Below is a list of tips when using exchanges and trading on them.
- Use reliable exchanges that have a good reputation and have been around for some time.
- Set-up a strong password and secondary security google authenticator codes.
- Double check the deposit address and that you are receiving/sending the correct coin or you could lose your funds.
- Don’t use your exchange address to send Ethereum or Bitcoin to an ICO as you will lose your money. Don’t use your exchange address to have mining rewards sent to them as they often are not accepted and you will lose your coins.
- Double check when using the buying and selling section on an exchange and that you are using the correct buy and sell section and don’t mix them up or you could undersell or overpay for a coin.
- Don’t store coins on an exchange long term. Move the coins off into a compatible wallet you control as exchanges can be hacked, withdrawals can be frozen etc for a time.
- Be careful of following the chat box on some exchanges. People use them to convince others to sell or buy coins in order to profit off of new investors with little knowledge. Use them for entertainment purposes only.
- Have stop losses set up if you are not full time in crypto currency. Minimise your losses and maximise your gains. You can set trailing stop losses if you wish. Be aware that it is normal to see 20-40% dips in a coin overnight and you may find yourself being stopped out more than you like.
- Make sure that you are on the correct Cryptocurrency ticker symbol or you might end up buying a coin that you do not wish to buy.