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Crypto Wallets & NFTs: What Traders MUST Know

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Written by Timothy Sykes
Updated 3/25/2022 6 min read

A trader needs the right resources to stay in the game — the right broker for your trading style, a great stock screener, and tools like StocksToTrade’s Breaking News Chat to give you an edge.

Now that I’m jumping head-first into the non-fungible token (NFT) market, I have a similar approach. I want all the armor and resources I can possibly get. That starts with the basics, like a crypto wallet.

You’ve probably heard of NFTs — if you want to learn how I’m taking advantage of the opportunities of this high-potential market, join me on Wednesday, March 30 at 8 p.m. Eastern for a once-in-a-lifetime event…

Get access now!

But you may not know what a crypto wallet has to do with NFTs or how to get started with one. Keep reading — here’s what you need to know…

What’s a Crypto Wallet?

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Your cryptocurrencies are on the blockchain — a public digital ledger that logs transactions.

To access your cryptos, you have a private key. These keys are crucial. They prove that you’re the owner of the currencies and enable you to make transactions. Your crypto wallet stores your private keys.

There are two key types of crypto wallets: hot and cold wallets. Here’s the difference…

Hot Wallet

A hot wallet is digital storage that’s connected to the internet. You can access it on your computer or through an app on your phone.

Some examples of hot wallets include Phantom, Coinbase Wallet, and Metamask.

Cold Wallet

A cold wallet is NOT connected to the internet. It’s on a device that keeps your crypto info offline. One popular type of cold wallet is a hardware wallet. It looks like a USB drive, but there’s an important difference … Where a USB drive can only store your keys, a hardware wallet contains your key, and you need to physically approve transactions.

Two popular hardware wallets are Ledger and Trezor.

Why Do You Need a Crypto Wallet?

Crypto wallets store your NFTs and crypto tokens. This is really important, because if you forget or don’t have access to these private keys, you lose access to your cryptocurrencies.

Without access, you can’t process transactions.

What’s the Best Crypto Wallet?

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That’s like another question I hate: What’s the best broker? I often say that I go with the one that sucks the least — but check out the deal I started with this broker. But really, what you have to think about is your specific situation and goals and what will be the best fit for you.

Start With the Blockchain

NFTs are units of data stored on a blockchain. Different blockchains provide different markets for NFTs.

Ethereum is one of the biggest blockchains for NFTs. It has a huge market, NFTs generally command higher prices, and the network’s established and highly secure.

But they don’t own the NFT marketplace.

There are several up-and-coming blockchains for NFTs, like Polygon and Solana. They have a few advantages…

Both have lower “gas fees” — a term for transactions on the blockchain. They can also process transactions faster than Ethereum.

One of the reasons I like Solana is that various innovations like its “Proof of History” mechanism optimize its speed and make it more environmentally friendly than a blockchain like Ethereum. I try to practice what I preach with my charity, Karmagawa!

Which Crypto Wallet Should You Choose?

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There’s not one answer to this question. Think about it like choosing a brokerage account for trading. They all have their strengths and weaknesses. For instance, if you’re a short-seller, you want to find a broker that has shares to short and good borrow fees.

Blockchains obviously aren’t brokers. But you still have to think about your objectives.

First, think about the advantages and disadvantages of a hot wallet vs. a cold wallet.

Hot wallets are convenient, but there’s a higher risk of getting hacked than with a cold wallet. That’s a real concern. Several people have suffered staggering losses due to hot wallet hacks.

While a cold wallet is harder to access by outsiders, you could lose it or destroy it by accident.

Next, if you’re interested in NFT transactions, you need to consider the market you’re interested in. For instance, a Phantom wallet is a popular option for NFT transactions on the Solana blockchain. But if you’re interested in the larger market on Ethereum, you might want to consider a different wallet.

Wanna Join the Club?

I was initially skeptical of NFTs … and I changed my mind. In fact, I’m even more excited about NFTs right now than I am about penny stocks! The opportunities out there are incredible — they can’t be ignored.

If you’re ready to diversify and maximize on this once-in-a-lifetime chance, join me for this event. Don’t sleep on this — I’m even giving away a limited supply of my first NFT collection!

Get access now!

Do you have a favorite crypto wallet? Are you excited about NFTs? Leave a comment below and tell me what you think!

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Timothy Sykes

Tim Sykes is a penny stock trader and teacher who became a self-made millionaire by the age of 22 by trading $12,415 of bar mitzvah money. After becoming disenchanted with the hedge fund world, he established the Tim Sykes Trading Challenge to teach aspiring traders how to follow his trading strategies. He’s been featured in a variety of media outlets including CNN, Larry King, Steve Harvey, Forbes, Men’s Journal, and more. He’s also an active philanthropist and environmental activist, a co-founder of Karmagawa, and has donated millions of dollars to charity. Read More

* Results are not typical and will vary from person to person. Making money trading stocks takes time, dedication, and hard work. There are inherent risks involved with investing in the stock market, including the loss of your investment. Past performance in the market is not indicative of future results. Any investment is at your own risk. See Terms of Service here

The available research on day trading suggests that most active traders lose money. Fees and overtrading are major contributors to these losses.

A 2000 study called “Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors” evaluated 66,465 U.S. households that held stocks from 1991 to 1996. The households that traded most averaged an 11.4% annual return during a period where the overall market gained 17.9%. These lower returns were attributed to overconfidence.

A 2014 paper (revised 2019) titled “Learning Fast or Slow?” analyzed the complete transaction history of the Taiwan Stock Exchange between 1992 and 2006. It looked at the ongoing performance of day traders in this sample, and found that 97% of day traders can expect to lose money from trading, and more than 90% of all day trading volume can be traced to investors who predictably lose money. Additionally, it tied the behavior of gamblers and drivers who get more speeding tickets to overtrading, and cited studies showing that legalized gambling has an inverse effect on trading volume.

A 2019 research study (revised 2020) called “Day Trading for a Living?” observed 19,646 Brazilian futures contract traders who started day trading from 2013 to 2015, and recorded two years of their trading activity. The study authors found that 97% of traders with more than 300 days actively trading lost money, and only 1.1% earned more than the Brazilian minimum wage ($16 USD per day). They hypothesized that the greater returns shown in previous studies did not differentiate between frequent day traders and those who traded rarely, and that more frequent trading activity decreases the chance of profitability.

These studies show the wide variance of the available data on day trading profitability. One thing that seems clear from the research is that most day traders lose money .

Millionaire Media 66 W Flagler St. Ste. 900 Miami, FL 33130 United States (888) 878-3621 This is for information purposes only as Millionaire Media LLC nor Timothy Sykes is registered as a securities broker-dealer or an investment adviser. No information herein is intended as securities brokerage, investment, tax, accounting or legal advice, as an offer or solicitation of an offer to sell or buy, or as an endorsement, recommendation or sponsorship of any company, security or fund. Millionaire Media LLC and Timothy Sykes cannot and does not assess, verify or guarantee the adequacy, accuracy or completeness of any information, the suitability or profitability of any particular investment, or the potential value of any investment or informational source. The reader bears responsibility for his/her own investment research and decisions, should seek the advice of a qualified securities professional before making any investment, and investigate and fully understand any and all risks before investing. Millionaire Media LLC and Timothy Sykes in no way warrants the solvency, financial condition, or investment advisability of any of the securities mentioned in communications or websites. In addition, Millionaire Media LLC and Timothy Sykes accepts no liability whatsoever for any direct or consequential loss arising from any use of this information. This information is not intended to be used as the sole basis of any investment decision, nor should it be construed as advice designed to meet the investment needs of any particular investor. Past performance is not necessarily indicative of future returns.

Citations for Disclaimer

Barber, Brad M. and Odean, Terrance, Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors. Available at SSRN: “Day Trading for a Living?”

Barber, Brad M. and Lee, Yi-Tsung and Liu, Yu-Jane and Odean, Terrance and Zhang, Ke, Learning Fast or Slow? (May 28, 2019). Forthcoming: Review of Asset Pricing Studies, Available at SSRN: “https://ssrn.com/abstract=2535636”

Chague, Fernando and De-Losso, Rodrigo and Giovannetti, Bruno, Day Trading for a Living? (June 11, 2020). Available at SSRN: “https://ssrn.com/abstract=3423101”