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5 Tips for Buying and Selling Cryptocurrencies

If you’re planning to invest in digital currencies, it’s important to get the basics right. Investing in cryptocurrencies means different things to different people; some might be looking at long-term investments and others might just be looking to make a quick buck (pun intended). Whatever your reasons for buying and selling cryptocurrency, here are five tips to keep in mind. The tips below focus on buying and selling cryptocurrencies, but can apply regardless of your end goal (investment or speculation).

Have a plan for your portfolio

There is a vast number of coins to trade so it's important to understand which will give you the best return. Before investing, check the coinmarketcap page for your chosen currency to see if it has been rising or dropping in value. You should also check market news on cryptonews sites such as CoinDesk, Coin Telegraph, Cryptoslate, Crypto Insider, CoinSpectator etc.

5 Tips for Buying and Selling Cryptocurrencies

Consider how you will use your coins

#1. Diversify your portfolio: When buying cryptocurrencies, diversify your investment to reduce the risk of investing in a single cryptocurrency. This will make you less vulnerable if it takes a sudden downturn.

Diversify! Diversify! Diversify!

When you're new to the crypto world, it can be overwhelming to know where to start. The first thing is to set up an account with a crypto exchange, buy some bitcoins, then diversify by getting other coins like Ethereum or Litecoin. You can also invest in specific ICOs, or buy into cryptos like Yem or Terra Luna that are mining their own cryptocurrencies.

Research, research, research

I think you should research your options. There are a lot of ways to invest in cryptocurrency, but some options seem more risky than others. Take the time to do some research, but don't get discouraged. Be careful about any crypto bubbles that may happen, because in crypto trader trading news crypto invest crypto coinmarkets does not always correlate with profit.

Don’t forget about taxes

Don’t forget about taxes

Watch out for taxes when trading cryptocurrency. According to Coinmarketcap, as of December 11, 2017, the aggregate value of all cryptocurrencies exceeded $600 billion. With some estimating that total could hit $1 trillion by 2020. Here are five tips on how to buy and sell cryptocurrencies with limited exposure to tax penalties.