10 mistakes investing in cryptocurrency and 5 tips

The idea of ​​investing in a cryptographic currency does not occur only to professionals.

Newbies are also willing to invest, especially in this niche there are no restrictions on start-up capital. With both a hundred dollars and a thousand, there are chances of getting rich fabulous.

Basics of investing in cryptocurrency - the mistakes of novice traders will be discussed in this article.

Bitcoins, Ethers, Dash, and many other coins are now rising in price, however, you need to turn on your head, because some have already bought Bitcoins for $ 20,000, and their value has not increased for several months.

10 mistakes investing in cryptocurrency and 5 tips

Investing in cryptocurrency, an error or a profitable contribution?

There are many options for increasing capital. Buying real estate, starting a business, contributing to the development of your site, cloud mining and so on.

Why do you choose cryptocurrency? There should be a clear answer to this, and one explanation - tokens growing in price is not enough.

Indeed, with the help of cryptocurrency, some people have managed to seriously unwind. There is no need to go far for examples, just look at the course chart of any digital coin. Consider the quotation:

10 mistakes investing in cryptocurrency and 5 tips

A total of 5 cents allowed to buy coins in May 2017. Now they cost $ 1.35 and this is after a recession. The numbers are not so attractive at first glance, but let's first count. Take a small amount of $ 100, each newcomer will be able to allocate it for investment.

For a hundred dollars in May, you could buy a 2000 Ripple. At today's rate, these assets really sell for $ 2,700. Here you have the difference, for six months the profit of $ 2600 is clean. Now imagine how much investors earn who invest thousands of dollars.

The main mistake when investing in a cryptocurrency

It is profitable to invest in a crypt really, but the majority are not serious in this matter.

As in any other niche, you need to be closely engaged in the analysis, follow the trends, build forecasts. Otherwise, how do you know in which cryptocurrency you need to invest money. After all, not all of them will rise in price in the future.

All newbies want to make a profit as soon as possible and not paying attention to all the warnings, buying up coins. This is their mistake, they do not even try to understand this niche.

There are many useful materials on our blog that will help you learn more about cryptocurrency:

  • where and how to exchange cryptocurrency;
  • how to withdraw Bitcoin;
  • how to create a Bitcoin wallet;
  • what are Satoshi and Litoshi;
  • which cryptocurrency is better to mine;
  • multi-currency wallets cryptocurrency.

You will spend no more than an hour studying these materials. Of course, you will not become a pro in the niche, but you will definitely discover something new. We try to avoid complex terms and explain the essence literally on the fingers.

10 mistakes investing in cryptocurrency and 5 tips

TOP 10 errors of investing in cryptocurrency

It is a refusal to learn leads to subsequent errors, and beginners wonder why not everyone it turns out profitable resell cryptocurrency.

We need to act correctly, having studied all the wrong steps of novice traders and investors, we have compiled a list of errors that are most often made:

1. News tracking

Quotes can change in a few minutes, and news is one of the best signals for this. Moreover, they can contain important information about new developments, cryptocurrencies, ICO projects and much more.

Why does this guru need additional knowledge? Only an illiterate trader asks such a question. It is necessary not only to keep track of current data, but also to improve your knowledge base.

2. Unpromising tokens

Every day there is information about the release of a new coin. Marketers attractively painted everything, promise a big income. Some even bother to execute documents or launch a blockchain in addition to a new business.

One must be extremely careful with such offers. The probability of growth of the rate in known currencies is much higher, most startups "evaporate".

3. Rumors and myths

Bright headlines are accompanied not only by advertising or news. I often find interesting topics, but when I study, I understand that the author is nonsense. There are too many divorced experts on cryptographic currency on the Internet.

Before you listen to opinions, learn more about the person. Perhaps he himself has never conducted a single transaction and has no idea what a blockchain is.

4. Choosing a wallet

The easiest way is to register an account on any website or keep it on stock exchanges. It is convenient, but not safe. Cases of hacking occur constantly, and not only accounts, but also servers of serious sites “break”.

Moreover, large resources can be closed. The best way to keep tokens safe is to buy Ledger Nano S.With a special device, even viruses are not afraid.

5. Backups

According to statistics, most investors store their coins right on the computer. Software wallets are common, but you need to understand that if a PC breaks down, nothing will return.

Therefore, it is necessary to foresee problems and create files for recovery. In particular, you need to copy the private key. Alternatively, print it on paper in a QR code format.

6. Waiting for the correction

You need to buy coins at the moments when the schedule dips out, as everyone knows. But you can wait for this for several months, while other traders will have time to multiply their capital several times.

It is necessary to rely on many factors, starting with the news and ending with your own forecasts. It also happens that after a long wait for an adjustment, the course remains in a negative trend for a long time.

7. Long-term investments

Newbies often follow a strategy by which the cheapest cryptocurrency is redeemed. Even with a small starting amount, it is possible to acquire many tokens. The calculation is that the assets will be able to sell profitably in a few months.

But as soon as the course begins to move in a positive direction, all the coins are immediately sold. If you are planning a long-term investment, it is better to leave it as such.

8. Starting capital

Absolutely with any amount you can really start investing in cryptocurrency. What matters is where you take the money. While catching on with the idea of ​​investing heavily, some newcomers go to extremes.

They borrow, sell property, take loans, forgetting about risks. After all, investments in crypto money, many "burned out", not at the time of buying the wrong coins. For this you need to allocate only free money.

9. Buying a cryptocurrency

Now there are many offers on the market, they may differ by hundreds of thousands of rubles. For example, on Bitcoin exchangers costs 700,000 rubles, and on stock exchanges, coins are sold through orders of 600,000 rubles each.

It would seem that everything is obvious, but even here beginner investors are often mistaken. Some find more lucrative offers, are conducted on the divorce divorce, agree to conduct a transaction outside the stock exchanges (directly).

10. Other people's knowledge

Who wants to wrestle and analyze? It is much easier to find the opinion of an investor online and follow his example. A beginner really should act like this, but first you need to find a good mentor.

However, brains in any case will have to move. Even if you are assured that some currency will begin to rise in price, it is worth double-checking.

It is better to immediately find out where the rakes are laid out than to step on them. Learn from the mistakes of others and right now start exploring the cryptocurrency niche in more detail if you plan to invest in it.

The forecasts for 2018–2020 are promising, analysts and experts are confident that Altcoins have a great future.

10 mistakes investing in cryptocurrency and 5 tips

What should a novice investor remember?

It’s not the first month that I invest in cryptocurrency and I see with my own example how profitable it is a business. Indeed, you can invest profitably, but sometimes you have to fail. The main thing is to stay afloat, and this is where the simple rules help me:

Rule 1 - investment money

I select only from idle funds, i.e. those that I remain for personal expenses and will not be needed in the near future.

You may have to once refuse to go with friends to some institution or postpone the purchase of a new smartphone, here individually. Let the amount be not large, it should not be a pity to lose.

Rule 2 - contributions to Bitcoin

Whoever says what and how attractive the new tokens would look like, Bitcoin will always be expensive. Now his course is floating in the corridor of 11-14 thousand dollars and according to some experts, in 2018 he is able to rise to $ 40,000.

Even if this does not happen, the course will not abruptly collapse, at the moment it is the most reliable asset.

Rule 3 - risk diversification

It is impossible to keep all eggs in one basket, and assets in one cryptocurrency. Even if you allocate 10 bucks at the start, it is better to divide them and invest $ 1 in each token.

The profit will not be as tangible, but the risks are reduced. Cryptocurrency volatility is serious, so at least some of them will definitely bring profit.

Rule 4 - choice of tokens

There are so many different options on the cryptocurrency market now that the eyes diverge. We must not forget that all tokens are designed for specific purposes. It is worth figuring out why a currency is needed at all, and if it is not possible to understand this, then it is better to refuse.

For example, the Exmo exchange will soon launch the sale of EXOCoin, and this is done to introduce margin trading, with which investors will receive dividends.

Rule 5 - a trader or an investor

It is better for newbies not to engage in trading, because it is too difficult to predict short-term quotes changes. It is better to become an investor and choose assets for a medium or long term.

Only when you gain experience, you will understand which cryptocurrency is better, what rates depend on and when they change, you can think about professional trading.

Any investment is accompanied by risks, and success depends on how well it acts. It was difficult to decide to invest, because before I was not so good at all this understood. Now I do not regret, but judging by the forecasts for the coming years, it was not for nothing that I joined the topic.

It is human nature to make mistakes, but if there is an opportunity to get around problems, then why not take advantage of this? Cryptocurrencies definitely need to invest money, for a few more years they will remain in trend and make a profit.

While you were reading this article, the courses have already changed, someone has earned it.

You will also be interested in:
- How to speed up the synchronization of Bitcoin, Ethereum and other wallets?
- Investments up to 3% per day on Crypto Invest
- Investments in mining, deposits and trading with Cryptotek

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