With the constant news of cryptocurrency market value going upward, new investors have taken a double turn to check out the buzz. Since it is very probable to get caught up with the hype, novice investors and traders often commit mistakes that make them lose their investments or suffer huge losses.
This article will talk about the common mistakes you should watch out for to avoid possible loss of profit and make you aware of the risk you should expect when you decide to invest in cryptocurrency.
Buying When the Price Is Low
Just because the price is low, it does not mean you should buy more crypto. Research and analyse why it dropped; there is always a reason for it to drop in value; maybe developers leave the project, so it stops getting updated, making the crypto price of that specific one drop in its market value. This often happens to small-time cryptocurrencies. So watch out for cryptocurrencies with falling user rates.
Also, when buying and selling cryptocurrencies, you should always choose the right crypto platforms and applications that enable traders, especially the new ones, to be guided in trading with its system that connects you to reliable brokers in your region.
One recent example that is making waves online due to its ability to kickstart an investing journey while keeping investors safe is Bitcoin Profit. The platform has enjoyed numerous positive reviews across various online spaces.
Falling for Scams
Cloud Multiplier Scams
When an email gets to you telling you that they can give you the best investment opportunity, with the promise that you can take back double or even triple your investment if you put Bitcoin or any kind of crypto on a particular digital wallet, don’t ever fall for this, it is a scam.
Criminals can manipulate and fake a cryptocurrency’s buy and sell orders to make its market value skyrocket, which will make investors buy that cryptocurrency, which is something to watch out for, especially for new and unknown cryptocurrencies.
When traders get caught up in this and are encouraged to buy, they will get nothing but loss since criminals would then cancel the orders, which they faked from the start; this, in turn, will make the prices of that cryptocurrency crash. The unknowing traders will then be left with a loss of investment.
Another way for criminals to make their cryptocurrency hit the roof is when they own a lot of cryptos, which they can obtain through mining the crypto before it is even out in public; then, they will further pump the price by promoting the new crypto. When they make the crypto public, for the reasons mentioned, the price is higher, so they sell their previously owned crypto at a higher price and then disappear.
Malicious Wallet Software
It is essential to have trusted wallet software. A wallet is a requirement for every crypto investor. But choosing the right ones must be done carefully to avoid falling for scams and malicious software out there. Be prudent to watch out for red flags and conduct background research beforehand.
Small-time and unknown wallet software found in Google Play Store or the App Store can be dangerous, for they can steal your crypto funds by hacking your code. You can just think about the reason why they are small and unknown. Since you will need a secure wallet, go for the best ones.
With over 10,000 types of cryptocurrencies out in the market, it is easy to get confused and be caught up with the fake coins, so just know that there is fake crypto in the mix.
With fake coins, it is the way criminals hack into your info so they can try to steal your money as well as your identity. This is possible through phishing; they convince you to go through a site and click on something that will link through emails suggesting you install something on your computer, without knowing that computer software will now steal your data and passwords.
The best solution for this is not to take the advice you get from shady emails or even texts, don’t take the word out of anyone you don’t know because criminals can just disguise themselves as anyone. Don’t try to download software you don’t know. Don’t get into something you don’t know; excellent and successful investors take the time to do their research; this effort will undoubtedly play a crucial role in avoiding scams.
The quickest way to lose everything you have is to invest everything from the start. In every investment, it is recommended to start small to acquire experience. Even marketing and financial advisors recommend not putting all your money in a single investment. Instead, only spend 1-5% of your net pay. In that case, you will not feel discouraged in market crashes. After all, you should not be investing money you can’t afford to lose.
This strategy will enable you to see whether your investment style is working. This is why you should avoid shady trading platforms that suggest you maximise your investment. This is just gambling; investment is not gambling.
Experts say you should keep your crypto investment at 5% or even a lower percentage of your finances. You should remember that you need to find a good trading platform where that gives and helps you have good trade opportunities.
Think Crypto Trades Are Easy Money
There are no easy investments, especially when you want higher profit; it also equates to more effort. You need to consider a lot of things like research before investing and figuring out how trade works, strategizing based on data analysis, and watching the crypto market are just some things you need to know and work out.
Anyone who says it is easy money and will give you lots of profits with you being passive is trying to trick you into a scam and cause you to lose your money.
Strengthening Your Crypto Keyphrase
You must also have a hardware wallet aside from your online wallet to have a better hold of your crypto, even offline. Your keyphrase is the key to this wallet, so it is essential to put effort into keying in random letters and numbers, strengthening your security. Also, always remember your essential phrase because you don’t want to lose the key to your vault. After all, it will mean your hard-earned assets will be irretrievable.
The point is that whatever investment you enter, whether in cryptocurrency trade or not, being cautious and ensuring everything is legit and getting complete control of crucial data will be necessary. Crypto trading will give you the profit gain you want once you do it right with the right trading platform, full knowledge of how trading works, and all necessary computer software all falling in the right place.
Disclaimer & Declaration of Interest
The information, investment views and recommendations in this article are provided for general information purposes only. Nothing in this article should be construed as a solicitation to buy or sell any financial product relating to any companies under discussion or to engage in or refrain from doing so or engaging in any other transaction. Any opinions or comments are made to the best of the knowledge and belief of the writer but no responsibility is accepted for actions based on such opinions or comments. The writer may or may not hold investments in the companies under discussion
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