Lifehacks for Crypto Beginners
- January 15, 2018
- Posted by: crypton
- Category: Cryptocurrency
In this article, we will share a number of lifehacks for complete beginners in crypto business.
This information you can’t find on the Web, forums, books or Google. It can be gained if you have invested several months and stuffed cones, through trial and error which allowed you to learn certain things are not obvious to the average person who starts his way in crypto-currency.
Our lifehacks on working with crypto-currencies:
Find low comission
When you buy crypto-currencies for the first time you go into the cryptocurrency of your fiat money and you usually look at the most classic way of exchange.
For example, cash dollars to bitcoin – this is the most popular direction of exchange, with a maximum demand and therefore exchange services put maximum commissions on it. If you want to save on these commissions look at the other pairs – Litecoin or Ethereum. Very often the commission will be much lower!
Moreover, if you buy cryptocurrency with your electronic money the commission will be very high.
For example, when you buy Bitcoin for Webmoney, very few exchange services will offer you such an exchange, and fees will be very high. In this case, if you exchange WMZ to another currency, and then from that currency, you will buy Bitcoin. This exchange may be at times more profitable.
For example, once we made a chain of exchanges as a whole received unprecedented low fees. When everywhere in all exchange services there was a peak of demand the exchange of cash to Bitcoin could cost 5-6-7 percent of commission for cash we bought in Webmoney. Webmoney allowed us not only to get them one-to-one, exchange services paid extra to us to conduct this exchange, so much demand was just in the opposite direction. So we won already on conversion to Webmoney then in Webmoney converted to Epese (such a system of electronic money) and already Epese exchanged for Capitalist (this is another system) and finally deposited Capitalist on Livecoin and Exmo exchanges.
Thus, the chain of exchange from cash to Bitcoin eventually cost us about 1 percent. This was an unprecedented low commission at that time and even today.
Earn on Falling
The fall in the rate of the cryptocurrency does not necessarily mean a loss, moreover, you can even make money on this! How does this happen?
Many Cryptocurrency Exchanges have tools for the so-called marginal trade. Margin trading allows you to do transactions without touching your funds. Your funds are used in essence as a pledge that you will return the Cryptocurrency Exchange loan capital that you temporarily borrow from it for some transaction.
Imagine that you have 10 Bitcoins, then the growth rate of Bitcoin on 1 dollar brings you one additional dollar on every Bitcoin so you earn $ 10 each time the rate grows by $ 1.
Imagine that you can bet on a slide and earn one dollar each time a Bitcoin loses in value, that same one dollar. Then you find yourself in an interesting situation: on one hand, you have 10 Bitcoins and each time you earn with their growth, on the other hand, you have a bet on a decrease where you earn each time when the rate goes down. Then you fall into a certain balance, wherever the rate would move, if the rate moves up, say $ 10, you earn $ 10 on the cost of your Bitcoins and you lose $ 10 on your downgrade bet. If the rate moves down you lose 10 dollars in the price of your Bitcoins, but you will earn 10 dollars on your rate on a decline.
So wherever the rate would move you will not lose a penny. Even if the Bitcoin fails to $ 1, you do not lose a penny, all the loss that you get for your Bitcoins will be compensated to you in the form of income for your game on a drop.
This is your insurance against falling but also protection against growth at any time of instability in the market, you state the so-called bidirectional transactions and thus fix your current financial position.
Mine the Most Profitable
If you are a miner, you are most likely to drop the most popular currency that allows you to mine on your equipment.
It is called Coin Hoping – the switching of your mining capacities to the coin most profitable to mine at that moment. The fact is due to unevenness of the market very often there are peaks in which it becomes surprisingly unexpectedly profitable to move to another coin mining.
For example, a few days ago we were in a situation when mining Dash, the major coin for Bitmain Antminer D3, brought about $ 85 per day. At the same time, on the same day, the mining of other coins could bring 95-120 and up to 143 dollars per day. These are coins you probably never heard about. They are unknown to the general public and only thanks to the concurrence of the market, low complexity of mining, high efficiency of mining and some short-term growth of the price of these cryptocurrencies we have a situation that it is much profitable to mine that coins than Dash.
Such situations occur with different cryptocurrencies regularly, if you pre-program your equipment and will switch in such moments, shortly, to the mining of a more profitable coin, in the end, you can win up to 20 % efficiency to your mining.
Don't be Alone
You can entrust the management of your money making investment decisions to professionals.
There are large hundreds of crypto funds and investment funds that have analytical teams, whole sets of the business process making investment decisions more efficient, optimizing the maximum profitability and minimizing the risk.
These funds can specialize in trading or be more passive that diversify into different crypto assets. These can be actively managed funds that make long-term decisions based on news and fundamental indicators.
It can be professional mining companies that create entire data centers, with optimal configuration making the maximum efficiency in the mining.
All these companies will be ready to take your money into management and multiply them by their competencies and resources. Thus, you will remain a passive investor who only needs to keep track of how active, how well and how effectively the invested funds work.
Your task will only identify two factors: whether people are who you trust money in managing professionals and whether they are crystal-clear.
Your life experience is able to recognize both the layman and the charlatan, unlike the investment decisions as a beginner in crypto-currencies.