This blog is dedicated to unfolding all the happenings in the cryptocurrency world. This post will try to analyze and point out the common mistakes in cryptocurrency that both the newbies and the older people sometimes fall into this trap.
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Common mistakes in cryptocurrency
This post will look at the said topic in different ways. Get a cup of coffee and follow me on this ride.
Forgetting your password, private key or recovery phrase
I always advise people to know that the first rule in cryptocurrency is for you not to forget your wallet password. The beauty of this blockchain is the decentralization, and that leaves you solely responsible for the safety of your login details.
On no occasion should you forget your password, private key, or recovery phrase. Doing this means you might never get access to your account anymore.
I know private keys are hard to remember since it’s a combination of random letters and stuffs that you did not create. All you need to do is to get the right place to store them. Treat them important because your fund accessibility depends on them. I will write a separate blog post on the possible ways for you to keep your login details safe.
Leaving a large amount of cryptocurrency in an exchange
One of the common mistakes in cryptocurrency is leaving a large amount of cryptocurrency in an exchange. When you plan to hodl large amount of cryptocurrency, you should transfer them to your wallet. This way, you’ll get to be in charge of your money and will be fully in charge of the money.
When you leave your money in an exchange, then you are at the mercy of the exchange, one thing in this type of situation is the fact that you are not indeed in charge of the money. Let’s say you want to make a withdrawal for something urgent, only to find out that your exchange is under maintenance.
Using the same scenario, you may have issues that need verification and might have to wait hours or days for it to be sorted out. The greatest fear is the exchange been hacked, and you might lose all your funds in the process.
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Invest the amount that you can afford to lose
This is a vital part of cryptocurrency that people fail to understand. There is no guarantee that a particular coin will buy you a Lambo. Always invest what you can afford to lose. Investing what you can afford to lose will take the pressure off your shoulder and you won’t be among those that will be calling cryptocurrency scam.
Let’s say you bought Bitcoin at $8,000 with all your life savings, you will experience a lot of avoidable pressure if the price falls to $4,000. Out of panic and need for quick cash, you might decide to sell. This will leave you poorer than you were before. The story would have been different if you had invested your spare money, you would have hodl and even be on profit by now.
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Common mistakes in cryptocurrency: Wrong Address
Sending your cryptocurrency to the wrong address is one of the common mistakes in cryptocurrency.
Unlike the regular bank transfer that displays the name of the receiver, most cryptocurrency wallet address does not show the receivers name. In such cases, the sender should double-check the address in other to avoid stories that touch. It is very difficult to retrieve money that has been sent to the wrong wallet address.
Common mistakes in cryptocurrency: Lack of patience
Patience is a virtue that we must all adopt in the crypto world. The good news is that everyone at cryptounfold has this rare virtue. Cryptocurrency is not A QUICK RICH SCHEME. That your friend was lucky to buy a coin that did 10X in a day does not mean that the coin will always keep mooning.
You need to be patient, you need to take out time to read the whitepaper of a project before investing. Knowing the use case of a project will help protect you from so many fake projects that are currently pulling major exit scams.
With great patience, you can hodl your tokens through the turbulent sea of dip and through the bear market.
With patience, you will not be in a hurry to pursue all those quick money schemes, and you will finally find yourself smiling in the Bull market.
There is still no guarantee that you will even buy a Lambo, but avoiding these common mistakes in cryptocurrency can turn out to be a lie safe.
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