Essential information about cryptocurrency
Investments in cryptocurrencies have become an attractive option for many, due to some success stories. For example, Bitcoin registered an increase of over 500% from the beginning of 2020 until the end of 2021. However, success does not come without risks. It is vital to be aware of the common mistakes of investors to avoid losses.
Mistake no. 1: ignoring education
Many investors investors in cryptocurrencies enter the market without understanding cryptocurrencies and risks associated with investment in cryptocurrencies . Studies show that informed investors are 60% more likely to make significant profits. It is essential to know concepts such as blockchain technology, market volatibility and fundamental analysis.
For example, if you want to invest in Ethereum, you should understand how smart contracts and decentralized applications (DAPPS) work. A good source of information about what ETH is could be this video on YouTube or website .
This knowledge can help you make informed decisions and avoid common traps.
Mistake no. 2: Dependence on custody platforms
Storage of cryptocurrencies on custody platforms, such as binance or crypto.com , may seem convenient, but it comes with risks. For example, in 2020, the Kucoin was attacked, and funds of about 150 million dollars were stolen.
A safer solution is to use hardware wallets, such as Ledger or Trector , which gives you control over your funds.
Buy cryptocurrencies from known platforms, such as Abarai , which offers strict security measures.
Mistake no. 3: Failure to comply with security measures
Security is a priority in the world of cryptocurrencies. Statistics show that 50% of investors who do not use two -factors authentication lose their funds in ways that could have been avoided.
The use of safe practices, such as advanced security acts, keeping private keys in safe places and avoiding public Wi-Fi networks. Keeping private keys in safe places is as important as the safe preservation of the birth certificate or other essential documents.
Mistake no. 4: Investment without a plan
Without a well -defined investment plan, the risk of loss increases. Statistics show that investors investors in cryptocurrencies that develop a clear strategy are 75% chance to protect their long -term investments.
Elaborates a plan that includes investment objectives, amounts to invest and clear strategies for consolidation or output. For example, if you want to buy bitcoin at the price of $ 10,000 and you want to sell at the price of $ 15,000, it would be good to hold on to this strategy because due to emotions there is the possibility of not selling how you planned and the value of cryptocurrencies will decrease.
A very good source from which you can find out the price of a cryptocurrency such as bitcoin, ethereum or xrp (ripple) is bitcoinprice.ro
Mistake no. 5: Following the trends
Many investors decide to buy cryptocurrencies that are fashionable, but not all are sustainable. For example, in 2021, many "Memecoin" type tokens were growing rapidly, but most lost over 90% of value in the next month.
Research each individual cryptocurrency, analyze the rear team and the purpose of the project. Find out how it can bring real benefits to users, not just fast profits.
Final reflections
Investments in cryptocurrencies can provide extraordinary opportunities, but it is important to be aware of the frequent mistakes that can lead to losses. If you are informed, apply robust security measures and create a solid plan, you will be able to successfully navigate in this dynamic market.
At the same time, the fact that many users choose to store cryptocurrencies on exchanges and do not have a own wallet may come with many risks. Our recommendation is to install a Wallet on the phone (see the article how I can install a bitcoin wallet ) and to personally deal with fund security.
Maintains a disciplined and educated approach to turn the risks into financial opportunities. Be prepared and invest with confidence, built on a solid foundation of knowledge and strategies.
