5 Deadly Sins Of Cryptocurrency Trading
Crypto currency trading is a new space that many are making overnight fortunes , some people woke up millionaire in the previous year 2021. The year was truly a good year for most traders, Bitcoin performed very well hitting the all times high not once not twice but several times in the same year. Bitcoin for some reasons controls the other crypto currencies like the case of Us dollars in the common monetary world. However success in this space which is gaining momentum in Africa lately is over rated. There are mistakes that will greatly cost investments this article will dwell upon other common sins of crypto space.
Thinking crypto is easy money
Many traders thinks that cryptocurrency is the get rich soon scheme of the century, it is wrong because if mishandled it can be the quickest way to loose your money. There’s nothing easy about making money through trading any kind of financial asset and crypto is not an exception.
Buying only because the price is low
Always be on watch if a crash is coming, some coins can experience fall in price because its an abandoned project, buying it will be risk and will make you loose your money. Low prices do not always represents bargain so before you buy make sure you did your home work and your facts are right.
Putting all your eggs in one Basket
People are sometimes advised to invest all their money into crypto, this is a fatal mistake and a bad advice. When investing into coins its a positive speculation of the future nothing more nothing special. If you go very fast then be prepared for a fatal crash what you should do is risk 5% of the capital per adventure so that there is reserve for recovery incase you incur any loses.
Joining pyramid and scam schemes
Its a terrible mistake giving in to Strangers who will either email you, text or WhatsApp telling you about investment opportunities that are too good to be true. They over promise to give you double or triple of your invested capital in matter of just days shun them. Don’t buy it cheap at deflated prices there are normally fake buying and selling orders. In many instances the coins will be fake coins. Do not use just any wallet on the net, The best crypto tips will tell you to stick with big names in crypto wallets, such as Ledger, Exodus or MetaMask.
Losing your cryptocurrency key phrase
If you have a hardware wallet for storing your crypto offline, forgetting your key phrase is like losing the keys to a bank vault. Without your key phrase, all your cryptos will be irretrievable.