Are there any things that are important to know before you begin to invest 100-250k into cryptocurrency? Of course I have read a lot of stuff and know the basics including cold storage, using the right exchanges with the proper tier rating etc. Also already made a lot of small transactions to get the comfortable with trading.
E.G. when you want to buy 1000 ETH, what would be the best strategy?
- Buy 1000 ETH at once or split it in e.g. 10x100 ETH?
- Same question for selling 1000 ETH. Will it be wise to split?
Maybe there are other things in general worth knowing. I tried to search the forum for answers but could not find anything on this topic.
Help is much appreciated.
E.G. when you want to buy 1000 ETH, what would be the best strategy?
- Buy 1000 ETH at once or split it in e.g. 10x100 ETH?
- Same question for selling 1000 ETH. Will it be wise to split?
Maybe there are other things in general worth knowing. I tried to search the forum for answers but could not find anything on this topic.
Help is much appreciated.
It makes sense for you to use multiple wallets to secure your coins if the sum is large enough. The biggest issue is if you diversify into multiple coins that means you would also need to update multiple blockchains if you add new transactions at some point in time in order to send and utilize the coins, in your case 10x100 ETH wallets depending on how it is split up could mean downloading 10 Geth Wallets with 10 Addresses and Private Keys and storing them somewhere safe. While one wallet would put all the risk of it being lost or stolen into 1 basket but provides the convenience of access and ease.
If you mix online storage options then you run the risk of a site running away with your coins etc.
The balance and distribution is up to you to decide some could be hotwallet connected to the internet on computer other parts cold storage perhaps some online or on mobile etc, in the end I would suggest splitting up the wallets into manageable amounts but not having so many that you might lose the wallet by accident and lose a portion of your coins aka if you have a mobile wallet etc have a backup.dat. Except online exchanges where you don't have the private key etc.
In other words practice safe backup and storage and perhaps add a password phrase for each wallet and remember it! Do that and you should be fine with just a few wallets, I know if I had a BTC ETH DASH CLAM etc wallet and separate balances for each one I would prefer to have one or two dedicated wallets per coin than 10 or 20. You pick what you want in the end.
If ether is all you want then and that works for you then good but, if some clients have staking example Clam or Dash then having a sufficient amount to receive rewards from the network is better and smarter than having multiple wallets with a balance to small to stake. So knowing your altcoin and the value of it's node may be a big decider on how much you put in, by giving these some considerations you should be perfectly fine with managing your assets in a proper way.
