If you’re a cryptocurrency beginner, join us as we identify the 10 most common mistakes you could be liable to make in your online journey through the decentralized monetary system when using cryptocurrency for betting and other endeavors.
Many of the 10 common mistakes bleed into each other, and we start with the most important one.
1 Beware of Crypto Scams and Scammers
As we’ve reported before, scammers have been to blame for huge amounts of lost funds throughout the decentralized monetary system. Our latest report delved into how much money was lost in crypto security incidents during November of 2023, finding that the huge sum of $350 million was stolen from the industry. That was a record monthly figure and the running total of funds lost in the cryptocurrency world stands at a staggering $1.7 billion.
How Do I Protect Myself?
It is hugely important that you understand online security and never open rogue emails or text messages you do not recognize.
Guard against your social media accounts being hacked by phishing and to help do so, read cybersecurity advice, which suggests reviewing your privacy settings in your social media accounts
2 Keep Passwords Safe
It would be a huge mistake to not be aware of the consequences of losing or forgetting your passwords. Cryptocurrency is kept in digital wallets dependent on passwords for access. In general, wallets have a seed phrase as back up security if you lose your password but if you lose this also, your funds could remain lost forever.
3 Understanding Transaction Fees
It’s important to understand your fees for all transactions. Your profit and loss (P&L) will be affected positively or negatively which is dependent on learning your card fees for depositing to certain sites – credit cards can be more expensive than other methods. This information combined with the exchange fees for all sites you use is fundamental to your future crypto trading and will shape your profits accordingly.
4 Understanding Bankroll Requirements – Spread Risk
Not understanding your bankroll requirements would be a common mistake by Crypto beginners. Appreciate how much of your expendable income you want to use in Crypto and this will help spread your risk.
One recommendation is “never put all your eggs in one basket”.
Spreading your bankroll between different crypto assets is the best way of learning the nuances of the industry as investing just in one asset means your portfolio lacks diversification and becomes subject to more risk.
5 Don’t Overtrade
It can be easy to be seduced by promises of big returns often associated with “Leveraged Trading”. In a way, it again means, do not put all your eggs in one basket because this format of trading requires big sums of collateral upfront. Variance is at its highest in these circumstances so overtrading/ leveraged trading is not recommended for Crypto beginners.
6 Concentrate
A common mistake be beginners would be to not concentrate fully when online and making crypto investments. Avoid distractions or opening your digital wallets if you know you’re going to be busy. Dedicate the time solely to crypto, because it is prudent to double-check all transactions particularly the positioning of decimal points before making them, as order errors can be a common mistake for beginners.
7 Never Trade Crypto When Feeling Anxious
Like all forms of wagering, it is very important you understand that if you’re feeling anxious or emotional do not trade cryptocurrency.
It is a common mistake to do so, because it can lead to feelings of FOMO (fear of missing out). The key is to keep everything in perspective while accessing your crypto wallets to ensure you concentrate fully which will help you make optimum decisions.
8 Don’t be Greedy
Not knowing when to complete business and take your profit is a huge leak and mistake for beginners. Never let greed take over, that will affect your decisions and take you away from an optimum strategy.
9 Knowledge is Power
For your cryptocurrency journey, the more knowledge the better, you can never know enough. Over time, the more you learn about the industry, the better for your long-term profitability. Due diligence research combined with experience is the best way to learn the optimum strategy for your digital journey.
10 Choose the Best Cryptocurrency Exchange Platforms
A common mistake is to not choose the best platforms. The key features for a good exchange crypto platform are:
- User-friendly interface for beginners with educational tools.
- A wide selection of cryptocurrencies
- Competitive trading fees
- Trusted site with good reviews
- Strong Security track record
