The Bitcoin price has returned to the public’s interest with the increase of more than 200% this year. Google searches for Bitcoin are on the rise, which means the market is preparing for a new wave of newcomers.
To help newcomers to the crypto market to avoid classic beginners’ mistakes, there are some tips to follow.
What to do!
Educate yourself about Cryptomones before investing
Before you buy any token or cryptomon, do a thorough research of what you plan to buy. Follow the “do not invest in what you do not understand” rule.
It is essential to educate yourself about how blockchain and cryptomonas work, as well as the differences between the most popular digital assets. In this way, you will understand the current value and future potential of each coin and token that will draw your attention.
Use exchange with good reputation
There are several ways to purchase cryptomonades. Once you know what assets you want to buy, it’s important to trade only on secure and reputable platforms.
There are hundreds of shifts of Bitcoin and Cryptomones, but they are not all regulated. Many exchange platforms do not offer too much transparency about how they manage funds or how they deal with their IT security. Using small exchanges can result in unexpected loss of funds due to an operational error, hacking or a scam. Unfortunately, all of these things have happened in the past, which is a powerful argument for using reputable platforms. Generally, they provide the return of user funds in case of incidents.
Safely store the cryptomonas
Once you have purchased Bitcoin or other types of cryptomones, it is advisable to keep them in a secure personal wallet. There is a wide range of wallets to choose from. Hardware wallets such as Ledger, Safe, KeepKey and BitLox are generally considered the safest for long-term investors.
Invest just how much you can afford to lose
It is also important to keep in mind that when it comes to investing in cryptomonas, you should not invest more than you can afford to lose.
The Bitcoin price is rising and many experts believe we will see above-previous levels earlier than later. The reality is that bitcoin is a volatile asset that can easily lose 50% of its value over a short period of time. Therefore, make sure that the cryptomonas performance will not significantly affect your revenue.
What not to do!
Do not let the volatility scare you
Bitcoin and cryptomonas are volatile investments. The price may oscillate by ten percent in just one day or even a few hours. As an investor in criptomonades, you have to keep your blood cold. If volatility causes you nervousness, choose to invest in the long run and do not check the value of your digital asset portfolio daily.
Do not leave your funds on the exchange platforms
Crypto exchange hacking is still common, unfortunately. Even one of the market leaders, Binance, has been the victim of such a recent attack. If your platform is compromised and your funds are affected, it may take weeks to recover. In some cases, they may not be recovered at all.
Therefore, it is advisable to transfer the cryptomonas into your personal wallet as soon as you have executed the transactions.
Do not listen to the media about Bitcoin
The mainstream media claimed that Bitcoin had died more than 300 times. At the same time, the Bitcoin topic is often approached when the price is rising because it determines opinions and clicks from interested investors.
In general, you have to be very cautious about the media when it comes to any kind of financial advice. The same is true for investments in bitcoin and other cryptomonas. Choose the sources of information carefully because the space is known for unprofessional reporting, prejudices and paid articles.
Newcomers to the crypto market have to pay attention to scams and pump and dumps
Unfortunately, with the Bitcoin price rise, scammers are also back on the market. When it comes to scams, the golden rule is: “If it seems too good to be true, it probably is.” Avoid investment projects that seem like Ponzi schemes.
Also pump and dump schemes are quite popular but very risky. They typically include small-market token and are popularized on dedicated groups. Although it may seem like an attractive way to make money quickly, you risk losing all the money you invest.
Do not be fooled by @bitcoin
Twitter’s prominent Twitter @ bitcoin account, which has over 950,000 followers, does not really have a connection with Bitcoin. This is an account that promotes Bitcoin Cash (BCH), just like the Bitcoin.com site. Newcomers can be tricked to buy this altcoon without realizing it.
Do not search for “the next Bitcoin”
Newcomers to the crypto market make a very common mistake, to try to find the “next Bitcoin.” There are many crypto projects claiming to be the next Bitcoin in a fraudulent attempt to attract newcomers to buy. There is only one Bitcoin and its importance cannot be denied.