Things to consider before cryptotrading

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Avatar for sanlin
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4 years ago

1. DO NOT use payment processors such as PayPal or Skrill under ANY circumstances.

If your exchange is P2P and it advices you not to do so, it's for a reason; scams are way too common, specially on PayPal. You could end up losing your money to unjustified claims from your clients and PayPal is known for giving a heck about sellers, unless they have a business account and also count with the bills of their trades. Otherwise, using your bank account is your best option.

I once got a claim through PayPal from a client and I lost $20 to him.

2. Avoid trading in fiat currency other than USD (or viceversa) if you don't have a bank account for that currency.

This would force you to use payment processors, just don't it. If you want to trade in a fiat currency other than USD and later convert the earnings to USD for whatever reason, consider getting them in cash and take conversion fees into account, if there are any; this is VERY important if the fiat currency you're trading with isn't stable.

I'm from Venezuela and as you all might have heard, the Venezuelan BolĂ­var Soberano (VES) is quite unstable due to the country's crisis. Though it's unstable, I now only trade in VES through national bank transfers in order to avoid using payment processors. What I do for converting my VES to USD (to save myself from inflation) is going to an exchange house/exchange bureau, and via POS (point of sale) pay the amount of VES I want to get in USD (cash) at the exchange rate of the day; it ends up costing me a little fee, but it's worth it.

3. If you don't have that much money, trade altcoins instead of bitcoins.

Most altcoins are pegged to BTC in some way anyway. With BTC over $10,000, you should better consider trading altcoins; choose the ones you consider most promising.

4. Transaction times and fees differ a lot between cryptocurrencies.

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