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10 Cryptocurrency Beginner Techniques

Cryptocurrency is lately considerably again attention. Among other courses by courses. We get a lot of questions about how best to start or “boarding” in Bitcoin. But beware: There is not any guarantee that the cryptocurrency will continue. Bitcoin has in recent years demonstrated that it offers unprecedented opportunities but there are certain risks involved.

It is therefore wise to keep a few basic rules when you go to work with Cryptocurrency.

1. Cryptocurrency is an experiment: Educate yourself

Cryptocurrency is still in its infancy, make yourself aware of all the opportunities and risks. Inform yourself and choose a good Bitcoin wallet (electronic wallet) to save your bitcoins on.

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2. Remember, Cryptocurrency is NOT anonymous

Contrary to what you may have heard cryptocurrency is not anonymous. crypto addresses are not linked to a person but the cryptocurrency transactions, however, are completely transparent and traceable. You can therefore see better Bitcoin as a pseudo-anonymous. Apart from the fact that you hear anything at all to do anything illegal, I certainly would not use crypto.

3. The cryptocurrency can fluctuate violently, keep this in mind.

Grab a peek at the exchange page, the select period under “all” and then further explanation. This is necessary for beginners especially.

4. Invest money that you can not miss

We already know this rule of the stock market, but the spirit remains the same. Do not assume that Bitcoin will guarantee you rich and you realize that you can lose your invested funds.

5. Choose a good cryptocurrency wallet

Safely storing your Bitcoins is something you have to think about carefully.

6. Use varied and complex passwords.

Many of us choose it out of the sheer convenience of using the same (often simple) password for multiple sites. Hackers, however, easy passwords unfortunately easily crack or guess and a password can be stolen or drained, etc. So, always open your accounts by the culprit of all this misery. So why use a complex and unique password for each account? If necessary, use password management software to safely store all your passwords.

7. Make back-ups!

Make regular backups of your bitcoins. Multibit and Bitcoin core both have available the option to create an encrypted backup of your wallet. Do this on a regular basis. Again, you will not be the first (or last) who is behind on a day when all his bitcoins are away.

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8. Beware of online Cryptocurrency wallets

Online cryptocurrency wallets are easy to use, but they also pose a risk. The online service can be hacked or go bankrupt and then the chances are very high that you will never again see your bitcoins. Preferably use the online service as a small money wallet and keep the bulk of your bitcoins on a hardware or wallet secure computer Bitcoin core or Multibit software. This of course combined with a good password and backups.

9. Check your address

If you want to send or receive crypto, check always the bitcoin address. Bitcoin payments are irreversible because bitcoins sent to or received at the wrong address can be considered lost. Some software or online services will also have the ability to determine the amount of the transaction itself, watch there as well along on!

10. Consider the tax

As cryptocurrency is also accepted more government agencies interfere. You must now specify, for example, all your digital tokens of money in the annual tax return and there will probably not stop there. So keep proper books and records and go but that the tax authorities or other governmental authorities sooner or later is being heard.