Common Mistakes in Crypto

Cryptocurrency is the new rave but how many people know about the risks and common mistakes involved? We will look at them in this article and also proffer ways of avoiding the mistakes.

1. Investing without adequate knowledge of how the business is done. It is important to research every crypto that you want to buy.

2. Failing to take their cryptocurrency business with the same seriousness as they would other businesses like industries or real estate business.

3. Failing to carry out proper research on the cryptocurrency they wish to invest in.

4. Failing to diversify their investment and investing only in just one coin or token.

5. Having a wallet that they do not have control of its seed words and private keys.

6. Not securing their seed words and private keys properly.

7. Leaving your cryptocurrency in exchanges might cause you to lose money when the exchanges fold.

8. Going with cryptocurrency pumps out of Fear Of Missing Out (FOMO)

9. Not reaching a legal agreement before handing over their funds to the trust of a third party.

10. Signing into cryptocurrency doubling groups, Ponzi, and pyramid schemes.

11. Leaving a trade position quite late or too early. You'll need to master the psychology of trading.

12. Not being mindful of transaction fees. Many newbies have lost a huge part of their investment this way.

How Best to invest in cryptocurrencies?

1. You must gain all the necessary knowledge so that you can manage your business by yourself without trusting your funds to a third party. You may not be able to enjoy the full benefit of the business when you allow someone else to manage the business for you. Ensure to sign an agreement in case you choose to have someone trade for you.

2. Only invest in projects you know of. Carrying out adequate research will help you not fall into scams. You'd have to cover different areas while carrying out the research, areas such as token supplies, token release, token economics, teams, project development, community engagement, etc.

3. Ensure to make use of trusted exchanges for trading. Avoid using questionable exchanges so you don't lose your funds.

4. Engage in different projects by diversifying your portfolio. Invest in low cap and high cap projects.

5. Withdraw your profits at intervals. Ensure to have a considerate profit margin. You can store the profits as stable USD coins (PAX, USDC BUSD) if you intend to retain the dollar value. You can also choose to store in bitcoin just in case you wish to retain the Bitcoin value.

6. You might be tempted to go into a trade when the price is going up, try to avoid such an urge as you might end up losing money to those who got into the trade before you.

7.Ensure you make plans on how you'd transfer the cryptocurrencies to an heir in the event of death. So many persons had their huge cryptocurrency investments trapped after their death. You should inform someone of your seed words or private keys so that your funds are not locked up forever. You may choose to write and seal your seed words and keep them safely in the bank. You may be asked to pay some annual charge by the bank while you have sole access to the key. It is best the heir is aware of the existence of that asset and it is safe.

8. Always consider the transaction fee before every transaction

For the complete tutorial on how to research and invest in cryptocurrencies with huge potential, visit https://cryptoginger.com/how-to-research-and-invest-in-cryptocurrency/