Common Crypto Mistakes You Should Avoid
The journey toward becoming an expert crypto investor or trader requires a lot of commitment and discipline. You must constantly learn and practise what you’ve learnt to improve your knowledge and skills. If you’re starting this journey, we have some tips to guide you along the way, so you avoid making common mistakes in the crypto space. But not only beginners can fall prey to these mistakes. Anyone can. Whether you are just getting started or need a little reminder of the common mistakes to avoid, this post is worth your time.
Forgetting your Private Key or not Storing it Properly
Crypto is based on ownership, and your private key or key phrase is the symbol of that ownership. If you lose them, you could lose access to your crypto forever. Also, if you let them fall into the wrong hands, you may become a victim of crypto theft. Thus, you must be meticulous in storing and backing up your key phrase or private keys.
Buying a Cryptocurrency Simply Because the Price is Low
You must carefully observe the market and engage in proper fundamental and technical analysis before diving in and purchasing any crypto. That the price of an asset is low only sometimes indicates that you’d be getting it at a bargain price. Low prices might result from a fall in user rates or abandonment by the developers etc. While the general advice is to buy the dip, you want to avoid ending up in a situation where you buy the dip only for it to dip further. Don’t get caught lacking!
Going All in
One mistake people tend to make is dumping all their money into crypto without much thought or thinking that crypto is easy money. Anyone entering the crypto market must understand the risks involved and equip themselves with proper risk management techniques. You shouldn’t invest all the money at your disposal or even borrow money to invest or trade. Some advise that you only put the money you can afford to lose into crypto.
Falling for Scams
There are nefarious actors in the crypto space who seek to scam unsuspecting investors. For example, one may receive mail from an entity promising to return double or triple the amount sent to a digital wallet. Such emails are merely cloud multiplier scams; avoiding them requires being wary of any deals that sound too good to be true. More often than not, they’re, in fact, too good to be true. You should also avoid clicking random links or making use of non-reputable wallets.
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