If you’re looking for long-term holding or wealth preservation, I would recommend checking out this concise guide on the best way to invest in bitcoin in 2020.

For those wanting to get into the fast-paced day trading side of things, I’ll give a few pointers for newbies looking to get into crypto day trading for the first time:

Watch Out for Altcoin & Exchange Scams

While it may not be news to some, some altcoins fork the source code of Bitcoin and other coins purely to commit fraud. These coins may seem sincere, invest in marketing, but in the end, they will find a way to dump the coins on unsuspecting investors and disappear with the anonymity of the internet.

Exchanges are not to be trusted as well, considering how they can easily deny withdrawals, are susceptible to hacking, or pump with the market with fake transaction/statistics. Even big exchanges like Mt. Gox ended up cutting people off from their money, so don’t consider your coins safe until it’s in your wallet.

Twitter Influencers are Not Looking Out For You

While it’s foolish, so many people trust trading advice from popular social media accounts. I would admit that there are some good characters out there, but since a simple tweet or blog post sways the market in a certain direction, it’s tempting for influencers to organize pump & dump schemes.

Some shills are easy to spot with how aggressively they push the narrative of certain altcoins, exchanges, or trading products. Others may be benign, up until they receive a big fat sponsorship offer from a crypto company.
I would advise any trader to stick to the top few cryptocurrencies, and if you want to risk early investment of new altcoins, do very thorough research & use your brain.

Risk Management

While investments of any sort is a gamble, it’s always smart to hedge your trades to prevent the risk of loss. This can be applied to day trading or a long-term investment.

One simple strategy that could help significantly is taking advantage of stop-loss orders. This feature present on some exchanges will allow you to automatically sell your Bitcoin when it reaches certain thresholds. This is very important considering price swings can happen while you’re asleep!

Buy Low & Sell High

It should already be common sense, but so many traders get spooked by any sudden drop in the market and will liquidate at rock-bottom prices. Bitcoin has wild swings due to its 24/7 availability and mostly unregulated trading. Just looking at any long-term chart, the spikes in price seem quite insignificant while following the gradual upward trend.

Compare 2014 to 2020, not what happened last week

If you are going the day trading route, you can scoop up cheap crypto when the sheep are panicking, and sell it when things start to return to the mean.