How To Store Cryptocurrency
Once you have purchased cryptocurrency, you need to store it safely to protect it from hacks or theft. Usually, cryptocurrency is stored in crypto wallets, which are physical devices or online software used to store the private keys to your cryptocurrencies securely. Some exchanges provide wallet services, making it easy for you to store directly through the platform. However, not all exchanges or brokers automatically provide wallet services for you.
There are different wallet providers to choose from. The terms hot wallet and cold wallet are used:
- Hot wallet storage: “hot wallets” refer to crypto storage that uses online software to protect the private keys to your assets.
- Cold wallet storage: Unlike hot wallets, cold wallets rely on offline electronic devices to securely store your private keys.
Typically, cold wallets tend to charge fees, while hot wallets don’t.
Using Your Cell Phone Provider And Cell Phone Number Hackers Can Conduct Sim Theft
This is where hackers steal your phones identity by calling your cell phone provider and requesting a new SIM card.
If they steal your cell phones SIM card, they can easily hack into your investment accounts and drain your funds.
So the next thing you need to do to prevent this from happening is set up a passphrase with your cell phone provider that must be disclosed before activating a new SIM card.
So get on the phone with T-mobile, Verizon, or whoever your cell phone provider is and set up a strong passphrase that must be disclosed before activating a new SIM card on your account.
Another bonus tip:
Malwarebytes has security software for mobile devices you can install to further secure your cell phone.
Who This Course Is For:
- Anyone who wants to learn how to invest in Cryptocurrency and doesn’t know where to start
- Anyone looking for strategies to identify the hottest Cryptocurrencies available
- Anyone who wants to learn the day trading and investment strategies that keep money coming in daily while certain coins take time to mature
- Anyone who wants the mentality to survive in the Cryptocurrency game, whether it is overcoming a fall in a coin to an entire market crash!
- Anyone who wants to have access to all the hottest Cryptocurrencies that are available right now!
- Anyone who does not understand Blockchain and wants to learn how it works, simply!
- 4.6 Instructor Rating
- 31 Courses
Hey guys! My name is Suppoman, your Superhero Professor on Udemy.
I live in the UK with my 15 year old son Harry. I started Cryptocurrency investing just 4 years ago & turned $1000 into $13million by investing in the high potential projects early.
I will teach you in a simple and entertaining way to keep you engaged and learning the best of what Ive learnt. To me, learning should be easy to comprehend no matter what skill level you are at, and you should have fun doing it.
What ever I teach, I have already mastered, and I pass my knowledge on to you. You will be taken through walkthrough tutorials that are super easy to copy and implement. You won’t just see slides and theory and be left wondering how to do it.
My subject areas are:
Online Advertising – Facebook Ads, Google AdWords and YouTube Advertising.
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Why You Need A Trading Plan
Heres why a crypto trading strategy is crucial to your success:
- Its a map. Having and maintaining a trading strategy is akin to having a map. It guides your trades, helping you know when to trade, how, and why to perform a certain trade.
- Keeps emotions at bay. One of the biggest challenges facing traders is the interference of feelings and emotions. These become an impediment when an assets price starts trending in the opposite direction to a bet. In cryptocurrency, this happens so frequently that it easily leads to an emotional roller coaster. Successful traders have learned to keep trades free of emotions by sticking to their trading plans.
- Risk management. Having a trading plan effectively forces you to do the research necessary to create one, and part of that research is the risk factor to consider for every trade. Risk identification is the first step toward risk management.
Here are some of the popular strategies used by highly successful traders and investors:
Hot Wallets Vs Cold Wallets
Lets understand the basic distinction between the two with a real-world example. Hot storage is like the wallets that you carry around in your pocket. The Cold storage is basically somewhat akin to your savings bank account. Keep this distinction in mind as we move forward. Basically, if you want to use your digital currency frequently then you must use hot storage. On the other hand, if you want to store your money for a long time then you must use cold storage.
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You Need To Store All Your Information On Paper With Paper Backups
This is why I recommend buying at least two paper notebooks.
Three is much better.
Really, the more the merrier.
You should store the notebooks in separate locations to be safe because you never know if your house or office may be affected by a fire, hurricane, flooding, or any other destructive event that could compromise your paper notebook.
Consider storing one notebook in a fire-proof safe at your house and storing the other one in a safety deposit box at a bank or similar.
Similarities Between The Crypto And Stock Market
- Stock trading and investing tools are more or less the same. This is especially true for technical traders using tools such as charts to analyze the market. You can use the same tools to perform TA ” rel=”nofollow”> Technical Analysis) for trades on either market.
- Assets denominated using fiat currencies. The crypto market may be innovative and revolutionary with the assets designed to append the current financial system. However, the denominations in the marketplace are still valued compared to fiat currencies similar to the stock market.
- Trading and investing strategies are similar. In the stock market, traders can choose to day trade, swing, or position trade. They can also opt to buy and hold their assets for the long term. Similarly, traders and investors in the crypto market can do the same things.
- Similar market products. The stock market has been around for generations, leading to innovative products such as derivatives and techniques such as using leverage to inflate gains Those same products and techniques have been ported over to the new age cryptocurrency market. You can now trade Bitcoin futures, options, and leveraged tokens. You can use leverage on most of your trades on most leading cryptocurrency exchanges, such as Binance, Bitfinex, or BitMEX. The full list of digital asset exchanges with a leverage trading here.
Please note: DO NOT trade cryptocurrencies with leverage unless you are fully aware of what you are doing and what risks you face.
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Fa Vs Ta Which Is Better
It entirely depends on the trader profile. Do you want to be the kind of trader that prefers to get in and out of trading positions multiple times a day ? Then crypto technical analysis will be your best friend. Instead, do you prefer to research and make informed bets every time ? Then a mix of both is the way to go.
Note: As a trader, you cant have enough tools in your arsenal. Applying both FA and TA will give you the best chance of identifying the best trading and investing opportunities in the crypto market. This is because the two techniques complement each other in so many ways.
For instance, you may use FA to determine that an asset is worth investing in. What you may not uncover with FA, however, is the right time to invest. For this, you will have to rely on technical analysis. Conversely, if you are using TA to work out future price movements for a given asset, you can use FA to confirm whether or not the price trend you are witnessing is poised to continue.
Therefore, there are advantages to using either technique over the other at various moments in your research, but to have a more complete picture, use both.
Chapter 10instructions On Managing Crypto
Congratulations, you are now prepared to start buying cryptocurrency safely and securely.
In my other guides, I will show you how to set up accounts with exchanges and finally how to buy, sell, transfer, and store cryptocurrency.
I recommend buying cryptocurrency from Coinbase, which is one of the safest and easiest exchanges to use for beginners.
Another exchange that lists most available coins is called Binance.
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Do I Need To Do Crypto Taxes
Disclaimer: We are no tax bureau nor tax consultants. If you have issues with taxes, and if large sums are at stake, you better ask your local tax consultant.
Right now there are only a few tax consultants who know how to deal with cryptocurrencies. But it can be safely assumed that the number is growing quickly and that cryptocurrencies will soon be a standard issue for tax experts like securities, shares, ETFs and real estates are.
All we can provide here is an overview of the typical issues with cryptocurrencies and taxes.
What Are The Types Of Cryptocurrency
Before cryptocurrency investing, it is essential to know the types. There are many different types of cryptocurrency systems that you can invest in. Bitcoin is arguably the grandfather of all crypto. It has been around for over 10 years and its the largest cryptocurrency system in the world, with a market capitalization of about $128 billion. Here are some of the other cryptocurrency you can buy:
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Litecoin: Created by a former Google employee, Litecoin is very similar to Bitcoin, but has shorter transaction times and lower fees.
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Ethereum: Its a cryptocurrency, but the main focus is on purchasing applications without having to pay a middleman .
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Ripple: This is a cryptocurrency that doesnt use blockchain technology. Its mostly used by corporations to move large sums of money.
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Cardano: This is a blockchain-based cryptocurrency thats used primarily to store private data.
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Best Decentralized Exchange: Bisq
- No. Currencies Available for Trade: 45
- Transaction Fees: 0.05% to 0.70%
- Wallet Included: Yes
We picked Bisq because it is a decentralized, open-source exchange with no Know Your Customer requirements.
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More than 15 different payment options
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Mobile app for both Android and iOS
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Transaction speed can be slow
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Trading volumes can be low
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Not designed for active trading
Bisq is a downloadable software and peer-to-peer decentralized Bitcoin and cryptocurrency exchange, so it has no central point of failure and cannot be taken down, much like Bitcoin itself. Bisq is non-custodial, meaning no one other than the user touches or controls the users funds.
It differs from centralized exchanges, like Coinbase, as Coinbase controls the users funds in a custodial account to which the user does not have the private keys. In that scenario, Coinbase holds the right to freeze your account if it deems your account activity suspicious, whether or not the activity is actually illegal in your location.
Bisq is instantly accessible to anyone with a computer or smartphone as there is no registration process or KYC rule. This makes it ideal for those looking for privacy, dissidents living within an oppressive regime, or anyone with no government-issued identification.
Top Cryptocurrencies To Consider As A Beginner Investor
As a beginning cryptocurrency investor, you shouldn’t try to find a diamond in the rough. You should get your feet wet with more established cryptocurrencies that have built-out networks to support them. That will allow you to get more familiar with the mechanics of cryptocurrency investing, as well as how it fits into your portfolio.
Bitcoin is an easy place to start. Every cryptocurrency exchange will support trading in Bitcoin. It’s well-established, and you know what you’re getting with Bitcoin. It’s nothing fancy, just digital cash, but it has a first-mover advantage that had made it widely adopted. That gives Bitcoin a competitive advantage when it comes to being actually usable as a medium of exchange.
Ether is also a good choice for beginner investors. Ethereum’s technology is behind most DeFi projects, which use the Ethereum blockchain to execute smart contracts and provide financial services without a central authority. Anytime a user wants to write a smart contract to the blockchain, they’ll have to pay Ether to do so. Increased adoption of DeFi applications will lead to greater demand for Ether.
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What To Know Before Investing In Cryptocurrency
Investing in cryptocurrency is considered to be risky. The prices of cryptocurrencies, even the most established cryptocurrencies, are much more volatile than the prices of other assets like stocks. The prices of cryptocurrencies in the future could also be affected by regulatory changes, with the possibility that cryptocurrency becomes illegal and therefore worthless.
Many investors are nonetheless attracted to the potential upside of investing in crypto. If you decide to invest in cryptocurrency, it’s important to carefully research any digital coin before buying it. Pay attention to transaction fees when making crypto purchases, as these fees can vary widely among currencies.
The cryptocurrency space is evolving rapidly, so it’s also important to pay attention to new developments that may affect your crypto holdings. Cryptocurrency investors need to understand the tax consequences of using crypto, especially if they purchase something or sell their crypto holdings.
Given the riskiness of cryptocurrency as an asset class, it’s especially important not to invest in crypto more money than you can afford to lose.
Know The Risks Of Investing In Crypto
Investing always involves taking a risk, and sometimes a big risk can lead to a big return. But it could also mean losing most of your money.
Cryptocurrency investing can be particularly risky as it involves investing in a brand-new type of asset that tends to go through huge fluctuations in value. For example, the cost for a single Bitcoin was as low as $26,826 and as high as $68,991 from February 2021 to February 2022.
There are also additional risks when investing in cryptocurrenciessuch as the many cryptocurrency-related scams. These can be especially dangerous when you’re not familiar with the cryptocurrency world and feel pressure to act quickly because you’re worried about missing out on the next big opportunity. Additionally, people have been able to develop hacks to steal peoples’ crypto.
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Keep An Eye On Crypto Taxes
As crypto continues to go mainstream, taxes are coming in thick and fast for crypto transactions. In the U.S., the IRS regards crypto as a digital asset that can be taxed just like bonds and stocks
Although you dont get taxed when you buy or hold crypto, you are only taxed when you sell them and record gains. Activities like selling one crypto for another, mining, earning staking rewards, or purchasing items with crypto are considered taxable in the U.S, and citizens are expected to file for taxes.
To discover how much tax you may be eligible to pay, please contact your countrys tax office or visit IRS.gov if you are in the U.S.
This Process Is Basically Helping You Set Up Your Own Personal Bank To Manage And Protect Your Own Personal Funds
One last quick note, its extremely important to pay attention to the URLs of the websites you are accessing to ensure you are not visiting a fake site that is impersonating the real one.
To make it safer and easier for you, Ive listed all of the links youll need to access in this guide for you to click on.
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Have A Strategy For Crypto Trading
It isnt easy to separate genuine cryptocurrency recommendations from the scams there are lots of sharks out there waiting to take your money.
In 2020, according to the UK fraud-alert service Action Fraud, reports of crypto investment scams surged by 57% year on year to 5,581, with investors losing a total of £113m.
So when youre confronted with a lot of information about a cryptocurrency, take a step back from the hype.
Try to look critically at the project. How many users does it have? What problem does it solve? Does it have any links with industry? Avoid coins that promise the Earth but havent delivered anything tangible.
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Diversify Your Crypto Portfolio
It doesnt pay to have too much invested in one single cryptocurrency.
As with stocks and shares, spread your money out among different digital currencies.
This means you dont risk being over-exposed should one of them plummet in value especially as the market prices of these investments are highly volatile.
There are thousands to choose from, so do your research.
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How Do You Buy Cryptocurrency
To purchase cryptocurrency, most centralized exchanges allow you to deposit funds via your bank account, credit card, or debit card. You can then exchange those funds for the cryptocurrency of your choosing. While some offer a simple Buy Now type transaction that only offers a market order, some exchanges will allow you to set more advanced order types, including limit and stop orders.
Once you purchase that cryptocurrency, the exchange typically takes custody of it, and most store cryptocurrency in offline cold storage for safekeeping. If you want to take custody of the cryptocurrency yourself, most exchanges allow you to transfer it to your hot or cold wallet, along with the private keys for that cryptocurrency.
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