Crypto Tips to Keep in Mind and the Mistakes to Avoid

Cryptocurrencies need to be taken seriously and the notion that they are a get-rich-quick method needs to be dispelled. In the traditional way of saving money, we prefer to deposit money through financial institutions and banks. If the address is wrong, we may contact customer service and the transaction will be reversed.

Choose the strategy you are most familiar with.

With cryptocurrencies, you can use various techniques to your advantage. However, you should choose the most convenient method based on past experience. Day trading requires a higher level of expertise and experience in reading charts and market forecasts. On the other hand, HODLing doesn't require any special understanding because all you have to do is get coins and wait. So it all depends on your previous knowledge and willingness to learn.

Understanding Volatility

Cryptocurrencies are inherently volatile, which means their value fluctuates wildly. This is seen as a great opportunity to benefit from investors. When you grasp the nature of volatility, you can develop a more effective investment plan. Also, it is best to be mentally prepared for price fluctuations to avoid excitement or shock. When it comes to cryptocurrencies, be prepared for anything!

Avoid scams by doing your own research.

The internet is known for the opportunities to make money and for the numerous scams and hacks that occur over time. Many people, including well-known celebrities, have called cryptocurrencies a scam from the start. Scams are now manifesting as "investment opportunities" in the cryptocurrency space.

When you wake up in the morning, your inbox may be flooded with legitimate-looking offers, but they're scammers to take advantage of unsuspecting victims. They may suggest investing in "real cryptocurrencies", but this is a scam.

One of the most famous cryptocurrency scammers is OneCoin. Bulgarian Ruja Ignatova believes the coin is completely legal and has attracted $4 billion in investment. Authorities have determined that this is a Ponzi scheme. So be careful, don't rush, do your research and continue your trading journey.

Take away your profits

If you've been hoarding wealth for a long time and find that you can make enough profit, don't hold on for too long. You seem to be in a hurry, but if you win 600% of the time, for example, then you have no reason to wait. If you continue to hold HODL after making 600% gains, you may overdo it because you never know when the cryptocurrency will drop, leaving you with no profit. In fact, you could lose all your money.

Fight for the best time to invest

This strategy is also known as the "buy low and sell high" rule. When it comes to cryptocurrencies, the most important component is investing at the right time. Despite some randomness, people who follow the latest news always know when to buy cryptocurrencies.

（Writer：Charles Ouko）