Bitcoin Beginner? Five things you need to keep in mind

Patent: Bitcoin ATM operators to pay $18 million

Bitcoin, a „very attractive value store“ – Stanley Druckenmiller

For beginners crypto currencies like Bitcoin hold numerous pitfalls ready. Like beginners around the Stolperfallen around navigates and which one should avoid as Krypto a risers absolutely.

1 Bitcoin is not a typical investment

To have something Skin the Game, i.e. to participate in the BTC course, is helpful to develop a certain curiosity about crypto currencies. Because with the own participation the interest in crypto-currencies comes apparently by itself. Questions such as „How does our monetary system work“, „How does the ECB work“ or „What makes good money“ are rarely asked in everyday life (at least in this part of the world). Bitcoin, however, promotes a healthy interest in precisely these questions. Our tip: Beginners will find beginner courses on Bitcoin in our Academy.

2. give Bitcoin custody to third parties

The bon mot Not your keys, not your coins exists for a good reason. Because holding Bitcoin means demanding monetary sovereignty. But anyone who deposits crypto-credits on Bitcoin exchanges leaves the controls over private keys, i.e. the keys to digital assets, to third parties. Similar to banks, Exchanges can also refuse or delay the payment of BTC. Various devastating Bitcoin exchange hacks have already illustrated the dangers of centralized Bitcoin custody.

Whoever wants to play it safe should therefore always keep his Bitcoin on his own wallet, ideally in cold storage. An overview of the different types of wallets can be found here.

3. let volatility drive you into the foxhole

The Bitcoin market is highly volatile. This is mainly due to the fact that BTC is a completely new type of asset. Nobody knows how high the price can still rise, let alone what will become of the number one crypto currency when it grows up. It is these uncertainties about possible risks of an investment that make the price unpredictable. It is therefore recommended not to squint too often at the price and to make purchase or sales decisions based on the short-term price development. Market observers are therefore increasingly advising a so-called buy-and-hold strategy; this is also good for the nerves.

4 FOMO: Chasing the „next big thing

Coingecko, one of the largest course sides for crypto currencies and tokens, lists these days over 6.000 different Coins. Among them are delicacies like the Meme Coin Dogecoin (DOGE) and SpankChain (SPANK), a token that was created exclusively for payment transactions in the erotic industry. Over 800 projects have a market capitalization of over one million US dollars. The appeal of jumping on one of the fast growing coins and doing the „business of a lifetime“ is seductive. Price gains of 50 percent and more are not uncommon in the wild world of crypto currencies. The fact that such moon profits usually do not produce lasting growth may not remain unmentioned at this point.

In the long run, BTC has always been the „safest bet“ in an already risky and volatile market environment. So: keep calm and hodel Bitcoin.
5th FUD: Fear, uncertainty and doubt hand over the rudder

Bitcoin has been running like clockwork for ten years. Apart from two brief interruptions of the client in 2010 and 2013, the protocol has been working smoothly since its genesis. The website Bitcoinuptime.com puts the uptime of the No. 1 crypto currency at 99.9 percent.

Nevertheless, alleged risks and bad news such as efforts to ban Bitcoin are still spreading like wildfire. To ensure that Fear, Uncertainty, Doubt do not have any influence on your trading decisions in the future, keep calm and read the crypto compass.