Planning to invest in Bitcoins recently? Before that, you need to consider a couple of important factors. That’s why below, we’re going to explore some of the dos and don’ts when it comes to crypto investment, and we are starting with the most basic, i.e. Don’t:
Don’t Leave Your Funds in Your Exchange Account!
Many people new to investing in cryptocurrency consider trading platforms like Binance, Coinbase, and even the website of bitcoin evolution, a newly trending exchange, as the only ‘authorities’ in the crypto field. If you’re one of them, keeping in mind the risk factors involved, especially the identity theft. Unless you want to risk losing your purchased funds, it is advised not leave your funds in your exchange account.
Don’t Let Crypto’s Volatility Spook You
Most digital assets today are volatile investments which is no doubt. That means the value of cryptocurrencies can change massively over a single day. Due to this, you might see the price of a particular token skyrocketing, sending people to the exchanges to sell their newly-valuable crypto. Or, as many people fear, it might take a steep dive off a cliff, sending anybody holding large amounts of the token into a depressed slump.
Don’t Go Looking For the Next Bitcoin
It’s not an uncommon factor to see crypto newbies looking out to make financial profits for ‘the next successful Bitcoin’. They believe to expect trading in tokens that will blow up the same way Bitcoin did. You’ll even see many cryptocurrencies labeling themselves as such to draw the attention of these people, however, there aren’t much in the world of cryptocurrencies.
On a practical note, there’s only one Bitcoin invented, and no matter how many coins label themselves as being just as popular, they never will be as Bitcoins. The only thing you’re likely to gain from buying a token promising to be ‘the next Bitcoin’ is an increasingly large amount of worthless crypto which may not benefit you that much.
Don’t Listen to Mainstream Media
It is no doubt mainstream media chases views, follows, and likes, and if that means exaggerating facts (or, in some cases, making them up free of charge), then so be it. In regards to that, looking for crypto advice or news on mainstream media will lead you to believe the only people investing in crypto are money launderers, scam artists, and tech billionaires.
Instead, it is advised to use only use reputable sources for your crypto news, like Coindesk.
Don’t Fall For AnyScams
Bitcoin recently has reached an all-time high of $60,000 has, drawing more attention to crypto than ever, which means that while you’re going to see a lot more of the newbies, you’re also going to be seeing a lot more of the scam artists. Because of just how uneducated most crypto investors are about the subject, it’s not always easy to protect yourself from people’s malicious intentions. Yes, you heard us right. Dogecoin isn’t blowing up and it is advised not to buy it.
Don’t Sign Up For a Pump N’ Dump
Ever heard of a Pump N’ Dump group? These groups consist of an internal number of people manipulating the price of a token by buying massive amounts and selling when unsuspecting newbies, seeing the sudden rise in popularity of the token, have bought into the token as well.
Even if you’re tempted to join one, remember that you’re essentially trying to ride the pump before the dump happens. That means in the end, you’re going to lose your hard-earned money, no matter what.
Final Words
If you’re planning to invest incryptocurrencies, no matter the reason, it’s essential to do proper research. It is also important that you don’t rush to make huge profits overnight only by cryptocurrency investment.
At the end of the day, if the volatility of crypto makes you nervous, you’d also better not checking your entire portfolio on a regular basis. You might lose out on a buying/selling rush, but at least you won’t be switching from how taut your nerves will be. Considering all the mentioned above factors in cryptocurrency investment, you should be highly aware and make invesments accordingly.
