Playing with cryptocurrencies: how to prevent frequent mistakes

The world of cryptocurrencies is special, mostly unknown and basically full of pitfalls. Understanding deeply this kind of investment is not easy, especially if you do not possess the basis to approach the financial topic.

The positive surprises that Bitcoin brought in 2017 convinced several investors to test their luck with trading. Many have in fact made some profit. The trend in the last months of the year, however, has revealed many doubts and has made it clear that the sector is not as clean as was believed, especially for the “novices” of the investments.

Starting in November, the value of cryptocurrencies declined and with 2018 small investors enjoyed the bitter taste of the classic trading volatility. This is also due to the unpleasant but legal manipulation from big bitcoin holders who exploit low investment volumes on their behalf, to the news disclosed on the alleged vulnerability of the technologies linked to the industry and the hypothesis of the introduction of repressive regulations.

Experts following the loss of money of so many traders have highlighted the main mistakes that small bitcoin investors commit.

Recurring errors bitcoin investors have made

Lack of organization

Many users have been persuaded to buy bitcoins from advertisements and news about the positive records of this currency without informing themselves enough, without having financial skills or without second thinking. However, when it comes to money (especially your own money), a strategy is always needed. Trading requires a precise and meticulous organization, calculated timing and specific profit target. It is not wise to invest your money carelessly on anything, simply hoping to get rich.

It would be different if you were investing, for example, in an online game, where risk is part of the game itself. It is to be said that this is not always true, not even in the online casino UK sector, where often players have the possibility to play free games or to try other activities without investing anything. In cryptocurrency trading, however, it is necessary to think carefully and read up on different sources before moving in any direction. The media sources who spread news on the topic are many and varied, not always homogeneous and coherent, but rather, messy and chaotic.

Not taking safety precautions

The deadliest mistake in the cryptocurrency industry has definitely been the choice to leave to exchanges (intermediary platforms and brokers) your tokens, without having any kind of guarantee. One must remember that even if it is not tangible money, it is still your own money and therefore you have to make sure that you are the only one to have full control of it with passwords and private keys. At any rate, it is always necessary to define a maximum investment limit, in order to have a reserve always ready for any other need.

the author

He’s a cat. He likes to play video games. He often has a hard time with this since he’s a gamer cat living in a gamer human world, but he gets by.