-coins however long term storage on a third party site is never guaranteed.
Physical Wallets Hardware and Paper Wallets
The best method of storing crypto coins are holding them through offline wallets under your control. This is the safest method for long term cryptocurrency holding. Holding physical wallets is a level above storing crypto on an exchange wallet. The safety and security gained from an offline hardware or software wallet is tremendous. Doing so will give you better chances of being able to hold your crypto coins for long periods of time with a lower chance of loss. By going the extra mile your crypto coins will be less likely to be lost due to an exchange collapsing or a hack, provided you setup your wallets correctly.
Hold Length Buying and Selling Practices
There are two schools of thought for traditional securities purchase, dollar cost averaging and lump sum investing. Dollar cost is about purchasing fixed amounts at different periods of time, while lump sum investing is the practice of going all in on a purchase at once. Arguments can be made for either side depending on what you’re investing in and depth of knowledge. I feel erring on the side of caution dollar cost averaging is preferable. Purchasing fixed amounts of crypto coins as one sees fit over the course of time has been our strategy. By buying Bitcoin at prices levels in the hundreds and low thousands, we’ve been able to mitigate some risk by getting an overall average price substantially less to where Bitcoin currently trades.
As far as when to buy and when to sell count on the fact that nobody knows for certain what the future holds, we’re all only able to get a small glimpse by making informed predictions on what the future may hold. The best time to get in on the bitcoin crypto coin craze was years go, the second best time is now. Once you see some respectable profits don’t be shy to capture some gains by selling, there is always the option of buying back in and repurchasing in the future.
Cryptocurrency Related Services
With each day the interest in Bitcoin / crypto-coin grows, with it are the amount of services that facilitate cryptocurrency. There are a variety of services including, exchanges, peer 2 peer marketplaces, gaming sites, wallets, lending sites, and information sites all catering to the new growing cryptocurrency space. The best course of action we recommend is research the most trusted largest site for each of these categories and utilize them in your cryptocurrency endeavors. Find an exchange or few you trust to purchase your Bitcoins. Hold them over a long term period of months to years on an offline physical wallet of your choice. Use a select portion of those crypto coins to conduct actions such as lending, trading, or attempting arbitrage.