8 Mistakes to Avoid When Buying and Using Cryptocurrency for Online Purchases
The craze of cryptocurrency among the people is growing like a fire and this fire seems unstoppable. Every new investor is looking forward to joining this trade market. Whenever a beginner steps into the crypto world, he is likely to make certain mistakes which we will discuss in this article.
You can learn from these mistakes and try to avoid them while buying or using crypto coins for online purchases.
1. Not giving priority to security
Security is one of the most important factors that you need to consider while purchasing bitcoin. It is because if by chance you lose your crypto coin, you probably will not get it back. No doubt that technology has made everything easier for us. But at the same time, the threat of hacking is also increasing. You have to be very careful while choosing the crypto exchange to buy BTC. It should provide you enough security to manage your wallet.
Always keep the private keys or passwords of your wallet safe. There are two types of wallets that you can use to store your bitcoin: cold wallet and hot wallet. Hot wallet is just like a wallet that you would carry with you and is less secure than the cold one. You can use it to keep a small sum of cash that can be used to trade. However, when it comes to a large number of Bitcoins, we would suggest you to get a cold wallet, which is a physical device. It is a bit expensive but provides more security.
2. Having short-term goals
Many investors make a mistake of considering cryptocurrency as a short-term investment. However, this is a totally wrong approach. If you have been following the crypto market for quite a long now, you must know about its volatility. Due to its volatile nature the prices keep fluctuating and it will not be beneficial for you to sell your digital coins when the prices are low. To wait for the right opportunities to buy or sell your crypto coins, you have to set long-term goals.
3. Purchasing any crypto coin
You don’t have to purchase cryptocurrency just because others are telling you to. If you do not want to waste your money, make sure to do some research about the different digital currencies. Find out which digital coins have the potential to grow in the future. Do not just buy any cryptocurrency. Buy the crypto coin that has the capacity to bring you profits and if not profit, then at least it must be widely accepted by the companies as a payment mode.
4. Not knowing how to read the crypto charts
To find the best opportunity when you can buy a crypto coin, it is essential for a person to know how to read the cryptocurrency charts. It helps you in understanding what is happening in the market. Keeping yourself up-to-date with the latest trends will help you know the right time to purchase the digital coins.
Knowledge is power and you should never step back from learning anything new. You can start learning to read these charts if you don’t know as of now. However, if you do not have time to do that, you can hire a third party company to help you with that. Check out immediateconnect.org to get the best crypto trading experience.
5. Not picking a reliable crypto exchange
There are numerous crypto exchanges available on the internet these days but not all of them can be trustworthy. While picking the right crypto platform for you to buy and use the digital currency, you have to ensure that it is safe and secure. Make a list of all the well-known crypto exchanges and then narrow down your list. For this you can start by reading the online reviews posted by users on each platform. If there are more negative reviews, then this can be a warning sign for you.
6. Purchasing cryptocurrency during a spike
Many investors believe that it is the right approach to buy crypto coins when their prices are rising. But this is wrong. Sometimes the prices of the cryptocurrencies will not continue to rise after a spike and there are chances of huge price fluctuations which can lead to huge losses. If you do not want to experience unfortunate losses, then you should never consider purchasing digital coins when their value is at the peak.
7. Forgetting the private keys
This is one of the most common mistakes that almost every investor is likely to make. When a person forgets the private keys of the wallet, then he is not able to access his wallet in which he has stored digital currencies. As there is no central authority or third parties involved, you cannot reach them to solve this issue for you. Keep the passwords and private keys at a safe place which can be accessed by you only.
Some people might think that they can reset the private keys just like the password of other sites but this is not possible. You cannot recover the private keys once you have lost them. Therefore, always ensure to remember your private key no matter what happens otherwise you won’t be able to get your crypto coins back.
8. Not researching before buying
We cannot emphasize more on this fact that you have thoroughly done the research before investing your hard earned money in buying crypto coins. Analyze the market to know about what’s happening in the market or about the latest trends. For this you can also follow popular podcasts where you will get a lot of news related to cryptocurrency. Another option is to follow famous personalities such as Elon Musk on social media who closely follow the crypto market.
To Sum Up
People are prone to making numerous mistakes while dealing with cryptocurrencies. They blindly follow the opinion of others and start buying crypto coins just because others are buying. However, this should not be your goal. You must have an objective set in your mind to ensure that you are on the right path. Check out the above mentioned mistakes so that you can learn from them and try to avoid them.