Bitcoin is a lucrative investment but if you are not knowledgeable enough, chances are, you will run into a lot of complications and issues with it. Here are 5 common bitcoin mistakes you have to avoid.
1. Buying without understanding it This is a very common mistake that is synonymous with Bitcoin. Most people tend to get overexcited at the prospect of acquiring bitcoin that they rush to make a purchase without fully understanding how the whole system works. Something like this often spells disaster because buying bitcoin without understanding the basics of the bitcoin market is risky as the overall market is volatile. Take time to understand everything about bitcoin including blockchain itself before making your first purchase.
2. Following Wrong Advice If you browse through Social Media Sites or even the internet in general, you will come across a lot of people priding themselves as Bitcoin experts. It’s worrying really. Be careful who you take advice from. One thing you don’t want to do is taking up a piece of advice and then figuring out after some time that the advice you took was all wrong and led you to disaster.
3. Diversify Yes, Bitcoin is a great and seemingly lucrative investment if you want to delve into Cryptocurrencies. But, do you know that there are over 2250 other lucrative cryptocurrencies that you can consider investing in? Don’t put all your eggs in one basket. Research things like dash, ethereum or even Bitcoin cash and find out how you can make money from them as well.
4. Having no investment plan Keeping your bitcoin in your exchange’s wallet is often considered an investment as its value increases over time. If you want to go at it, go at it with a clear and well defined investment plan, don’t just be random about it and think that profits will come within a few days.
5. Stay Informed Once you make your first purchase of Bitcoin, you will be officially a part of the market. And in any market, the secret to success is staying informed. You need to stay informed about whatever might be taking place in the bitcoin market if you are to succeed.
One other mistake most newcomers make is expecting to make unrealistic profits within weeks of dealing in cryptocurrencies. Keep in mind is that things do not really happen so fast. Making profits in large margins will require lots of patience on your part. Look deeper into corporate news and reports, understand the asset you trade, diversify your portfolio and always do your own search. Good luck!