It is common Beginner mistakes in the world of Cryptocurrencies, but the most appropriate thing would be to be able to avoid them. We explain how.
The world of Cryptocurrency is still relatively new to many people, so it lends itself to a lot of rookie mistakes.
Unfortunately, this is something that can greatly compromise your investments and profits. So the best thing in these cases is to do everything possible to prevent them.
So to be well prepared and thus avoid any problems, here we list the most common mistakes in the Crypto world, which you should prevent at all costs.
Technical ignorance of Cryptocurrencies
If you have ever had the opportunity to interact with a small child, you will notice several things regarding the use of money: firstly, they do not understand its real value per unit, nor will they be very clear about whether a price for a product is adequate or not, and they will not understand the concepts of managing a Savings or Credit account fee.
The same thing happens when we start our life in the Crypto world. We are very familiar with fiat money and perhaps virtual transactions offered to us by our trusted bank, but Cryptocurrencies work very differently.
We are children who have to start their learning process; so making transactions with Cryptocurrencies without knowing how a blockchain works or what a personal wallet is. It’s the worst mistake of all.
A good solution is to take the time to research on different platforms and take courses on the crypto world. These will give you the bases to be able to make investments intelligently and without putting your money at risk.
Excess of self-confidence in financial decisions
Another serious mistake is to consider that we already know everything there is to know, and that everything we do will have 100% safe and positive results. This advice works not only for Cryptocurrencies, but for all financial decisions in general.
When we have excessive self-confidence, we do not evaluate the risks well, and this means that we cannot take contingency actions or insurance measures in our actions.
In the Crypto world, volatility causes Cryptocurrencies to rise a lot in price overnight, but the same can happen when they fall. This is why you should never make hasty or impulsive decisions.
Compare the information, measure the risk of your operations and understand that in the Crypto world, investments do not provide you with 100% security of profit.
Do not use trading platforms for crypto transactions
Does it seem normal to you that a large department store does not use cash registers or provide receipts for purchases? The system probably lends itself to fraud, unrecorded transactions and all kinds of financial problems.
It is for this reason that transactions with Crypto assets should only be done on specialized platforms for this.
Cryptocurrency trading platforms, be it an exchange or a P2P platform, have technical backup mechanisms that make them safe to operate.
In them there are mechanisms such as Escrow, a guarantee deposit that insures the Crypto assets while a transaction is being made and commercial disputes that allow subsequent claims to be made.
They are also under the KYC (know Your Customer) regulations, so that, even if you negotiate with someone with a pseudonym, the platform is aware of the identity of all users while protecting their privacy.
Another great advantage of the platforms is that they also have AML and KYT regulations, which prevent you from negotiating with Cryptocurrencies involved in money laundering and other types of crimes.
Invest and sell Cryptocurrencies based on third-party recommendations
Buying Cryptocurrency is not something to be taken lightly. And although it is always good to listen to recommendations and advice, we must ensure that these come from people trained in the subject.
If someone recommends that you invest in a certain token, do your own research first, create your own opinion and find out about other Cryptos. In this highly varied market, the offer is created to adapt to different needs.
Not paying attention to the movements of Cryptocurrencies in the market
If you were to buy a gold ring right now, you would surely look up the price of this precious metal in the market, so that the jeweler charges you fairly for the material he is using. You should do the same when you are going to buy or sell Cryptocurrencies to make sure that the transactions are given at the right price.
Luckily, staying informed of the prices of the different Cryptocurrencies is very simple, since there are many specialized pages that allow you to obtain all the information you need for your investments.
Similarly, knowledge of token price fluctuations is not enough by itself. You must also handle the basic and general concepts of the Crypto world, and thus be able to make intelligent investments with reduced risks.
To do this, in MegaAcademy we have designed a basic Cryptocurrency course that will teach you from the main and basic aspects, to the best tips to become an expert trader.
So if you want to start your investments in the Crypto world without making rookie mistakes, don’t think twice and join MegaAcademy today.