If you are reading this article, you are likely a newcomer to this big game. Before you learn about the tips and mistakes in this business, let’s talk a little bit about what cryptocurrency is.
A cryptocurrency is a form of payment that only exists on the Internet. It has no paper expression, and its value does not depend on the government. Unlike other electronic payment systems, cryptocurrency initially appears without the participation of real money. To become the owner of a certain amount of coins, it is enough to connect to the service of their creation, become a member of the unified network of mining, and wait for your “earnings”. This is the key difference between cryptocurrency and real money.
On the Internet, you can find many sites where you can read about digital currencies. ChainBroker is a well-known platform where you can learn more about top crypto funds and projects. Visit it and you won’t regret it!
Top Tips for Crypto Investors
Cryptocurrency is a risk or a game that millions play, but not all win. Knowing some of the secrets, you can save your earnings and maybe even multiply them.
1. Carefully Strategize
You have to have a good understanding of the subject. What is it? How does it work? Which type of altcoin to choose? What platform to use? What risks and advantages await you on this particular platform? What are the conditions of this exchange? Is it profitable to deal with them? All these questions you have to answer before you start mining.
2. Make a Choice
While variety is a good feature in trading, you have to be careful with it in crypto. Altcoins tend to rise and fall at the same level, so you can lose here. Choose one currency for yourself and try to invest only in it the amounts available to you.
3. Be Patient
If you started doing it for profit, you will have to wait. Sometimes prices fall, and at such times it is profitable to buy more currency. But it is not always better to sell when prices go up. In this case, it’s better to pick up the next price spike. Most likely it will be higher and more profitable to cash it in.
4. Save Your Coins Correctly
You have only 2 ways to store your coins: on the exchange itself and in a digital wallet. Unfortunately, the exchange is not the safest custodian of money, there have been many thefts recently. It is preferable to use an online or offline wallet. There are only a few types: Cold, Hot, Paper, Hardware, and Multi-Signature Wallet. All you have to do is read the information about each and choose and take care of the security of the selected wallet.
5. Remember About Fraud
Even if you’ve saved your currency with a good wallet, that doesn’t mean you should relax. The existence of fake brokers and online forums can rob money from everyone. You might get fake coins. Always use trusted and reputable selling sources. Before you sell or buy coins, carefully verify the authenticity of the brokers or fund you want to use.
To summarize the above, before you buy any currency of your choice, you need to check the information carefully. Buying cryptocurrency is always a risk, but it is in your hands to reduce it.
Common Cryptocurrency Mistakes
This is a game in which anyone can make a mistake. Even informed professionals can fall for scammers or make a mistake with their purchases. Beginners should be even more careful when shopping and searching for information. Below you will learn some of the most frequent mistakes when dealing with crypto.
1. Lose a Key or Forget a Key Phrase
Losing a cryptocurrency wallet key is comparable to losing the key to a safe. It cannot be upgraded or a new account created without losing the coins you earned. It’s the same with a passphrase. Forget the keyword – you lose all your savings. So be sure to think through all the details, including where you will store this important information.
2. Nibbling on the Low Price
Low price equals stock and does not always mean you have to take all your money and give it to the broker. Sometimes a low price means that the developers have abandoned the process and you won’t get the profit you want.
3. Short-term thinking
Cryptocurrency should not be practiced if the goal is to get rich quickly. Altcoin prices go up and down all the time, and buying and selling coins quickly can bankrupt you. The best solution is to gather information about funds, buy, invest regularly, and wait. This is the only way you will succeed in this business.
4. Sending Currency to a Wrong Wallet
This is one of the most frequent and careless mistakes of beginners. A wallet address is a set of letters and numbers composed of 20-42 symbols. It is very easy to make a mistake even in one symbol and your coins will go to an unknown wallet or disappear. The only way to avoid this is to copy and paste the address, and not enter it by the symbol.
5. Invest According to Means
Remember that cryptography is a risk. You can gamble all your money and end up with nothing. So think carefully about your strategy and think about the amount you can invest without risking your own pants.
Cryptocurrency excites the mind, but remember that working with it, you have to keep your mind cool.
Cryptocurrency is a game whose outcome is only in your hands. If you follow these tips and try to avoid at least these mistakes, there is a good chance that over time your earnings will grow significantly. So before buying carefully gather information and be patient.