It’s that spooky time of year! Instead of coming to your door for Halloween goodies, here are tricks and treats to watch for as you learn crypto trading. Grab your candy bag and snack on these goodies as you discover the ins and outs of crypto investing.
The Tricks of Crypto Investing
The three biggest tricks savvy investors play for crypto success are education, security, and trading strategy.
Crypto Trick #1 – Education
It’s easy to fall into the fear of missing out (FOMO) sand trap by running after the shiniest coin you see. Instead, outsmart the well-trained consumer inside you and dig into why it might be a good idea to invest in one crypto or another and the best way to go about it.
Crypto enthusiasts believe there’s no time like the present to “get off zero.” That means you can’t earn if you don’t start. A great way to learn crypto trading is to sign up for newsletters, follow crypto sites on social media, and identify crypto podcasters and communities that discuss cryptocurrency as an investment asset rather than a way to get rich quickly. These groups of people can help you figure out which trading platforms and projects are right for you as you develop your own crypto trading and investment plans.
Crypto Trick #2 – Security
You don’t leave your cash or credit cards in the middle of a cornfield for the zombies to steal, so why should you do that with your digital assets? Sure, maybe you have a wallet on an exchange with a few hundred dollars, but what if that account grows or you decide to invest much more?
Get the hacker zombie target off your back by ensuring your assets are safe. Those pesky zombies don’t like the cold, so investors may prefer wallet services that use cold storage and multiple keys to protect their digital goodie bags from being stolen.*
Crypto Trick #3 – Trading Strategy
As the economy changes, analysts might compare the financial markets to a house full of costumed toddlers amped up on fists full of Halloween candy. That’s why it’s crucial to have a strategic effort to emerge from the evening victorious, having reached the houses with the king-sized candy bars ahead of the mobs of other trick-or-treaters.
Planning is essential when it comes to your positioning, or some teary-eyed miniature Spider-Man could ruin your hopes of finishing with the biggest stash. In other words, emotionally fueled poor decision-making happens when your cash is at stake.
Have a plan for entry and exit prices before entering the position. Consider the size of your position compared to your account; how much are you willing to lose, and how much should you put in on the first go? Many investors stick to percentages of their account size for stop losses (the amount you are willing to lose on a trade) and profit targets (the amount you want to make before you exit).
Another popular tactic is to dollar cost average into a position by adding small tranches when the price returns to a specific spot or at a particular time. There are many great strategies out there for trading; spend time educating yourself and finding one that works for your situation. Then, you will sleep peacefully with dreams of crypto riches and candy treats dancing in your head.
The Treats of Crypto Investing
Cryptocurrencies offer some perks that traditional investments don’t, like forks, airdrops, and an inviting community.
Treat #1 – Forks**
Crypto assets are forked when a group decides to branch off or switch the blockchain the asset is derived from. A classic example is the Bitcoin Cash fork. Bitcoin Cash was newly created from the Bitcoin blockchain in 2017 as a split that can be envisioned like a fork in the road or an off-ramp. Once the fork was completed, everyone that owned Bitcoin was given the same number of Bitcoin Cash tokens as a treat.
This happens because the newly created asset technically starts at the beginning of the original asset, meaning that when Bitcoin Cash was created, the asset pool was the same size as Bitcoin’s asset pool at the time of its creation.
Treat #2 – Airdrops**
Cryptocurrency projects conduct these airdrop treats in different ways, but the premise is that you, the holder of the base cryptocurrency, receive free cryptocurrency from the developers of the base project. For example, when the developers of Stellar Lumens created new blockchains and cryptocurrencies, rather than finding new buyers, they gave a portion of the new cryptocurrencies to current holders of Stellar Lumens as an airdrop.
In another example, Metasource Games saved WAX from in-game transactions processed and airdropped a large percentage back to their players as a reward for participating in the game. Most developer groups interested in giving back to their users advertise this in some way; searching for the name of your token and the word “airdrop” should give you an idea if these treats are available.
Treat #3 – Community
Consensus drives much of the crypto world, which has bred collaboration and community. There are many free and friendly crypto groups for people to participate in that can be found across the web.
What makes the crypto community such a treat is the openness to share helpful information. The crypto community welcomes all comers, from newbies to long-time traders.
Select crypto retirement investing companies even have dedicated support staff on call to help customers get started and navigate their self-directed crypto retirement accounts.
Investing in Crypto
As trick-or-treaters howl at the full moon in their DOGE masks and munch on candy crypto coins, it’s an exciting time to start investing in the real deal for your retirement.
Crypto IRA platforms offer a gamut of retirement accounts, protected with cold storage and multiple keys* (to lock out those hacker zombies!). You can even roll over an existing retirement account into a crypto retirement account.
When you trade and invest in a cornucopia of cryptocurrencies, you can take advantage of these fun tricks and tasty treats.
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