Bitcoins are a digital currency, and their hype has been increasing ever since they were created; more and more people have started investing in them, and many public places and online stores have started accepting bitcoins as the mode of payment. The credit for this increasing popularity goes to the fantastic facilities of bitcoins. But amidst this growing popularity, a fraction of the population is still not informed about how to trade securely and make mistakes while bitcoin trading.
If you are also confused, read the article below to know some common mistakes people make while trading and beware of not making these mistakes. Bitcoin Future is one of the trustworthy trading platforms which can let you trade cryptocurrencies in a hassle-free manner!
Losing keys
Bitcoin uses blockchain technology, this contains a shred ledger to make records of transactions, and you can access this ledger with your private keys. However, once lost, these keys cannot be recovered, and neither can you access your account or your assets without these keys. So, it is advised to preserve your keys because losing them can mean losing the assets you invested in.
Letting emotions do the trading
It is observed that traders often make decisions guided by emotions like fear of losing, and they pay for the careless move in terms of huge losses. If you become very greedy and keep on investing without thinking, you might have to regret your decision later.
It would help if you never let your feelings affect your decision; the strategy for trading can be keeping emotions aside and thinking mindfully. It would prove beneficial if you accept that not every trade will produce profits; even traders who have been in this field for a long time lose money. So, it is ok to lose; all that matters is the ratio of profit to loss which should be at least 2:1.
Trading quantity over quality
It is observed that people who overtrade often end up wasting their money and time. Choosing quality over quantity is the strategy of effective trading. Trading less according to the market’s demands can produce great results because not every market condition can be fulfilled with the same strategy. Deciding the strategy that works best for you and moulding it according to the market conditions; can yield significant profits.
Falling for scams and frauds
The increasing popularity of cryptocurrency invites many opportunities for unfortunate incidents to happen. These days scammers get their evil plans endorsed by celebrities and use catchy advertising phrases like guaranteed results and double your money to make them seem more real. Scammers even use blackmailing to get cryptocurrencies or private assets from people; they threaten to leak their private pictures or videos in public. Moreover, scammers even use dating sites to make innocent people believe that they are romantically interested in them; when the trust is built, they ask their prey for their crypto-related information. To avoid such situations, you are advised never to trust someone with your personal information without knowing about them. Furthermore, it would be best to avoid emails and links from unknown senders, as they might get viruses in your system.
Using a public network
The wifi connection at most public places is considered weak and can be broken into easily, so you are advised not to log into crypto accounts using any public network or a network you do not trust. It is always advised to use your home network during crypto trading. Moreover, it would help if you kept changing your wifi password frequently to ensure added safety.
Choosing an exchange without research
An exchange plays a significant role in your trading, as it acts as the mode of communication between the sender and the receiver. Hence it becomes essential to choose the correct exchange. It would be best if you look into the background of the exchange before choosing one; it would help you to learn about its history in scams and frauds. Taking opinions from people already associated with that exchange can be helpful.
Furthermore, you should check how difficult it is to log into your account, and it will ensure that if hackers were to hack into your account, the process would not be easy for them. In addition, you should compare the transaction fees at different exchanges before making up your mind.
Thus, above mentioned are some common mistakes people make while bitcoin trading.