!NOT FINANCIAL OR LEGAL ADVICE! USE THIS INFORMATION AT YOUR OWN RISK!
I'll try and add to this list over time, but this is what I have so far:
- Only buy crypto with money you don't mind losing and won’t need for a couple of years.
- Keep what you don't need short term access to in an offline wallet of which only you control and hold the private keys safely in a non-digital format.
- Constantly do your own research, don’t trust, always verify everything. Here is a good place to start.
- Avoid exchanges that are not well-known.
- Avoid coins that are not well-known.
- Avoid any person that claims ridiculous returns. Not sure what ridiculous returns are? Basically anything over 10% a year is high, but read this for more information.
- A lot of useful information can be found on Telegram Groups. Start by joining the Koinexpert Telegram groups here and here.
- Diversify! It's great to have Bitcoin, but probably not a bad idea to also have some ETH, BCH, LTC, XRP, etc.
- Have a strategy and do not buy out of emotion. Whether that is FOMO (Fear of Missing Out) or selling because the markets are dropping. You need to have a plan before you start.
- Don't know how to get a strategy/plan? Stock to the DCA Method (dollar cost average). This essentially means buying a few hundred Rands of Bitcoin every week, irrespective of the price, and then waiting for a few years (usually 2 - 4 years).
- If something sounds too good to be true, it probably is. So watch out for Bitcoin prophets, shills, scammers, con artists, etc. If you are in doubt, simply post your question in the Scam Corner and the Koinexpert community will help you get to the bottom of it! Also please do read this great article.
- Make sure you know the difference between "maker" and "taker" fees.
- Make sure you know what a "spread" is.
- Make sure you understand "candles", "Stoch RSI" and "moving averages".
- Avoid crypto mining unless you are a really big bitcoin nerd or have a seriously rock solid long term plan. The reality is that it is unlikely that you will make money from it because even the top guys are struggling to make money from it.
- There is no mining contract that you can buy online that will give you a return. NOT ONE. They are all scams.
- Understand tax and the implications of it! Are you a South African citizen who trades with crypto thinking that you don't have to declare it? You do. Don't be fooled. Crypto is taxable in South Africa and just about anywhere else in the world. SARS doesn't care if you make money with crypto, or with cows, or with grapes, or with whatever, if you generate a profit, you must pay tax on that profit, even if it is crypto.
- Don't borrow. Not to buy crypto or anything else. Borrowing is 9 times out of 10, a bad idea, especially if you are doing so to buy crypto, or gamble.
- A "Technical Analysis" is when a trader looks at the graphs of stocks or coins and makes an investment decision based on it. While many would argue that is effective, many believe that analysis the stock market or crypto is the same as going to the casino's roulette table, looking at the last 50 results and then thinking that it has some sort of bearing on what the 51st result would be. Roulette is completely random. Even if it feel on Red for 50 consecutive times, there is no guarantee that the 51st spin will also land on Red.
- You focus on "sh*tcoins". Your portfolio should only have a tiny portion of the lesser-known coins in it.
Comment if you think there are any tips I need to add! :-)