Through the years, there have been tons of crypto scams to which people have lost lots of money to. Asides from planned crypto Ponzi schemes, crypto holders and traders have lost a lot of money because they could not manage their crypto well. In this article, we’ll be taking a look at crypto mistakes and how to avoid them.
5 Crypto Mistakes and How To Avoid Them
1. Thinking Crypto is a “Get Rich Quick” Scheme:
Most people get into the crypto space because they think it is a quick and easy way to make easy money, but they’re wrong.
Because of this mindset, they do not have a rigid financial plan and are only focused on the money they expect to come out of it.
Knowing that crypto is not quick money firstly puts you on the right track to practicing patience and drawing up an actual plan throughout your investment.
2. Keeping Your Crypto Assets in a Hot Wallet:
There are two types of crypto wallets, the hot wallet and the cold wallet, and these wallets come with their private key. A hot wallet is a crypto wallet that is accessible online. These wallets are connected to the internet and crypto networks and are used to send and receive cryptocurrency and view your availability token balance.
Although hot wallets allow for easy transactions, they are more prone to be hacked. To be safe, it’s best not to store money you’re not comfortable losing in a hot wallet.
Cold wallets are physical devices that store your crypto offline. They can only be connected to the blockchain by using your private key. Cold wallets can store numerous cryptocurrencies, reducing your risk of getting hacked.
3. Forgetting Your Crypto Wallet Password:
This is actually a common mistake that many people have fallen victim to. there are thousands of people locked out of their cryptocurrency wallets because of this one major mistake. Lots of them have had to live with the knowledge that their accounts contain the equivalent of millions of dollars worth of coins that they may never have access to ever again.
Always make sure you remember your passwords and have a secure way of recovering them.
4. Not Having Long-Term Financial Goals:
It’s crucial to have a particular, actionable set of goals when it comes to crypto trading.
If you do not have any long-term goals, you may be influenced by fickle market sentiment, mostly based on FOMO. You may start buying or selling just because everyone else is doing so, even if it’s not necessarily something you might want to do, just yet
The opportunities that come your way will be more selective if you have long-term goals.
5. Sending Crypto To The Wrong Wallet:
This is another common mistake that many people say can never happen to them, but it’s actually a lot more common than people think.
When sending crypto from your wallet to another, always make sure you have the correct wallet address. Unlike traditional bank transfers where transfers can be reversed, If you send crypto to the wrong wallet address, it cannot be retrieved and it will be lost forever.
Most crypto exchange platforms have the “copy to clipboard” option to make it easier for you. In Breet App, you have the option to copy to clipboard or have the second party scan your QR code.
Although there are lots of mistakes that crypto traders make in their investment journey, beginners and even experts, this is a good start to avoid the most basic errors, which will cost you a lot.