10 Biggest Mistakes to Avoid when Starting with Crypto

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2 years ago

1 - Not having a Clear Plan:

a) Have you studied / learnt from reputable courses / investors long enough (at least 6 months) to understand well the market of Crypto in full detail?

b) Have you tried a Demo account ?

c) What is your current financial position ?

d) Never risk / invest more than you can afford to loss

e) Do not borrow money or use leverage if you do not have clear understanding and prior successful experience with them

f) What is your risk tolerance?

* Aggressive (maximum return with maximum risk)

* Moderate (balancing high and low volatility investments)

* Conservative (risk-averse approach with little or no risk but lower return)

g) What strategy will you use? : Buy and Hold?, Buy cheap and sell high? , Trade with Fundamental, Technical and Sentiment Analysis Tools?, Buy the rumour and sell the news? , etc.

2 - Pick up the wrong Crypto Exchange 

a) Do a fully comprehensive research. Have a look to popular and well-established crypto websites like CoinGecko or CoinMarketCap.

b) Verify the exchange is legit and supervised by the appropriate authority in your country, including insurance and audits

c) Is your currency accepted there?

d) What the fees and charges are?

e) Check with your bank how they transfer or receive Crypto into your account (any conditions, restrictions, limits, etc)

f) What are the Exchange' functionalities?

3 -Not doing always your own research

4 - Taking too much risk or leverage : 

a) Set up Stop Loss and Take Profit levels, usually a 2:1 Reward to Risk Ratio is acceptable.

b) Avoid high leverage

5 - Trust in online wallets and do not Get a Hardware Crypto Wallet(secure and offline), like Trezor or Ledger Wallets

6 - Keep seed words, access codes or passwords online : Make sure they are kept in an organized physical notebook or reliable diary and always on a secure place

7 - Not knowing what are the Tax implications in your country

8 - Share your Crypto life and information with friends, colleagues or others

9 - Not Avoiding Scams

10 - Not Selecting an independent, reliable and private email for all your Crypto dealings, for example, Protonmail

 

Please Note : As a little compliment to you for reading my article(s), and if you want to earn Free Bitcoin by answering surveys, roll the faucet and other easy tasks and competitions, just click my referral link below :

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Disclaimer : All the content is NOT financial advise but general information for education purposes. Always do your own research and consult a professional.

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