Cryptocurrency has been a huge topic of conversation in recent years as the bull run has run its course and it looks like the rest of 2022 is going to be a bear market. This doesn’t mean it is a bad time to buy, in fact, while things are low, get stuck in with your research and purchase a couple of coins to watch. Prices in some coins are rising while many are falling rapidly meaning it is hot pickings for many people. It’s still a viable option to expand the investment portfolio, you simply need to understand that there are some tips to follow, but there are also some mistakes to definitely avoid. Crypto trading can be very risky, but it is also very rewarding if you win.
With the influx of interest in the topic, it is only natural for many people to be wanting to get some advice and help on how to do it properly. In this article, we will go through some of the top tips and mistakes to avoid.
Crypto Tips and Mistakes
Falling for Scams
We are now in a recovering economy which means that anyone will do anything for some quick cash. More scrupulous characters come out of their dark corners to make some money from cryptocurrency. Scams are rife in this industry and it is very easy to fall for these scams if you don’t know what you are looking for. The saying goes, “if it looks too good to be true, it usually is” and this is especially the case with crypto trading. Instead, take everything with a pinch of salt and do your own research before investing in a coin. You should also ensure that two-step verification is available on your trading platform.
If you have hired a broker to help you on your crypto journey and have been misled or advised wrongly, which has, led to a loss in money, there is an opportunity to recover these losses through contacting an investment fraud lawyer who can provide assistance on recovering your losses.
Strategize Crypto Trading
When crypto trading first came to light, you probably saw some of your friends, colleagues or acquaintances make some extra money resulting in you becoming more interested. Well, it is far too easy to fall for recommendations and invest in things your friends are investing in, but this is a bad idea as you should always be doing your own research and making your decisions on your own. There has been an influx in scams recently with the average person losing around £20,000.
There are ways that you can avoid this from happening to you. It won’t be easy at first, but it will definitely get easier the more you do it. If you are overloaded with jargon and information, step back for a moment and look at the information critically. Ask how many users it has? What does the project aim to do? Have they done anything tangible to show their work?
Don’t Buy Just Because Prices Are Low
As we said before, if it sounds too good to be true, it usually is, especially when it comes to crypto trading. If there is a project you have your eye on because it is cheap, it doesn’t necessarily mean that you are getting a bargain as you could simply be wasting your money on something that won’t bring any returns. Another tell-tale sign that you shouldn’t invest is to see whether there are still users or are they dropping off like flies? If they are dropping, stay away. Cryptocurrency is unregulated and developers can scrap a project easily without updating platforms so that’s another factor to consider.
There are many articles and forums out there aiming to give advice on cryptocurrency as well as what coins to invest in. The fact is, these people are not looking out for your best interest, they are actually encouraging you to purchase so their price rises. Many are also just promoting their own coins or organization. Rather than this, only listen to yourself and reputable brokers as this will minimize the risk factor.