Cryptocurrency FAQ’s

18 March 2019 | Mon

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Securing your coins:

We highly recommend that you do not store any coins on centralised exchanges. Get a bitcoin wallet and control your coins. There are many hardware wallets available in the market. Hardware wallets are compact and stay offline which keep hackers and malware away. It is an ease to backup hardware wallets with a low margin of error even for the less technically inclined.

Do not lose money by avoiding cryptocurrency scams

Please exercise due diligence. Here are some basic rules with the aim of avoiding scams.

  1. We cannot insist enough, always do your research on the intended exchange to make sure it can be trusted. Look out in forums for comments from other users. Check out the feedback. If most of the feedback appear to be positive, you are more likely to not face any issues with your trade.
  2. Any service that claims to pay interest on your bitcoins or increase your bitcoins is extremely risky. Always remember, if it is too good to be true it normally is an outright scam.
  3. Use escrow services. Do not ever to agree to trade by sending cryptocurrencies first and seller will pay you through PayPal. Cryptocurrencies do not record the identities of payment’s sender or recipient; therefore, payment gateways cannot force scammers to pay. Crypto payments cannot be reversed, and scammers can easily keep your coins and not pay you.

Question: Are Bitcoin and other cryptocurrencies legal?

Answer: Bitcoin is legal in nearly every country. Select a few counties have banned the use of bitcoin. Please be sure to check the legal status of bitcoin and cryptocurrencies in your country.

Question: Can I buy partial bitcoins?

Answer: you most definitely can. Each bitcoin is divisible to the 8th decimal place. This means each bitcoin can be split into the 100,000,000 pieces.

Question: Can anyone buy coins?

Answer: Cryptocurrencies require no permission from any authority to purchase and use.

Question: What happens once I have purchased cryptocurrencies?

Answer: Cryptocurrencies are actually encrypted digital codes. When you buy, the seller is using a wallet to transfer ownership to you. Once the purchase is completed, you now own the codes.

Question: Does the news affect the bitcoin market?

Answer: Bitcoin is a decentralized protocol with no central authority involved. The probability of Bitcoin affected by some significant news is present, but chances are the qualities behind Bitcoin will ensure they stay around for the foreseeable future.

Question: How do I secure my cryptocurrency?

Answer: With cryptocurrency, you can be own bank and have full control over your coins. There are many software wallet options. It is recommended that a hardware wallet is used. Another option is to secure them using paper wallets generated offline.

Question: Recovering your account after a failed HDD?

Answer: All wallets will issue a private key and most wallets will provide a 12-word recovery seed. Have either or both written down and keep it safe offline.

A basic guide to investing in Cryptocurrency:

Cryptocurrency is still in its infancy and has huge growth potential. Cryptocurrency is still a market and it behaves like any other market. Like all markets, some basic principles can be applied. It is of utmost importance that an investor understands that the crypto market isn’t any different compared to other markets and that some rules do apply. A deeper understanding of how various markets work will be an added advantage to investing.

Do not try to time the market.

The likelihood of timing of the market consistently is non-existent. Avoid trying to predict the highs and lows. Some people have better luck compared to others but the risk to reward ratio for this Is remarkably high.

Invest only what you are willing to lose.

What seems like common sense cannot be repeated enough. Unless you have very deep pockets and money never seems to run out, do not throw all your savings into the crypto market or any other market no matter what you read and hear. Investing more than you can afford to will cause more distress than any benefit to be reaped. We would recommend 20% of income if you do not have any debt or 10% and below if you have other commitments. Please use your best judgment

Understand the coins you are buying.

Do not rush to buy a coin without doing significant research. It is surprising the number of people that will purchase a coin just by basing it on voted comments. If you notice a particular coin is popular, take the time to research and make an informed decision. Try to understand what problems the company is trying to solve? What are their plans and how active are they in their community?

Do not buy & sell on emotions.

In the midst of conducting research, it is no surprise to come across stories of people that panic sells or buying high. Believe in your investment and hold for the long-term hence what happens from day to day is not going to matter significantly. If the ups and downs of the crypto market are something you cannot handle, then perhaps you should not invest.

Expand your portfolio.

To simplify it, buy the top 10 coins and place a bigger percentage of your investment in safer coins. Diversifying your investment portfolio can decrease your risk in the crypto market.

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