As Bitcoin is on the rise again, with it recently breaking the $10k mark we can expect many investors yet again are turning their eyes to it.
With interest from new and first-time investors with perhaps little to no previous investment experience it will be easy to make mistakes and in what might seem as confusing to understand and with little time to do research.
When there’s hope for quick returns and big gains even the best of us can get a bit greedy and make mistakes.
So I hope before that happens to newcomers to the space I wanted to try and get your attention for just a few minutes and share some of the common mistakes that beginners make, and that might help you to avoid them.
1 ) Invest everything they got due to FOMO
A common thought process of most humans is that when an opportunity present itself we want to grab it, and make sure we get a big slice of it before it’s gone.
With the reasoning beginners think it is wise to throw everything they got, and perhaps more by taking out loans to invest as quickly as possible.
Please, don’t do this. Be smart, and have a trading strategy in place. With that comes; a budget (maximum what you can invest) and a time-plan (how long are you in it for).
Then do you research and treat every investment as such.
2 ) Forget keeping backups
With cryptocurrencies we can and should be our own banks. That means keeping a secure backup copy of your private keys, the secret code to you cryptocurrency wallet (learn more about private and public keys).
So make sure you keep every code backup somewhere safe and secure. And not in your personal email account emailed to yourself, or on your unlocked personal computer. Come on, be smart and do it correctly.
3 ) Falling for scams
There are too many others in this space looking to make a quick profit like yourself. But sincerely worse people than you. People that try to make this profit by scamming you, and others.
And the cryptocurrency and Bitcoin space is full of them.
It is particularly common with blockchain projects that scams, trying to get funding for a non-existent project. OneCoin and Bitconnect being some of the more prominent ones.
Other common examples are cryptocurrency exchanges that scam. Either with fake trading volume, or just plain scams with plans of running away with your funds as soon as the timing is right.
So do your research and look into reviews for more trusted crypto exchanges list by Go CryptoWise, and check out useful tools like CoinPaprika that tracks and audits crypto exchanges to verify what’s fake or genuine trading volumes and liquidity.
Don’t trust someone contacting you online promising you that you can make some huge gains with just a small deposit and one-time cost to you. 100% of those are scams.
I hope you did take your time to read this to the end. And besides of the fears and scams being mentioned here it can be very rewarding and fund entering this fantastic space. So welcome!
