How to Work with Cryptocurrencies Without Technical Knowledge

One does not have to possess vast technological knowledge to operate cryptocurrency. It is estimated that by 2025, 50 million people in the EU will be users of cryptocurrency.

Wallets

Purpose of Wallets

Wallets are essential tools for storing cryptocurrencies securely. They safeguard your digital assets from unauthorized access.

Types of Wallets

• Hot Wallets: Connected to the internet, allowing for quick transactions.
• Cold Wallets: Operate offline, offering enhanced security.

Key Security Practices

• Disable password auto-save in your browser to prevent unauthorized access.
• Enable two-factor authentication (2FA) for added protection.
• Use strong, unique passwords for your wallet accounts.
• Diversify storage: Avoid storing all your funds in one wallet. Distribute them between hot wallets for convenience and cold wallets for safety.
• Backup and recovery: Always back up your wallet's recovery phrase in a secure, offline location.
• Regular monitoring: Periodically review wallet activity to detect unauthorized transactions promptly.

Using Cryptocurrency

• Cryptocurrency can be used for payments.
• Bitcoin is increasingly accepted by online merchants.
• Services are payable with digital assets.
• Peer-to-peer transfers require the recipient’s wallet address.
• Transactions typically process within 10-60 minutes.
• International transfers with cryptocurrency have lower fees than banks.
• Verify that the service supports your currency before proceeding.
• Double-check the recipient’s address to avoid errors.

Tips for Securing Your Cryptocurrency

• Choose cold wallets for safety.
• Keep credentials confidential.
• Beware of phishing attempts.
• Use complex passwords.
• Enable Multi-Factor Authentication (MFA).
• Update software regularly.
• Install reliable antivirus software.
• Avoid public Wi-Fi.
• Diversify your storage.
• Backup recovery phrases.
• Stay informed.

Monitoring

Cryptocurrency rates are highly volatile, with values often fluctuating by 5-10% in a single day. Platforms like CoinMarketCap, CryptoCompare, and Binance Price Tracker provide up-to-date information on cryptocurrency rates.

• Enable notifications for specific price thresholds to act quickly when rates reach desired levels.
• Stay informed about announcements from large companies, government policies, or global events.
• Analyze past performance to identify trends.
• Use candlestick charts and indicators like RSI or moving averages to make informed decisions before buying or selling.
• Always consider exchange fees when trading. On some platforms, fees can range from 0.1% to 0.5% per transaction.
• Track not just Bitcoin, but also Ethereum, Binance Coin, and others. Diversifying investments reduces overall risk.
• Many tracking services offer mobile apps with advanced features like portfolio tracking and real-time updates.
• Crypto markets operate 24/7. Be aware of activity peaks during major time zones, such as New York or Tokyo.

Regulation

Cryptocurrency in the EU is subject to taxation. Verify the tax regulations in your country.

• Income tax rates on cryptocurrency range from 10% to 30% in some countries.
• Tax documents can often be downloaded directly from exchanges.
• Keep records of all transactions for accurate reporting.
• Tax rules vary across EU countries.