Five tips for entering the cryptocurrency bull market
With the cryptocurrency market being on the verge of a bull market, it is good to know what to do when that happens.
1. Withdraw from the crypto exchange after you’ve finished trading!
Exchanges are notoriously insecure, and with all the security breaches, mismanaging of the user funds, exit scams, or a surprise AML/KYC to seize the investors’ funds, you’re always at risk with your holdings being held by the exchange. There are many valid reasons why “Not your keys, not your Bitcoin,” became a mantra among traders. Many traders lost substantial amounts of money to hacks, unethical exchanges, and exit scams.
When it comes to surprise AML/KYC seizures, it could be possible to recover funds by doxxing yourself, which is not ideal. However, some platforms simply make the demands for personal information that are so appalling that you may never get your cryptos back.
2. Stop talking about your portfolio!
Operational security is the king in the land of cryptocurrencies. During the last bull market, some people that were talking about their outrageous gains got kidnapped, become victims of home invaders trying to find their crypto-keys and devices. All this because they wanted to brag about their portfolio gains on social media. Advertising your gains on social media (or anywhere for that matter) is like painting a red dot on your forehead.
3. Keep your holdings on a hardware wallet!
Another security consideration should be to store your holdings offline on a hardware wallet. Preferably, it would help if you kept the hardware wallet and recovery seed in different and secure locations. Hacking, as well as ransomware, is, sadly, an epidemic online. Therefore, keeping your coins off your laptop or mobile phone is an easy way to sidestep the risk of losing your holdings this way.
4. Don’t use trading signal services!
Countless trading coaches popped up on the internet during the last bull run. They offered courses, trading signals, and paid trading signal groups without any testimonials of what they did prior to being coaches. While it is obvious that these trading coaches are scam artists, many people fell for their scam and lost quite a lot of money.
There are many ways to learn how to trade safely. Taking free courses or reading free ebooks about trading, as well as practicing on a demo account, all fall into this category.
5. Perform in-depth research before investing!
The cryptocurrency industry is young and full of scammers, as most of the retail investors are young and have never tried themselves in the traditional markets. This attracts the most unscrupulous scammers that are trying to take the funds away from the investors in any way possible. During the bull market and the ICO craze of 2017, many scams and terrible investment opportunities started popping up.
The scammers in the crypto field basically forced the world’s regulatory agencies to step in and put an end to the “scammer’s free for all.” As a fun fact, there was even an ICO that used a picture of the famous actor Ryan Gosling as their supposed “graphic designer.”
Even if the projects are not scams, it is important to do the research in order to gauge whether it is worth your money or not. Do your due diligence and always make sure you are fully aware of what you’re actually investing in.