The ongoing pandemic has certainly caused a “Global financial turmoil”, but amidst all the challenges, the sector that has bucked the trend is Cryptocurrency. Well, crypto investment isn’t a secret anymore — with investors joining in every day to make bigger gains — however, along those massive returns comes the chance of going bust.
Crypto mistakes can be extremely damaging and the rush towards attaining a high ROI can ruin your crypto career. Considering the pros & cons of the asset, here are the 5 easy ways you need to be mindful of if you intend to stand ahead in the market.
1. Get In With Know-How.
Be it crypto or other assets, investing without knowing what you’re getting into is the most rookie mistake. Crypto investments are highly unpredictable, and if completely unaware of what you’re doing, you might end up losing all of your money. We certainly want to avoid that. So, before investing a single dollar, acquire the basics of crypto investing so that you can take better measures in case of an unfortunate situation.
Tip: IXFI Academy is a great place for putting general crypto knowledge together.
Here are some basic things you need to know about crypto to better protect yourself:
· Though it can be used to purchase things, cryptocurrency is entirely digital — it exists only in the digital world.
· Crypto is entirely decentralized & unregulated, and there are no financial institutions or central banks to govern these investments. That means you’re solely responsible for keeping track of your crypto money.
· Pay other users without exchanging any local currency. Moreover, crypto is universal, so you can freely and without worries transfer them across different borders.
· The reason why these digital assets are called ‘Crypto’ is that they’re encrypted. Users are assigned long alphanumeric codes and aren’t mandated to use their real addresses to open investment. This means you can spend your crypto anonymously.
2. Brace Your Relationship With Math!
Crypto investments are all about profit potential. So while you invest, make sure your eyes are on the prize & you’re not fumbling around with the math!
Cryptocurrencies are highly volatile, so it’s not much surprising to encounter considerable price changes within a day or even an hour. Not paying the needed attention to the numbers can swiftly turn your profits into losses.
Here’s the tip.
Benefit from these changes by considering the transaction fees and taxes ( They can cut a significant portion out of your gains).
3. Avoid The ‘Panic-Buy’ Trap.
Dip in the prices always don’t represent bargains; sometimes, prices can be low for a sure-shot reason.
Don’t fall for the ‘panic-buy’ trap if you haven’t researched about that digital capital properly! Instead, watch out for the assets with falling user rates. It’s certainly a better idea to back out from spending instead of leveraging the dip.
Cryptocurrency is volatile, with a lot of unknowns. You might be left out buying the dip only to witness the prices falling even further.
4. Go In With A Robust Plan.
In an area as volatile as cryptos, the idea of having a robust investment plan grows manifold in importance. Though you may expect to maximize your assets by betting more and more, this is one of the poor ways to build a house.
If you’re just beginning your crypto career, having well-defined entry & exit points might be a better approach. That said, never ever invest in your intuition as then you would only be chasing values!
5. No To Making Easy Money
There’s nothing easy in this world, especially making money by trading any financial asset. And anyone who says the opposite might be tricking you into making your life’s biggest blunder!
Beware of falling into these sorts of scams:
Fake Coins
Fake bitcoin exchanges are everywhere. Avoid them at all costs!
With countless cryptocurrency options available in the market, telling which ones are real or not is quite a deal. And when you invest in fake ones, scammers simply steal your identity and, eventually, your hard-earned earnings. Beware of such scams by avoiding taking anyone’s word for it, as they sometimes pretend to be official sources.
Spoofing
It isn’t uncommon for scammers to buy new altcoin in masses. Faking the investments through skyrocketing the prices by hundreds of percent can inflate or deflate that crypto’s market value momentarily, triggering the ‘FOMO’ among investors.
And when such investors unwittingly rush to grab the action, scammers sell their shares at higher prices and cancel your orders. The result? They just disappear!
Tip: Be vigilant; avoid such “Pump & Dump Schemes” by being informed and opting for credible crypto options.
Imposter Websites
You were just following that solid tip from someone with robust expertise and still fell to the scamming by landing on a fake website? Surprisingly, countless sites on the internet are set up to resemble valid ones. So, if there isn’t any lock icon near the URL bar or no “https” in the website address, it’s time to think twice!
Even if that website looks identical to the one you wanted to visit, there’s the possibility you might be directed to another platform for payment. That platform may not take you to the previously researched investment.
Tip: Avoid this by cautiously typing the exact URL on your web browser and it’s better to cross-check it too.
There are still infinite ways some internet users might be trying to exploit your unsecured system. We suggest you delve deep into this subject to protect yourself before stepping into the lucrative crypto market.
Investing in cryptocurrency offers a lucrative opportunity for financial growth. Follow the above ways and make sure you reduce your room for error!
Willing to learn more about crypto trading rather than diving in headfirst? Check out the other resources on IXFI and avoid falling for the common pitfalls.
Disclaimer: The content of this article is not investment advice and does not constitute an offer or solicitation to offer or recommendation of any investment product. It is for general purposes only and does not take into account your individual needs, investment objectives and specific financial and fiscal circumstances.
Although the material contained in this article was prepared based on information from public and private sources that IXFI believes to be reliable, no representation, warranty or undertaking, stated or implied, is given as to the accuracy of the information contained herein, and IXFI expressly disclaims any liability for the accuracy and completeness of the information contained in this article.
Investment involves risk; any ideas or strategies discussed herein should therefore not be undertaken by any individual without prior consultation with a financial professional for the purpose of assessing whether the ideas or strategies that are discussed are suitable to you based on your own personal financial and fiscal objectives, needs and risk tolerance. IXFI expressly disclaims any liability or loss incurred by any person who acts on the information, ideas or strategies discussed herein.
