Beginner’s mistakes not to make on cryptocurrencies
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Cryptocurrencies are in fashion and are generally a novelty for most Forex/CFD/Other traders. So I suggest we list here some mistakes to avoid on cryptocurrency trading:
Only invest funds that you would be ready to lose without remorse, tears or emotions in cryptocurrencies.Cryptocurrency trading is very risky (even if at first glance you might think that they only increase).
When you create a wallet, you are given two addresses: a public key and a private key. NEVER tell anyone your private key, this is basic! With the private key anyone can access your account and steal all your cryptocurrencies.
There is no need to worry about telling someone your public key; it is used to access the account in visitor mode only, or to transfer funds to the account.
Yes yes..... That is possible! If you foolishly transfer Bitcoins to a NAVcoin wallet, your funds will definitely be lost in the blockchain. No need to bother your cryptocurrency broker’s support team, or file a complaint for fraud. You are the sole master of your cryptocurrency transfers; so don't make any mistakes with them.
Reminder: transfers of certain cryptocurrencies (e.g.: Problem of transferring Ether) are carried out in the form of a "smart-contract". However, not all the receiving sites necessarily have these “smart-contracts". Make sure you are well informed before transferring from wallet to wallet.
Always ensure everything is secure with "two-factor authentication", unless you want to connect one day to unwind a position, and find that your cryptocurrencies have disappeared.
Do your homework before investing in a cryptocurrency! Its rate variation (whether it is +500% or -95%) does not necessarily make it an attractive cryptocurrency. Each cryptocurrency represents a means of exchange or supports fundraising for a project. So read the white paper on each cryptocurrency’s site before you dive into it.
For some investors, it is too long and complicated (according to them) to go back to fiat (in euros) when reselling an altcoin. As a result, these investors return (and remain positioned) in Bitcoin or Ethereum on reselling an altcoin. Problem: Bitcoin continues to fluctuate. The capital gains recorded on the resale of an altcoin can very well be transformed into a capital loss simply by keeping the funds in Bitcoin.
NB: so far these investors have never had to complain, Bitcoin has continued to increase. The capital gains of an altcoin have been transformed into bigger capital gains in Bitcoins.
In short: if you cash in the capital gain or loss on resale of an altcoin, do not stay in Bitcoin (or in Ethereum). Transfer these Bitcoins (Ethereum) to the site/broker that will let you return them to euros (or dollars).
Oh yes! I prefer to say it like it is! Nobody knows exactly what these cryptocurrencies have in store for us. So be careful; know how to cash in your time gains and send them back to your bank account in euros.
And it's the same for the ICOs. Believing that all the new cryptocurrency listings necessarily allow you to multiply your investment by 10 or 100: that's not the case! Some ICOs will one day end in failure.
Altcoins are often rated according to Bitcoin. But Bitcoin has only gone up, and up, and up. As a result, the XXX/BTC charts are often in a bearish trend, suggesting that the cryptocurrency concerned has devalued. That's not true!
For example, NAVcoin currently quotes 0.00010 Bitcoin. These are almost the lowest in history. It looks as though NAVcoin is currently cheap. Yes, it is cheap against Bitcoin, but it increased in value less quickly than Bitcoin.
If we look at the NAVcoin quotation against the euro, or NavCoin’s capitalization (in euros or dollars), we then realize that the NAVcoin has also risen.
Trading cryptocurrencies is risky. Like all investments, putting all your eggs in the same basket does not diversify this risk. So consider diversifying your investments in cryptocurrencies.
In my opinion, it has now become impossible to get rich with Bitcoin. It's just too late. On the other hand, some altcoins or ICO (to come) offer (in my opinion) a much better upside potential.
Those who knew how to keep their Bitcoin, bought for a few cents, are now multi-millionaires; but do you know how to do the same? If the cryptocurrency you are already investing in increases by 200%, will you not withdraw all or part of the added value?
So think about generating large capital gains with this speculative investment rather than getting rich.
Talking about creates jealousy; it also attracts people towards a universe which is clearly "blurred" and which they may come out of a little battered. So far, all those who’ve talked about it (me first) have been happy. But cryptocurrencies continue to create a buzz and to rise. What will the people around you tell you if they start investing in cryptocurrencies (following your advice) only 2 days before a global correction of 90% on the crypto market? I’ll let you think about it.
If you know any other mistakes you shouldn't make, don't hesitate to let us know here.
Error 1: investing funds that you need.
Only invest funds that you would be ready to lose without remorse, tears or emotions in cryptocurrencies.Cryptocurrency trading is very risky (even if at first glance you might think that they only increase).
Error 2: telling someone your wallets’ private address
When you create a wallet, you are given two addresses: a public key and a private key. NEVER tell anyone your private key, this is basic! With the private key anyone can access your account and steal all your cryptocurrencies.
There is no need to worry about telling someone your public key; it is used to access the account in visitor mode only, or to transfer funds to the account.
Error 3: foolishly losing funds through a transfer error
Yes yes..... That is possible! If you foolishly transfer Bitcoins to a NAVcoin wallet, your funds will definitely be lost in the blockchain. No need to bother your cryptocurrency broker’s support team, or file a complaint for fraud. You are the sole master of your cryptocurrency transfers; so don't make any mistakes with them.
Reminder: transfers of certain cryptocurrencies (e.g.: Problem of transferring Ether) are carried out in the form of a "smart-contract". However, not all the receiving sites necessarily have these “smart-contracts". Make sure you are well informed before transferring from wallet to wallet.
Error 4: not securing your wallet or your access to the trading platform.
Always ensure everything is secure with "two-factor authentication", unless you want to connect one day to unwind a position, and find that your cryptocurrencies have disappeared.
Error 5: buying an IOU or a SCAM
Do your homework before investing in a cryptocurrency! Its rate variation (whether it is +500% or -95%) does not necessarily make it an attractive cryptocurrency. Each cryptocurrency represents a means of exchange or supports fundraising for a project. So read the white paper on each cryptocurrency’s site before you dive into it.
Error 6: staying in Bitcoin or Ethereum when reselling an altcoin
For some investors, it is too long and complicated (according to them) to go back to fiat (in euros) when reselling an altcoin. As a result, these investors return (and remain positioned) in Bitcoin or Ethereum on reselling an altcoin. Problem: Bitcoin continues to fluctuate. The capital gains recorded on the resale of an altcoin can very well be transformed into a capital loss simply by keeping the funds in Bitcoin.
NB: so far these investors have never had to complain, Bitcoin has continued to increase. The capital gains of an altcoin have been transformed into bigger capital gains in Bitcoins.
In short: if you cash in the capital gain or loss on resale of an altcoin, do not stay in Bitcoin (or in Ethereum). Transfer these Bitcoins (Ethereum) to the site/broker that will let you return them to euros (or dollars).
Error 7: believing that cryptocurrencies only rise and always will.
Oh yes! I prefer to say it like it is! Nobody knows exactly what these cryptocurrencies have in store for us. So be careful; know how to cash in your time gains and send them back to your bank account in euros.
And it's the same for the ICOs. Believing that all the new cryptocurrency listings necessarily allow you to multiply your investment by 10 or 100: that's not the case! Some ICOs will one day end in failure.
Error 8: foolishly believing that a cryptocurrency is not expensive
Altcoins are often rated according to Bitcoin. But Bitcoin has only gone up, and up, and up. As a result, the XXX/BTC charts are often in a bearish trend, suggesting that the cryptocurrency concerned has devalued. That's not true!
For example, NAVcoin currently quotes 0.00010 Bitcoin. These are almost the lowest in history. It looks as though NAVcoin is currently cheap. Yes, it is cheap against Bitcoin, but it increased in value less quickly than Bitcoin.
If we look at the NAVcoin quotation against the euro, or NavCoin’s capitalization (in euros or dollars), we then realize that the NAVcoin has also risen.
Error 9: not diversifying your cryptocurrency portfolio
Trading cryptocurrencies is risky. Like all investments, putting all your eggs in the same basket does not diversify this risk. So consider diversifying your investments in cryptocurrencies.
Error 10: believing that you can get rich on cryptocurrencies
In my opinion, it has now become impossible to get rich with Bitcoin. It's just too late. On the other hand, some altcoins or ICO (to come) offer (in my opinion) a much better upside potential.
Those who knew how to keep their Bitcoin, bought for a few cents, are now multi-millionaires; but do you know how to do the same? If the cryptocurrency you are already investing in increases by 200%, will you not withdraw all or part of the added value?
So think about generating large capital gains with this speculative investment rather than getting rich.
Error 11: talking to your entourage about your cryptocurrency investment performance.
Talking about creates jealousy; it also attracts people towards a universe which is clearly "blurred" and which they may come out of a little battered. So far, all those who’ve talked about it (me first) have been happy. But cryptocurrencies continue to create a buzz and to rise. What will the people around you tell you if they start investing in cryptocurrencies (following your advice) only 2 days before a global correction of 90% on the crypto market? I’ll let you think about it.
If you know any other mistakes you shouldn't make, don't hesitate to let us know here.
