How not to drown in a crypto storm - 5 rules for 2020
People have always looked for various opportunities to get rich quick, and often - investing in very dubious enterprises that are becoming popular in the wake of universal hype. Empty promises of a golden age have long passed, and the world saw that more than 80% of market projects are seen as Ponzi schemes and pyramids, fraud of all kinds, aimed only at attracting huge amounts of money on a global scale. Crypto niche is no different from other areas in this case - many new people join the digital asset industry every day, and we see that they make the same mistakes again and again. There is an effective way to avoid this by learning and remembering the most common ones.
Here are some of the most common crypto investing fails and tips on how to avoid them:
1) Inadequate communication is dangerous
It’s too risky to invest your hard-earned fiat money in something you are very little informed about. Most people rely on the opinions of “trusted” friends or some kind of self-proclaimed network experts, and for them it ends badly. You need to have a clear idea of how the crypto industry works, study trading tips and the specific pros and cons of the market before you make any initial investments.
2) Greed is bad
Many pioneers and early adopters of digital assets quickly became multimillionaires. This idea keeps many people still awake and has prompted many to start mining crypto - mining Bitcoin and other digital assets on their own is still popular. However, in 2019, the picture is completely different than a few years ago, and before deciding to buy tons of equipment, take seriously all the risks associated with mining efficiency and energy costs.
3) Excessive activity is contagious
Not everyone can become an effective trader, although this was one of the most trending professions last year. Keep calm and you will be rewarded. Planning is also a must. Maximum concentration during a long working day is not even subject to discussion. Moreover, you never know how high the price of an individual asset can be, so emotions should be off-game when you try to win at the price of the course.
4) Cybersecurity challenges are numerous
As for security and privacy: you should always have your personal access keys, because wallets can break, and transactions are compromised, and you can lose thousands of dollars per second.
Sending funds to the wrong crypto wallet is also a common mistake: double check if the wallet to which you send funds coincides with the token - just make sure that everything is correct. Do not forget to make offline copies of all your passwords, private keys and other important data if you want to feel secure. This is important because you probably want to be able to access and recover all of your cryptographic data, even if your computer crashes, is stolen, or something like that.
Forgetting 2-F authentication, you also become open to various vulnerabilities. You must also keep all your codes offline so that you can unlock your account when something terrible happens.
5) FOMO factor - your worst sin
Fear of Missing Out is a big and evil monster. Many overestimated and unexpected success stories greatly affect the fragile minds of lovers, and this is not only a problem for the crypto industry. Fear of missing an opportunity can make you take hasty actions / decisions that you might miss because of something valuable. Realize the fact that, although you can always miss some things, you will always find other possibilities for yourself. Moreover, you cannot use all the opportunities that the world offers!
Our short notes illustrate some of the most common mistakes that beginners make when they first enter the world of cryptocurrencies. Be sure to remember them and learn to avoid in the future. We hope this helps you not to suffer in the storms of the cryptocurrency world!
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