crypto trading

5 Common Cryptocurrency Sending Mistakes & How to Avoid Them

Cryptocurrency trading tends to be hard for most novices, and even experienced investors make mistakes sometimes. Buying and selling cryptocurrencies may look like an easy task, but if you are not cautious, there is a high chance that you might lose your crypto coins. As cryptocurrencies are digital currencies, it is nearly difficult to obtain them back if you lose them.

Before sending or trading the cryptocurrency, it is better to do proper research and know more about the crypto and its risks. There are several mistakes that people often make while exchanging cryptocurrency. A few errors lead to a great money loss, and you can avoid the common mistakes by understanding them. If you are a beginner and plan to start crypto trading, make sure to click here.

What Are The 5 Common Mistakes Investors Make While Sending Cryptocurrency?

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As appealing as it might seem, the cryptocurrency world is risky if you do not have the proper knowledge. Below we will tell you about the 5 general mistakes investors make while trading cryptocurrency. In addition to that, we will also advise you on how to avoid them.

1. Sending to the wrong crypto address

Here is one of the most common mistakes that investors make while trading cryptocurrency. Sometimes, people accidentally tend to send crypto to the wrong wallet address. If you entered the wrong inputs in your transaction, it might lead to losing funds forever. Plus, Sending ETH crypto to a BTC address or vice versa will result in a permanent loss of your cryptocurrency.

Remember, if you have started a cryptocurrency transaction, it is impossible to cancel or reverse it. When you transfer funds to the wrong account, you need to contact the account owner to call for a refund. If you do not know the owner of the address, there is nothing you can do to obtain your crypto.

In order to avoid this mistake, make sure to triple-check the address, other input and examine these details with the recipient’s address.

Source:medium.com

2. Losing the keys

Recent reports reveal that investors lost nearly 4 million Bitcoins because of common errors, and losing keys is also one of them. The crypto keys are simply the one aspect that can verify your ownership of your crypto assets. If you have lost or forgotten your private keys, you will be locked out of your account and can not get access to your investments. Though you can ask for a fresh password or PIN from the bank or different service providers, the blockchain does not have any customer service.

As of January 2021, around 3.7 million Bitcoin is lost and can not be retrieved forever. You need to store your private keys or your password securely to avoid this kind of error.

3. Storing crypto coins in uncertain wallets

Source:investmentu.com

Selecting a safe digital wallet to keep your crypto coins is of utmost importance. Presently, there are plenty of crypto wallets, so it is crucial to opt for trustworthy, secured, and reliable wallets in your location. Several beginners assume that their crypto coins are safe and can be accused anytime if they are placed in an online wallet. However, online wallets are the easiest prey for hackers, so storing all your funds in an online wallet is never a good idea.

Make sure to select a non-custodial wallet or custodial wallet based on your preferences. If you have a non-custodial or self-custody wallet, you are solely responsible for your crypto assets and private keys. Hence, if you forget or miss your private keys, there is no way to open your crypto account. Having a custodial wallet means that third parties are responsible for your private keys. But, hackers can transfer your crypto coins from your account without any private keys because the third party controls the keys.

You can store some of your crypto coins in an offline wallet to keep them secured to avoid losing due to cyber attacks.

4. Not maintaining offline hard copies of crucial data (keys)

The private crypto keys are not one or two-digit numbers to remember easily. They are long-winded and complicated to memorize. Some of you might write the password in Notepad, Google Docs, or a Word doc and store that on your PC. But, what will you do when your PC is damaged?

You must keep offline private keys in printed documents and store them in numerous safe and hidden places. Hence, if you lost one copy, you can get the backup doc from another location. Consider maintaining several hard copies of crucial information related to your crypto coins.

5. Making crypto trading based on emotions

Source:dnaindia.com

While trading cryptocurrency, you will often come across acronyms such as HODL, FUD, and FOMO. They depict some sort of technique but are emotion-driven simultaneously.

Firstly, HODL indicates sticking to your crypto assets despite the instability in the market. Sometimes, you would not get any profit even if you wait for a long time, so that is when you have to trade those assets. A few investors follow the existing trend to trade cryptocurrency due to fear of missing out (FOMO). But, it is risky as there is a high chance of users falling into fake proposals and scams. FUD means Fear, Uncertainty, and Doubt. The users under the trance of FUD will prohibit themselves from trading in crypto despite the good research stats and profitable market value.

You should never do crypto trading relying on your emotions. Make sure to check the market stats and regular data before sending or buying cryptocurrency.

Source:analyticsinsight.net

Bottom Line

After thorough research and careful testing, we found the common mistakes people make while sending cryptocurrency. Besides that, we also made a list of those mistakes along with brief information about how to avoid these top 5 common mistakes. It is crucial to be aware of these errors so you can send and trade cryptocurrencies without much difficulty or any loss.

Most beginners and entry-level investors tend to make these errors. Now you are familiar with the common mistakes people make in the crypto world, so make sure not to repeat these blunders. Having this awareness reduces the time you need to spend on researching and also lessens the risk of crypto loss.

Crypto Trading Guide For Beginners: How To Get Started

Cryptocurrencies are the hottest asset class in finance and are disrupting industries like banking, cross border payments, credit cards, and more. DeFi is even doing away with traditional lending and borrowing, all without lengthy credit checks and other limiting factors.

The only problem with crypto is that the asset class is generally still more speculative today than a technology with widespread adoption or usage. Adoption is spreading, but for now, trading crypto is the better alternative to investing, which can leave holders susceptible to bear markets and dangerous downtrends.

Cryptocurrency as a technology can be confusing, and investing challenging – which is why trading can also be difficult without the right education or practice. This guide offers one half of the equation, providing extensive tips on how to get started trading cryptocurrency if you are a beginner.

Investing Versus Trading Crypto

Source:fxopen.blog

First, we will break down the differences between investing versus trading crypto.

Investing in crypto is something anyone can do and takes very little effort or skill. It simply involves buying crypto assets and holding them for the long term. This type of investor is often encouraged to HODL – hold on for dear life – due to how volatile cryptocurrencies like Bitcoin can be.

The alternative to always holding, is to sell these assets, which to be profitable must be sold higher than the initial purchase price. This can be challenging to time so the guidance instead is to HODL and to forget about selling altogether. But that’s no way to secure returns.

Trading instead offers a way to make money whichever way the market direction turns, all without having to be exposed to the underlying asset itself. Trading lets people speculate instead and trade derivatives contracts that focus on the price of the underlying crypto asset.

Even if trading accounts rely on crypto as a base currency, in cases like this stablecoins can provide a base currency that lacks volatility and lets users trade CFDs. Meanwhile, there is no such thing as investing in stablecoins, as they do not increase in value like Bitcoin or other altcoins do.

Why Trade Crypto CFDs Over HODL

Source:trading-education.com

CFDs stand for contracts for difference. The way these derivatives contracts work is that the buyer and seller agree to settle the contract at the difference in underlying asset price from the time the contract is opened until it is closed.

For example, opening a short position on BTCUSD when Bitcoin was trading at around $60,000 and then closing it at $30,000, would result in a price difference and profit of $30,000. CFDs are typically traded on margin, which allow for profits to be amplified further with leverage.

Trading crypto CFDs on leverage over holding is an obvious choice for those seeking the fastest capital growth. Bitcoin price rallies every four years with each halving, and during that short period, it makes a great investment. All other times, the cryptocurrency spends consolidating or in a bear market, where investors have to wait another four years for ROI to return.

With CFDs, crypto traders can go long or short Bitcoin and other altcoins with each peak and trough, keeping profits flowing all throughout. There’s a reason why trading platforms increase in notoriety in bear markets, while crypto exchanges do well during bull markets.

CFDs also let traders get in and get out of positions quickly, rather than HODLing and waiting for another parabolic impulse wave and crypto market cycle.

How To Begin Trading Crypto

Source:daytrading.com

To begin trading crypto, it is wise to start with the basics of learning technical analysis, such as finding support and resistance, and understanding crypto price charts.

From there, a trader can learn chart patterns, candlesticks, and technical indicators. Common indicators include the Bollinger Bands, Ichimoku, Parabolic SAR, and many more. These tools can tell a trader when to go long or go short, as well as where to place stop loss orders.

Learning how to spot trends is the next critical piece of the puzzle, as well as learning risk management strategies. Combining all of this means you’re ready to try your hands at markets, but still need to find a reliable trading platform.

Platforms such as PrimeXBT, an award-winning margin trading platform, offer built-in technical analysis software, long and short positions and more than 50 CFDs under one roof. However, there are several brokers that offer CFDs so it is wise to research other available platforms and compare features.

Trading requires even more than just knowledge of markets. Trading requires a strong emotional and mental state, and an ultra sharp mind. The best traders also must force themselves to take bold positions even when others are fearful, or when the market is at its greediest. Reading sentiment and following the news cycle is also a critical factor in becoming successful.

Finally, fundamental analysis in crypto is unlike any other area of finance. There are no revenue reports or quarterly company results to share. Instead, fundamental analysis around Bitcoin and other cryptocurrencies looks at how active wallets are, how much BTC they hold, or how much BTC is left on exchanges. Using this data to track the movement of coins is nearly as important as technical analysis.

Relying on the bevy of skills and tools above, anyone can find success in markets with time, patience, and a steady hand.

Conclusion On Crypto Trading For Beginners

Source:stopthebreaks.com

Each crypto trader is unique, and therefore there is no perfect way to get started for everyone. Investing carries less risk than trading, and derivatives can further increase risk and profitability with leverage. How much risk you are willing to take on or how much profit you are after will determine how much capital to put into each position. Remember, never invest or trade with more size than you can comfortably afford to lose, and be sure to do additional research on which broker to use and keep learning as you go. That concludes our guide to trading cryptocurrency for beginners – you are now ready to try crypto trading on your own.

Тop 9 Bitcoin Trading Errors made by Beginners – 2021 Guide

The crypto market is different than any other you already know, and it’s run by different rules. So, if you have knowledge in financial management, accounting, banking, software development, and so on – it’s not valuable in the crypto market, and can easily lead you to make some mistakes, that the blockchain will never forgive you. The beginners have more chances to make these mistakes, because they are inexperienced, and they may join unverified trading platforms, that seem like they have the best offers and conditions initially.

Choosing a reliable trader is the first step every beginner should consider immediately. It’s worth checking https://bitqh.app/, to see if it’s allowed in your country, and if it is, then you can proceed to create your account, and start trading. But, you can’t do that today, especially if it’s your first time. Before you take any step, let’s see which are the most common and most dangerous mistakes a beginner trader can make:

1. Not estimating the possible risks

Source:hackernoon.com

You can’t jump into investing real money before you learn how things are done. Crypto trading is very different than the traditional offering and getting what you want. Many beginners consider it as a type of gambling, and that’s completely wrong, and can lead to catastrophe. Experienced traders will recommend paper trading first until you feel completely prepared to become a part of that market. Underestimating the risks is a huge problem, especially when the trader is too confident, and thinks he/she can do anything. But, continuous losing huge amounts of money is a big error, and maybe the top mistake every beginner will make. If you lose some amount of money while trading, you have to take a break and get back when you are ready for that.

2. Not calculating the profit/loss ratio

What’s the purpose of getting $1,000 if you’ve lost $5,000 before? This is a negative profit/loss ratio, and it’s surely not good for your trading career. You should check this ratio regularly, so you can estimate if there is a real gain, or you are just having fun being at zero-value all the time. Don’t miss doing this, even when you gain more experience, and you make real money from your trading activities.

3. Not studying the market on your own

You have to do this. No exceptions. Studying a risky market like this must be your priority, and never skip to read a lot of literature, blogs, forums, and social media posts related to this topic. You can’t get the idea to become a trader today, and go for it tomorrow – it’s impossible, just like you can’t become a doctor or engineer without years of dedicated studying. It’s the same about Bitcoins, and if you don’t manage to learn everything that is important about it, you will lose a lot of money, and you will be unable to manage and handle the whole situation.

Source:admiralmarkets.com

4. Investing more than you can afford

The point isn’t to be poor after a few tries. The art of successful trade performance is to be responsible with your money and spend the amounts you can afford. Don’t take loans and credits, because that loop is endless, and it can lead you to more mistakes.

5. Getting too excited and emotional

If you have success on the first try, it can make you too excited about trading, and sometimes the emotions can be pretty overwhelming for you. In many cases, they won’t let you see the risks behind your activities, and that’s why we recommend staying calm and patient, so you can do the things as they have to be done, without any fatal risks.

6. Not having a trading journal

This is so traditional, and it may seem outdated, but it’s the best way to keep track of what you are doing, and how you behave on the network all this time. Write down every mistake, every risk you detected, and try to see the things that lead to a big loss. Keep a record of everything you are doing, so you can improve your strategy for the next time.

7. You follow trading patterns

There is no pattern that should be blindly followed, and as soon as you realize that, you will be able to boost the strategy and performance. It’s always good to explore the market and see the indicators, analyze the charts, and make decisions based on the past, but the current situation is good to track too. Combine a few different approaches, and don’t make big steps, until you are sure what will work the best for you.

8. You don’t have a plan

You need to have a few plans, just in case. Beginners usually fail to create the plan, until they realize they really need it, so they can know what they are doing at any moment. But, some plans can fail at the first moment, and that’s why you need to have a few of them, so you can fix the small mistakes immediately, and then move to the next step.

9. Using margin trading

Source:businessinsider.com

This is a big no-no at the beginning. That means you borrow the money you don’t have so you can stay active on the trading network. Maybe you will get a profit, but you will anyway have to get back a significant amount of money to the person or company that gave them to you. So, if you don’t need it, don’t get into margin trading.

As you can see – it’s not too complicated to get to know the trading market better, but at the same time, it’s not the simplest thing you will meet in your life. You must calculate all the potential risks when you starting a business like this. You can even go for safe trades until you gain enough experience to fight against the “beasts”. But, never forget that the whole concept of cryptocurrencies is virtual and as it grows the value every day, it’s quite possible to be ruined over the night. So, be careful, and always have a plan for what to do next.

How to Choose a Crypto Exchange in 5 Easy Steps

Becoming a good crypto investor or trader is not an easy task. The entire industry is complex, and it requires in-depth analysis. It is not the point to invest in Bitcoin just because its price is jumping. Despite that, counting only on luck is another mistake people make. Luck does not have anything in common with crypto success.

There are three things people should have in mind before they start their journey. The first one is to get familiar with all cryptos that exist in the world and analyze their features. Despite that, people should check out which available tools can improve their performances. Some tools use reliable algorithms and provide the users with useful analytics. If that seems like a good option for you, we recommend you click here. It is an example of a trading app that you should use in the future. In that way, you will manage to improve your performances and develop crypto trading strategies.

The third thing may be the essential one. People need to choose the digital currency exchange that will meet their requirements. Indeed, there are many of them online that look similar or identical. However, it would be unfair to say they all provide the same quality of services. That is the reason why we would like to analyze how to choose a crypto exchange. The good news is that people need to go through only a few stages to reach their goals. Let’s find out those stages together!

Determine the Right Type of Crypto Exchange

Source:observer.com

There is no just one type of exchange people can find in the market. The first option people have is peer-to-peer exchanges. This type of exchange is an excellent option for those that are looking for privacy. However, in that case, each individual is responsible for his security and the security of his funds. In some cases, it may happen the platform will act as an arbitrator when the cases of disputes occur. However, that is the only thing they do.

On the other hand, full trading platforms are some king of the virtual real estate market. They connect a big number of people that exchange the platforms among themselves. The platform itself offers some specific services such as customizable graphs, margin trading, etc. However, beginners often do not need these features at all.

The third type available to people is brokerage exchanges. These exchanges allow people to sell and buy digital currencies directly from the platform. In most cases, people will need to provide private data to verify their accounts.

Check the Functionality of Exchange

It doesn’t matter how experienced you are. The first thing people need to check if the exchange can complete the transaction they want to make. There is not a universal way of how platforms support the combination of fiat and cryptocurrencies. Some of them do not operate in certain geographical areas. An interesting example of that is some US exchanges that won’t accept transactions from all the states. Because of that, it is better to find out that before starting your journey.

Check the Fees

Fees are different from one place to another. Different fees are good only for a specific type of trader. For instance, let’s imagine that you are a day trader. In that case, you would not want to choose an exchange that comes with high individual transaction fees.

On the other hand, the fees are not going to be the same for deposits and transactions. In some cases, the deposit fees may be low while the transaction fees may be high. Because of that, people should check them all before they make the final decision.

Check the Security

Source:besticoforyou.com

Exchanges ensure that all the transactions are completed quickly. That is probably one of the reasons why digital currencies have experienced popularity growth. However, that also means people should only choose the exchanges that have a high level of security. This part deserves in-depth analysis. Because of that, we would like to highlight all the things people should have in mind.

First of all, the way how people access account needs to be safe. The best exchanges often provide a 2-factor authentication feature. They do that for all the accounts that use their services. Of course, if you decide on an exchange that does not require an account or wallet, that feature becomes irrelevant.

Another factor you should put into consideration is insurance. Indeed, the security of all exchanges is becoming stronger and stronger almost every day. However, thanks to their popularity growth, they become an attractive target for many hackers over time. That is the reason why you need to be sure which types of insurance you have over your funds.

For instance, most professional exchanges carefully follow the regulation of their government. Because of that, they will manage to expand the government-backed deposit insurance to the fiat accounts of their customers. Some exchanges use 3rd party insurance and offer it to their customers. However, something like that people will rarely find.

Check the Reputation of the Exchange

Source:paybito.com

Let’s imagine that you found an exchange that meets your requirements and expectations. The next thing you would probably want to find is social proof that your decision is good. People often use Google to gather some valuable pieces of information. That is the reason why they should check the reputation of the exchange they plan to pick.

There are two options that people have. One place they can gather some pieces of information is mainstream media. On the other hand, they can also visit websites that review all the exchanges. These websites often remain objective until the very end. Because of that, they share pieces of information that can help people make good decisions.

Yet, every individual needs to ensure he is using a reliable source of information. Businesses around the world use different methods to hurt the reputation of their competitors. Because of that, people need to be sure the information they read is not fake. Fake news can only confuse them even more. They can make a bad decision and make a costly mistake later.

Bitcoin Price Prediction In 2021

If you’ve been in the cryptocurrency market for a while, you probably know that the most popular virtual coin is BTC or Bitcoin. Also, you probably know that this cryptocurrency is the most valuable and has had the highest recorded value almost two years ago, in December of 2017 when you could sell one BTC for $19,783. Since then, Bitcoin has been on the decline, with the lowest value in the past two years recorded in early 2019.

Img Source: financenews.tv

However, it is noted that the value of this cryptocurrency is returning to a high level, which may be an indication that next year will be very important when it comes to BTC. A lot of experts have expressed their opinion on the rise and fall of Bitcoin in 2021, so at the moment it is quite interesting and uncertain how things will look like in the future. While no one can predict with certainty, there are some patterns that have been repeated over the years regarding Bitcoin. If you are trading this cryptocurrency, the best solution is to use the detailed statistics and help provided by experts on sites like Profit-Revolution.com. This site is specialized in cryptocurrency trading and helps users to better understand market trends and invest more securely. However, currently, the most important question is what is the forecast for the price of Bitcoin in 2021? Well, keep reading and check the opinions of trade and finance experts.

News on the BTC market that may affect the price

Img Source: bitcoinist.com

Just over a month ago, on September 23, 2019, the long-awaited platform called Bakkt was officially launched, intended to bring a new revolution in the virtual coin’s market. It should provide security and transparency in the BTC business for all institutional and merchant investors. This means that Bitcoin would be more implemented in the traditional financial system and payment methods, and thus return the value closer to the highest recorded.

In addition, the technologies used by BTC can significantly affect the adoption of this cryptocurrency as a widespread and official payment method. For example, currently, the most widespread payment system is Visa. The main advantage is the speed and low cost of transfers. Bitcoin, on the other hand, is lagging behind traditional payment systems when it comes to these features. This could be changed using Lightning Network technology, which is in the process of development and should significantly shorten the time for BTC payments.

Img Source: bitcoinist.com

The price of BTC next year can be significantly affected by Bitcoin block halving. Miners are known to receive a reward for their work. They receive 50 BTC for each mined block. However, the reward is reduced in half to every 210,000 blocks. This means that the next halving will occur during May 2021 and that then the value of one block will be 6.25 BTC. This simply means that demand will at some point be higher than supply and that BTC value will increase.

All of these things can significantly make 2021 perhaps the most important year for all cryptocurrency traders, especially those trading in Bitcoin. Although the current price is below $9500 at the time of writing, this doesn’t mean that the price will fall even lower, but rather that this is a good time to buy extra BTC. This investment may pay off in the coming months because according to expert analysis, Bitcoin is expected to reach perhaps the highest value ever recorded in 2021. Therefore, think carefully and make smart moves.

Cheap vs Expensive Cryptocurrencies – Which One is better For Investing

The world is changing rapidly every day. Every day there is a trend or a novelty that people like very much and easily accept. No matter what category the novelty belongs to, in the first moments of its publication it was well analyzed and then accepted without much skepticism. The novelty can be in terms of technology, some economic step, some easier way of functioning, and so on. Gone are the days when people were very skeptical about new things and needed much more time to accept them. Today, they easily get the information they want to know about the novelty and easily get it, according to which they later decide whether they like the novelty or not.

The news is especially present now in the pandemic. Apart from the novelties, there is also the actualization or intensified return to the stage of some novelties that have been a hit in the past years or in some more distant times. For example, while we were sitting at home, we went back to the old photos and looked at them, we went back to the board games we used to play online, we went back to reading books even though we used to read them online, online payments, online transfers and of course, the most prominent investments. In this period, the most popular investments were the investments in cryptocurrencies, one of the novelties that returned to the big door.

Although 11 years ago these types of currencies were not so well accepted, they still developed and were accepted over the years. It started with only one currency, Bitcoin, which from the very beginning proved to be a very good option. Today, this trend is returning as even more accepted and is often the first option for anyone who wants to make an investment that they know is right. There are over 30 different types of currencies that are successful, but there is a dilemma that everyone who wants to make an investment thinks in their head. Which is better, more expensive, or cheaper cryptocurrency? What is the difference? What if I buy some of the cheaper but successful currencies? We will clarify all these dilemmas today, as we discuss which is a better option, to invest in cheaper or more expensive crypto. Stay with us until the end of this article because we have the answers in it.

Are cryptocurrencies the best investment option?

Source:masterthecrypto.com

Anyone who wants to invest in something The first thing they do is consult with someone who has already invested. And of course, whoever you ask will tell you that stocks are a great option, that there is nothing better than securities, that investing in real estate is a complete hit because one of these options is exactly his choice and therefore he is satisfied. You need a detailed analysis. For example, if you want a profit on an annual basis at the same time every year you will invest in stocks, if you want a monthly symbolic profit you will invest in real estate, and if you want uncertainty, management, monitoring, and profit according to what you do according to skill then the best cryptocurrencies are an option. So prepare well before you invest, read, follow related content and we are sure you will succeed with this investment if you make it.

Cheap vs. expensive cryptocurrencies – what is the best option?

Source:planetcompliance.com

The next thing that investors who are already determined for cryptocurrencies are hesitant about is whether to opt for a cheap or expensive cryptocurrency option. Each of them has its own progress but also its own downfalls. Therefore, prior research is required to select a specific currency. The research should be based on your periodic monitoring of the currency exchange, your monitoring of the impressions of those who have already invested in expensive and cheap currencies, and of course to check which is the biggest and most popular at the moment and which is the cheapest. But keep in mind that the most popular and most expensive cryptocurrency at the moment is Bitcoin, which may be expensive, but offers conditions for a great profit and registers daily growth in stock markets. While on the other hand there are many other smaller and cheaper coins that are relatively new, grow and make a profit, but are not so stable and can easily fail, say from this website which has been dealing with analysis and monitoring for many years. currencies, their ups and downs, and the prices they have had over the years. For this reason, it is good to first make a detailed analysis, to look at how things are, to see the situation with the most expensive coin and the cheapest coins, and finally to make a decision based on all that data.

What does it take to make a successful start with crypto trading?

Source:medium.com

Once you have decided on a successful currency, you need to prepare for a successful start with trading. For a successful start, you need to do everything a beginner does. You need to first select a page or application through which you will perform all trading and tracking in a safe way without any doubt about the authenticity and security of the site or application. Next, choose an electronic wallet where you will keep your coins. Choose one of those that are intended for beginners, because they are the easiest and safest for you. The next step is to decide which mining hardware will serve you in the near future. Find all the hardware that exists for home use and choose the one that will provide you with the best service with its configuration. And at the very end, you need to make a map according to which you will orient yourself to follow the movements of the currency, the news about the currency, and all other events that could happen and affect the success of the currency on the stock exchange. This will allow you to quickly learn and make a successful start as a new trader.

You are now ready for your next investment. Now you know what is right for you as a beginner and how to act. The steps are simple, and even better when you have someone to tell you and guide you. Once you have all this information you are ready for your new beginning – starting as a new crypto trader. Good luck!

What to Consider Before Investing in Cryptocurrency

Crypto trading is getting more and more popular, especially when Bitcoin and other cryptocurrencies are reaching astronomical prices. Experts predict that the value of cryptocurrencies will continue to rise, which is why many people decide to start investing in some of the best performing digital currencies.

Even though cryptocurrencies have been around for a long period of time, people still don’t know the process well enough in order to make a safe investment. Whether you want to buy cryptocurrencies for trading or as a form of investment, you need to take some things into consideration.

In today’s article, we will highlight some of the things that you should pay attention to before you enter this vast crypto market.

Research is Crucial

Source:101blockchains.com

In order to come up with an investment plan for cryptocurrencies, you need to do a lot of research on your own. Reading about cryptocurrencies will help you understand the market, understand what is blockchain, and all the security measures you need to take to make the process much safer.

Since we are talking about a market that is still upgrading, you need to update your knowledge and follow new information about crypto every day. If you know something to be true a couple of months ago the information might be outdated and wrong now.

If you follow Warren Buffet, you must know one of his most popular quotes “Never invest in something you don’t understand”. This strategy applies to every investment in your life. Without having a full understanding of what you are getting into, you run with a bigger risk of losing your money.

Don’t Focus only on Bitcoin

Source:bloco1.com

Once you understand the process behind cryptocurrencies it is time to get your hands dirty. Most people focus only on the biggest cryptocurrency “Bitcoin” which isn’t necessarily bad, but there are many other cryptocurrencies that can turn out to be a good investment.

Also, other cryptocurrencies are much cheaper than “Bitcoin” which is better for people that don’t have a significant budget for investing. Also, the price of other cryptocurrencies can spike up which can multiply your investment many times.

Better Safe than Sorry

You have to understand that you are getting into a market that is full of scams, hacks, impostors and fraudsters, and phishing attacks. It is crucial that you take all the necessary safety precautions just so you can make the process much safer. It only takes a few seconds to lose something that you’ve worked for many years.

You need to be careful when you are entering your passwords and private keys from your wallets, avoid public networks, especially when you are transferring money to accounts. There are thousands of scam exchanging websites that can take all your cryptocurrencies from your wallet.

So, make sure you double-check the URL and research the website before entering any sensitive information.

Invest Only What You Can Afford to Lose

Source:hackernoon.com

We keep hearing that crypto investing is a profitable option, but nobody reads the “Terms and Conditions” that come with such actions. Whether you invest in cryptocurrencies or start trading with stocks, you need to balance your portfolio and only invest what you can afford to lose.

Even though cryptocurrencies are rising at the moment, nobody knows what can happen to this market in the future. There are many examples where people lost all their savings and had taken loans for investing.

In other words, you need to create a risk management plan and make sure you stick to it no matter what. Investing in cryptocurrencies might be tempting, especially when we see how some of the currencies reached astronomical values.

Learn How to Track Your Funds

Managing your crypto portfolio is crucial. Unlike stock exchanges, you need to create multiple accounts on different websites that offer cryptocurrency trading. It is important to understand that different websites support different cryptocurrencies.

Also, many people do the same mistake of keeping their cryptocurrencies on the platform they trade. For example, if you choose to buy bitcoin or ethereum on some trading website, it is important that you transfer your funds to an external wallet. The reason behind this action is because trading platforms are prone to hacker attacks every day. There are many people who lost all of their money after such attacks and an external wallet is a much safer option.

This means that you have to find a good crypto wallet that keeps your funds safe. There are many apps that offer great features when it comes to crypto wallets.

One of the best options is Tezro, which is an all-in-one application that has multiple chat applications that combines all things into one. This means that you’ll no longer need multiple crypto wallets that are costly and hard to track.

Join Crypto Trading Communities

If you are new to crypto trading it is best if you have some sort of guidance before you start trading. There are many crypto trading communities on social media platforms where you can find very useful information that will help you sharpen your trading skills.

There are many Facebook and telegram groups where people with tons of experience and give feedback on the market and provide great crypto trading tips that can be helpful. Make sure that you double-check the information and don’t jump into investments if someone says it is a good idea.

Even though such information can be helpful, it doesn’t mean that you should follow everyone’s advice.

Source:bct.io

Final Words

These are some of the things that aren’t usually mentioned when you start trading. Since you are entering mudded waters, you need to take things slowly and do a lot of research before coming to conclusions.

Crypto trading can turn out to be a profitable investment, especially after we saw the price increase on the bitcoin last year. The value of one bitcoin increased from $8,000 to $39,500 just in one year.

Nobody knows what will happen in the future but experts predict that the price of Bitcoin can reach up to $300K which means that it is a good idea to invest in cryptocurrencies.

5 Mistakes All Crypto Owners and Traders Should Avoid – 2021 Guide

Probably the most common topic spoke on the internet portals lately are the cryptocurrency and the predictions for the future of this market. As we are globally heading towards the recession, due to the pandemic of covid-19, more people are thinking of investing in crypto. Mostly because the mining process is being simplified by the appearance of the new cloud hashing possibilities, and the rise of mobile mining. Aside from mining, a possibility to trade this virtual currency on many of the platforms available both on computers and smartphones is quite convenient. You are even able to exchange your digital currency for fiat currency in a matter of minutes in countless of exchange offices, and even on ATM’s.

These digital assets have been breaking records in millions that were invested in them by different people. This all sounds very promising, but owning and trading is not that simple. It requires a fair amount of knowledge and experience if you plan to earn money. A lot of good quality information and reviews about different cryptocurrencies and the market can be found on Kryptomoney.com. In this guide, we provide you with the 5 mistakes all crypto owners and traders should avoid.

1. Not arming themselves with knowledge

Source:quantnews.com

The first and biggest beginner mistake owners and/or traders make is a bad understanding of the market and trading itself. Beginners often think that it is enough to have a good trading strategy. However, this is the reason they almost always lose money. We can compare this to trying to start a company in a sector you know very little about. But you are eager to invest just because everyone else is doing it.

The solution to this problem is quite obvious. You learn as if there is no tomorrow because with knowledge comes results. Beginners tend to read only a few good books on trading and only a few articles before they start trading. They exercise too little and very quickly forget how important knowledge is when it comes to finances! Especially in times like these, when the market is experiencing extreme turbulence.

In fact, beginners usually know so little about financial trading that they often don’t even know where to start. How to avoid the most obvious and biggest mistake of all of them?

By learning, reading, attending webinars, attending seminars, practicing on a Demo account. If you don’t have time, do your best to find it! You never know how long it will take you to achieve constant profitability.

2. Loss of important data

Source:databackuponlinestorage.com

Given the fact that we are talking about a system of very complex mathematical algorithms and mechanisms, such a system is fully understandable only to a part of the public with a high degree of computer education and literacy. Those with less IT education are at risk of making a mistake that can even leave them without their resources. Most of these people are simply turned on by the talks of others and their experiences in the area. Thinking that this could be done by anyone with some spare money for investment, makes them jump on the train. The most commonly reported mistakes are related to the loss of key data and information, the possibility of unauthorized intrusion and theft of keys, as well as unintentional disclosure of key information. Unaware of the possibilities of theft they keep the data about the wallets stored on their phones, exposing them to hacker attacks. Avoid this at all costs.

3. Investing in one currency only

Source:bernardmarr.com

Unlike national currencies, crypto has no firm foothold and is not regulated by monetary policies. Modern markets are volatile, which may result in the affirmation of a new cryptocurrency, which could ultimately lead to the cessation of demand for one particular crypto and thus make it almost worthless.

Investing in more than one crypto, following the stock market – the appearance of the new currencies and the prices of the already existing ones is smart advice you should start practicing even before you obtain your first crypto.

4. Poor risk management

Source:coindesk.com

When it comes to business, risk and rewards go hand in hand in any market. Indeed, beginners in this particular field do not pay much attention to it. Risk management is an essential part that will define your success in crypto trading. You can’t expect to make money blindly by following a trading strategy. When you manage risk effectively, achieving success becomes a reality, not just an opportunity.

Only risk the capital you can afford to lose and nothing more. Believe it or not, many beginners in the market trade capital they cannot afford to lose. This can be disastrous because these markets, like most other markets, such as stocks, are extremely, notoriously risky. There is no guarantee that you will always make money. Losses in trading are part of crypto trading. So, decide when is the best time to trade, and stick to your decision. Sometimes people get hooked and wait too long, never being satisfied with the price they can get. As a result, the price drops even lower.

There is also additional pressure when trading money that you must not lose. You make wrong decisions by trading like this, so try to avoid it if possible.

5. Short term investments

Source:armyofbitcoin.com

There have been many people in the past who thought this is a good opportunity for a short-term investment. They rushed to get a bank loan, invested in crypto, but the price suddenly fell and they were left with a huge debt. Be aware that this market is not suitable for short-term investments. Only the long-term ones make sense in the crypto market. These currencies are prone to rise and fall on a daily basis. If you recognize that a certain currency has the potential to grow in a couple of years, go for it. Otherwise, stop until it’s too late.

The Crypto market is a good trading opportunity. But only if you invest time in reading, analyzing, carefully planning, and observing.