In the last year, Bitcoin has reached new highs. Many first-time investors are jumping on the Bitcoin investment trend in the hope of changing their lives for the better.
Unfortunately, with so many first-time investors getting involved, people are making a lot of fundamental Bitcoin investment errors. So what are these errors, and how can you avoid them? This article tells you everything you need to know.
1. Thinking You Need to Fully Understand Blockchain
One big mistake people make when investing in cryptocurrencies is thinking they need to fully understand blockchain technology. If you want to invest in major coins such as Bitcoin, you don’t need to know how the underlying technology works.
2. Panic Selling
If you want to see a return on investment when buying and selling Bitcoins or other cryptocurrencies, you need to avoid panic selling. Panic selling is when you see the market starting to trend downwards, so you panic and sell all of your coins at a loss.
See, the market crashing might make you feel like you’re about to lose everything, but this is a normal part of investing. Bitcoin has crashed on many different occasions, but so far, it’s always bounced back to record highs later on.
3. Getting Scammed
It doesn’t matter how good your Bitcoin investment strategy is if you fall for scams. There are many kinds of scams out there when it comes to cryptocurrency. For example, phishing scams, in which scammers trick you into giving up your credentials, are very common.
Always take the time to research before making a decision. For example, if you want to use a Bitcoin ATM, check out some online information for the best BTC ATM before you buy.
4. Buying Into Hype
In the cryptocurrency community, there tends to be a lot of hype about certain coins. Quite often, the hype is based on misinformation or misconceptions. Take care to research any coin before investing. Don’t invest just because everyone else is.
5. Not Using a Secure Wallet
Another critical mistake is not correctly securing your funds. You need to store cryptocurrency in a secure wallet if you want your investment to stay safe.
The best wallet solution to use is a hardware wallet. This ensures your coins can’t be hacked. Leaving your coins in an online wallet at a cryptocurrency exchange is a bad idea because hackers could potentially steal your coins.
6. Believing in a “Sure Thing.”
One of the biggest mistakes you can make in any kind of investing is believing in a “sure thing.” People will often make grandiose claims about how a certain coin is sure to be a good investment, but the truth is that no one can ever know for sure which way the market is going to go.
Avoid These Bitcoin Investment Errors and Make a Profit
Wise investment in cryptocurrency like Bitcoin can earn you a lot of money if you avoid these fundamental Bitcoin investment errors. The key is to always make sure you do your research before taking action.
If you want to learn more about some other cryptocurrency-related topics, check out the rest of our blog posts.
Blockchain Australia can assist you with this further