Mistakes to avoid when trading Bitcoin
Investing in crypto on Immediate Connect is an exciting endeavor but most new investors fall prey to common traps. This spans from a lack of knowledge of crypto markets to poor security making new investors lose money.
In this article we are going to look at some common mistakes made by new crypto traders and how they can be avoided.
Lack of crypto knowledge
New investors are usually attracted by the hype going on surrounding cryptocurrencies. However, to invest you need to understand asset class and how it operates. Investing in an asset that you do not know how it works leads to disaster. You need to take some time in educating yourself on how different crypto projects work will help you make better investment decisions.
Ignoring fees.
Despite the many methods of purchasing crypto new investors do not understand how gas fees work on exchanges. When you purchase crypto with a credit card you may incur massive charges and also you could be charged extra feed by your credit card company. Knowing which crypto exchanges give low fees and also the best way to buy and trade crypto will save you a lot of money.
Get rich quick mentality
This mentality makes new investors think on a short-term basis. There is a chance of gaining massive profit and also incurring massive losses. A long-term investment mindset will help carefully choose your crypto investments and also pick high-quality investment projects with longer track records.
Storing crypto in online wallets
Cryptocurrency should be stored in a digital wallet. Using an online wallet is riskier than storing them offline. Hackers can drain your online wallet via scams. The safest way to store your crypto is through an offline hardware wallet. This is a USB stick that has advanced software and hardware encryption that safeguards your private keys.
Forgetting Seed Phrases or crypto passwords
Digital wallets need passwords to access. It is impossible to recover your cryptocurrency once you forget your password. Some wallets have a backup seed phase but if it is forgotten there might be no other alternative to recovering your crypto.
Improper wallet address
Making transactions between digital wallets is usually how you own your crypto. However new investors attempt to send crypto to your wallet and mistype the address. This can make it unrecoverable.
Being scammed
The crypto market is full of scammers. Scammers use complicated phishing methods to get to your wallet and convince you to transfer your funds to their wallet. These scams happen via messaging apps or email. Upon connecting to an application and giving it permission to access your funds that is how you get scammed. Thus, never connect your wallet to an unknown application. Also, keep your cryptocurrency in an offline hardware wallet.
In summary, investing in crypto can be tedious especially when you are just a beginner. However, avoiding these common mistakes can help you invest confidently and prevent you from losing funds due to a lack of knowledge.
