Today you can quickly and easily invest in cryptocurrency. You have the freedom to invest through online brokers, but you can’t say for sure if this is a reliable venture. There are many risks and pitfalls you need to face when you are thinking of entering this field. However, to get started, you don’t necessarily have to become a master in the world of computer science or finance. This means you have to make an informed decision. In this article, we will talk about some common mistakes that most cryptocurrency investors make. Read on to learn more.
1: You are buying the wrong coins
If you decide to buy bitcoin, you have to be careful. There are different types of bitcoin such as private Bitcoin, Bitcoin SV, Bitcoin Gold and Bitcoin cash. In other words, there are many branches to watch out for.
While it’s not bad or a scam, make sure you know what you’re buying. Even if you buy the wrong coin, you can still sell it back and look for the right one.
2: You are not for the Wild Ride
If you want to enter the world of cryptocurrency, you need to have nerves of steel to face volatility. Unlike the traditional world of finance, cryptocurrency has extreme volatility, according to Teresa Morrison, who is a certified financial planner in Arizona.
According to her, a new investor must first invest a small amount, such as $ 100 a month, and then forget about it. If you monitor the market daily, it will drive you crazy.
Also, just because you are a beginner, you can follow 2-3 familiar cryptocurrencies to you. Ideally, you can first consider installed coins such as Bitcoin and Ethereum.
3: You are not checking the address
Many cryptocurrency traders lose their coins just because they do not verify the address. Unlike a regular bank transfer, you can’t just cancel a transaction. So you have to be very careful when doing this type of transaction using cryptocurrency. If you are not careful enough, you can lose thousands of dollars in seconds.
4: You have lost access to your wallet
Although the number of bitcoins is limited to 21 million, the entire number of bitcoins is not created. The reason is that many coin owners have lost access to their wallets due to forgotten passwords.
According to a Chainananalysis report, 1 in 5 bitcoins extracted is unavailable due to lost passwords. So make sure you keep your password in a safe place before you start reading.
In short, we suggest you avoid these four most common mistakes if you want to become successful in the world of cryptocurrency trading. Hopefully these tips will help you be safe and succeed as a trader or investor.