Investment Tips to Avoid Losses in Bitcoin and Crypto Market
Bitcoin or Cryptocurrency is a high-risk investment and its prices can unpredictably increase or decrease. There is a saying: “Never invest in Bitcoin more than what you are ready to lose”
Many people follow the quick rich approach in cryptocurrency market and they ended up losing their money either in scams or in the wave of price volatility.
The Bitcoin-related facebook groups and other social media channels are flooded with “Get Free Bitcoin” types of scams. They target the greed of newbie investors and demand few Bitcoin to join their program. Many people lose their hard-earned money in these types of Bitcoin frauds.
It’s very important for all crypto followers to understand the cryptocurrency market and its elements. In this post, we will discuss the common mistakes of newbie investors and important tips to avoid losses/scams in Bitcoin investment or alternative Crypto market
Be a Smart Investor – Tips that will Help You to Reduce Risk in Crypto Investment
Know the Market – Before you start to invest in any cryptocurrency, ICO or scheme, read and analyze every important aspect about the crypto or ICO
Never invest your savings that you can’t afford to lose
Do the fundamental analysis before investing – Properly understand the potential and real uses of your planned crypto investment. Never invest in what you can’t understand
Make a plan and start investing in small amounts.
Have Patience – Usually, holding is the most profitable strategy for Bitcoin and other popular cryptocurrencies unless there is an exceptional situation.
Never treat your crypto investment as a game of getting quick rich– Don’t monitor the Bitcoin Prices on the daily basis unless you are a day trader. If you Track prices frequently then it will become an obsession.
Control Emotions (Use your Intellect): Always follow your plan and intelligence, never get emotional with price fluctuations. You can’t use your intellect with greed or fear. Usually, selling at higher prices and buy back at lower prices is a risky game and you may face losses in this emotional trap.
Use These Techniques to Avoid Fraud and Losses in Crypto Market
Add Two Factor Authentication to your all crypto related accounts
Never Keep your Bitcoin at an exchange website or free wallets, move it to your own wallet – You may lose your Bitcoin in case of hacking or similar situations as it is not regulated.
Never disclose your recovery phrase to anyone: Recovery phrases are 12-24 word long seed words which are used in setting up the crypto wallets. Keep it as secure as possible.
Get information from reliable sources, be aware of fake and manipulated news sources