Not everyone who knows about cryptocurrency is proficient in its usage.
There are still a ton of things newbie investors need to understand and master if they want to succeed in cryptocurrency.
I’ve been a newbie once and I would like to share my mistakes which hopefully you can avoid. Be careful or else you will end up wasting thousands of dollars.
Take note of the most common pitfalls below.
Table of Contents
1. FOMO (Fear of missing out)
People usually buy a coin because everyone else is doing it.
You see the price of the coin increase, and you just cannot help but think that the new cryptocurrency is a good investment.
I know most millenials experience the FOMO especially with Bitcoin.
Because they’ve seen Bitcoin’s value grow over the years, they’re hoping that new cryptocurrencies can get them rich quickly.
Know that not all cryptocurrencies are worth investing in. Make sure that you read more about the coin and know the team behind it.
Maybe find out the reason why a coin is getting so much attention.
2. Not keeping your coins in multiple wallets
Another mistake is when you keep all your coins in a single wallet. This is important for security reasons especially if your coins are growing.
It’s always a good practice to diversify your investments across several Bitcoin wallets. If one develops a problem, you still have another.
3. Leaving your coins in exchanges
Remember that exchanges are not wallets. Although they have an extra layer of security (2FA), still all exchanges are risky. Hacking is a possibility.
Exchanges are constantly under attack. If possible, only keep your coins in an exchange that you can actually risk losing.
There’s the benefit of real-time exchange in exchanges. Some people leave their coins in exchanges because of this reason.
It’s okay to do this if you’re going to trade anytime soon. But it also won’t take an entire day for you to keep your coins safe by transferring them to a trusted wallet.
4. Ignoring opportunities to earn more Bitcoins
Yes, there are several ways to make more Bitcoins without buying or even mining them.
As a newbie, know that multiple approaches exist to earn more of this cryptocurrency.
In my Bitcoin investment journey, I discovered two passive opportunities that easily help anyone earn additional coins.
You can sign up for these systems for free. Within BWC and EPP are several ways for you to earn Bitcoins and commissions.
5. Sending to the wrong crypto wallet
A lot of people do not take the time to double check everything when they transfer funds to another wallet.
If you’re going to send cryptocurrency to someone, be sure that you know and trust these people. Why?
Bitcoin transactions cannot be reversed. The party that receives your funds will be the one to return your coins.
Also, verify if the wallet you’re sending your coins to matches your cryptocurrency. For example, you shouldn’t send funds to an Ethereum wallet if you have Bitcoins.
6. Buying into scams
Nowadays, there are countless tokens other than Bitcoins. These are called altcoins.
Those who are very new to the world of cryptocurrency have a difficult time distinguishing between a legitimate coin and a scam.
As a result, they buy into every new coin that emerges in hopes of making an instant major profit.
In your journey, you’d probably fall into the trap of investing in altcoins that come and go.
Be very careful with initial coin offerings and online companies that promise you true gains from their coins.
Read as much as you can. Know the identities of these altcoin creators and the team behind them.
7. Ignoring Bitcoin communities
Joining communities to learn from is a good thing because that’s the only way for you to share ideas with and learn from like-minded individuals.
Benefit from a community that can provide you with the latest cryptocurrency news and updates. Gain insights and discover more opportunities recommended by proficient traders.
These 7 cryptocurrency mistakes might sound too simple but they will cost you a fortune if you’re not careful.
It has taken a while for me to get confident investing in cryptocurrencies and systems that earn me more of them.
I hope this list of mistakes will enlighten you. Don’t rush into anything and remember these mistakes before you make decisions.