Over the past few decades, our lives have been transformed by the Internet. We now socialize online, get our news online, manage our money and buy everything we need online. Thanks to technology we no longer have to bother with the tedious tasks of remembering and thinking. Unfortunately, this could lead to financial ruin when it comes to investing in bitcoin and blockchain technology. Here is a list of the most common Bitcoin mistakes and how you can avoid them.
Not Slowing Down
So many of us are used to sending and spending money online these days that we hardly think when we hand over our credit card to settle expenses. While this is fine when you are dealing with a credit card transaction that can be easily reversed, it’s not the case with Bitcoin. One of bitcoins features that make it unique is the fact that transactions are irreversible. This means that no matter how much you beg, once you send Bitcoin, it is never coming back. This is why you have to be extremely mindful every time you send or spend bitcoin.
Not Being Educated
Bitcoin and cryptocurrency are extremely hot right now. The problem with this is that the majority of the population doesn’t fully understand cryptocurrency and the blockchain. One of the worst things that you can do when investing in Bitcoin is allowed your strategy to be guided by the media hype or by a fear of missing out. It will be far better if you take the time to educate yourself with at least the basics of bitcoin, blockchain, and cryptocurrency.
As far as currencies go, cryptocurrency is a baby, and it still hasn’t found its footing. You have to be prepared for this volatility before you even think about entering the market. If you don’t then you will surely panic and buy when it’s high and then panic sell when it’s low and going down. Take the time to plan a long-term strategy rather than focusing on the daily changes in price.
Placing All Your Coins in One Basket
One of the most common mistakes made with buying, selling, and trading bitcoins is putting all your coins in one basket. If you are planning on investing heavily in bitcoin, you want to spread the coins out between several, adequately secured wallets. This way if one wallet gets hacked or lost, or you forget your password, you won’t lose all your bitcoins.
History has a habit of repeating itself, but if you keep these common pitfalls in mind when you start investing in cryptocurrency, you’ll be well ahead of the rest of the pack.