Ten Mistakes to Avoid by a Crypto Beginner
In any industry, being a newbie means that you will make some mistakes. Mistakes make life difficult, and then it seems that you will never stop being a beginner.
The same thing happens in the cryptocurrency industry – many new people make mistakes that are unique to beginners. Of course, it is better to learn from the mistakes of others. But how would one make smaller ones?
Let’s look at the most common mistakes of crypto beginners and get acquainted with some tips on how to avoid or fix them.
1. You have not done your own research. Before starting anything new, of course, you need to conduct your own research. In the end, you are going to invest in cryptocurrency money that you have earned through hard work, and therefore you need to understand well what cryptocurrencies are and what your next steps can lead to. It’s not enough just to listen to friends or “experts” on the Internet who can “help” you drain money.
Do a little research before entering the world of cryptocurrencies. You need to understand the above, and only then join the trade.
2. You only strive for huge profits. Many miners have now become millionaires, so perhaps you want to buy your own equipment and start the mining process. Nevertheless, one should not be included in it without having studied thoroughly, and keeping in mind only large profits. Mining requires a lot of electricity, and it will require the payment of huge bills, which can cost more than your profit from mining.
3. You are impatient. It is difficult to be patient, but patience and calmness must always be maintained. There will always be third parties or factors that push you to buy or sell, but if you show patience with your crypto coins, then you will be rewarded. The short-term and occasional benefits of trading are, of course, good; But in general you need to adhere to a strategy and an appropriate plan.
4. You sell thinking that the price is quite high. You never know how high the price of a token will go. If you managed to sell coins, and the price continued to rise, then of course you can regret it. Therefore, you need to draw up a plan that clearly sets out your goal in the form of a certain profit, which you need to come to, while showing patience. Patience is also necessary in order not to start a panic sale, only seeing that your token has gone down a bit.
5. You do not have private keys to your cryptocurrencies. This item deals with the security of your coins and the confidentiality of the data that provides access to them. You should always have your own private keys, because wallets can crash, exchanges can be hacked, and your loss account can go up to thousands of dollars.
6. You are not a member of a good community. There are dozens of good cryptocurrency communities, and it will be a mistake if you do not join at least one of them. You could get a lot of knowledge and support from them. Loneliness is a difficult path, especially considering the fact that in communities you can join in many wonderful things.
7. Sending funds to the wrong cryptocurrency wallet. This is a mistake that people make quite often. To avoid this, you need to double-check the correctness of the address to which you decided to send the funds. You need to make sure that you do everything carefully and without rushing.
8. You do not have copies of your passwords. You must have offline offline copies of all your passwords, private keys and other important data, if you do not want to say goodbye forever to your money. This is important because you will need to access all your cryptocurrencies, even if your computer crashes or is stolen.
9. You do not use two-factor authentication. Although you do not like this, be sure to activate two-factor identification (2FA). This is necessary to ensure the security of your account. You should also keep your recovery codes offline so that you can unlock your account if something happens.
10. You are afraid that you will miss something (FOMO – syndrome of lost profit). This is one of the biggest problems in the world of cryptocurrencies. There are many success stories, but you can’t always guess what really turns out to be good for you. This syndrome may prompt you to make rash decisions. It should be understood that you will miss only a few things, but not all.
These were the most common mistakes made by crypto novices. You should try to remember them in order to avoid them in the future.