How not to drown in a cryptocurrency sea
Below are the most common mistakes made by beginners in the cryptosphere, as well as some tips on how to fix and avoid them.
1. Thoroughly research the issue
It’s very easy to invest hard-earned fiat money in something that you know almost nothing about. Many rely on the opinions of their friends or generated by a network of experts, which leads to sad results. Before investing, you need to get a clear picture of how the crypto industry works, learn tips for traders and the pros / cons of cryptocurrency.
2. Greed is bad
Many early cryptocurrency proponents became millionaires. This idea inspired many to engage in mining. But today the picture is completely different. Before you make any serious actions in this area, you need to study all the risks associated with equipment and electricity costs, and only then dream of fast and easy millions.
3. Excessive activity only harms
Not everyone can become a trader, although this profession has become very popular in the past year.
You need to stay calm when you are offered to buy or sell everything except real things. You can only make a profit if you have the above qualities. Planning is also very important. Moreover, you never know when the price of a token will rise high, so in the cryptocurrency sphere you need to be able to manage your emotions.
4. Numerous cryptocurrency hacks
Talk about security and privacy. Always keep private keys, because wallets break, exchanges close, and you can lose tens of thousands of dollars.
Another common mistake is sending funds to the wrong cryptocurrency wallet address. Double-check the address of the wallet to which you send funds, make sure that everything is entered correctly. Do not neglect the ability to store passwords, private keys and other important information in the real world if you want to protect yourself. So you can access and restore all the means, even if your computer breaks down, it will be stolen or something else will happen.
Do not ignore two-factor authentication. Without it, you are vulnerable to a wide variety of attacks. Exchanges are an inevitable evil, but two-factor authentication cannot be forgotten. This technology ensures the security of your account. Also, store the codes in the real world so that no one can get data from your account if something terrible happens.
5. FOMO factor — the worst sin
Big and evil monster. Many stories of overrated and unexpected success have a huge impact on people. Such a problem exists not only in the crypto industry. Fear of missing the opportunity (The Fear of Missing Out — FOMO) can make you make hasty actions / decisions. Accept the fact that while you are missing out on some opportunities, you are clutching at so many others. Moreover, you cannot take advantage of all the opportunities in the world.
This short article outlines the most common mistakes made by beginners who are just getting to know the cryptocurrency world. Remember them, this will allow you to avoid them in the future. I hope that these tips will help you in working with cryptocurrencies.
Pi Capital Union