Top 10 Mistakes Newcomers Make

BitExplorer

The Top 10 Mistakes Crypto #Newcomers Make

Here, for your #pleasure, is a list of the #ten #mistakes every newcomer to #crypto should avoid like the plague.

1. Not DYOR (Doing Your Own #Research)

At the end of the #day, you are the one using your hard-earned cash to purchase cryptocurrency. If you don’t understand the #product, or the value, and you’re only listening to “experts” on #Medium,Twitter, or Slack who tell you when to #buy and #sell, you’re going to get in big #trouble and lose a lot of #money.

“If you rely on someone other than #yourself to buy #crypto, you also have to rely on them to know when to sell.” Don’t be a #noob. Do your own #research.

2. Don’t start #mining expecting big #profit

It’s true, the #original miners of Bitcoin and Ethereum are most likely now multi-mega #millionaires. It may be tempting to go out and #buy your very own rig to start getting “free #crypto” ASAP, BUT DON’T DO IT (without #DYOR first).

The #reality is that mining takes up loads of electricity — so unless you can get ultra cheap/free electricity, #mining is simply not worth it — unless you live in Siberia and own a massive #warehouse that can store hundreds of #rigs. Even then, it’s probably best for newcomers to avoid #mining.

If you really want to get into that sort of thing, consider to go for a Cloud Mining #Company.

3. Lack of #patience

We have to #admit that this one can be a toughie, especially if you keep up with crypto #Twitter at all. We are inundated with “OMG #HUGE PUMP BUY BUY BUY” or “Welp, looks like BTC is trashed, better #sell.”

While this info may have some #merit, it is physically impossible to keep up with it all, and, #generally speaking, the #patient are the most #rewarded.

This doesn’t necessarily mean no #gains can be made from short term trading. Quite the #opposite is true. But if you do decide to #trade short term, have a plan, and stick #patiently to that plan.

To quote Warren #Buffett, “the stock market is a device for transferring money from the #impatient to the patient.” #Crypto is similar to the stock market in this #respect.

4. #Selling when it’s “high enough”

“It’s never to high #HODL.”

You never know how #valuable a certain token will get. If you bought Ether when it was #worth about $ 8.00, you might have been tempted to #sell when the value reached $ 100. You would have #regretted that badly.

It’s important to make a plan for #selling your crypto. You must have an #end-game, and you must stick to it, no matter what. Was it s#tressful watching my portfolio lose ~$10k in 36# hours? Of course. Did I sell? #Absolutely not.

5. Not #holding your private #keys

This may be the largest #mistake in the crypto community to date. If you’re #unfamiliar with what your “private keys” are, or what #types of wallets you should be using, check out our other #articles under “Knowledge”.

Hundreds of millions of #dollars have been lost because #people entrusted all of their crypto to an exchange that was compromised, or a #wallet service that crashed. Always hold your #keys.

6. Failing to find a #good community/s to learn from

Not finding a good #community from which you can gain experience is a #mistake that should be avoided in the crypto world. The #BitExplorer community is the basis to help with #questions and to avoid mistakes. We recommend to join the #Telegram BitExplorer #channel.

7. Sending to the wrong #crypto-wallet in an #exchange

This is a technical #mistake that a ton of people do# pretty often, and it’s easy to fix.

#SLOW #DOWN.

Double-check that the #exchange wallet you’re sending funds to matches the t#oken you’re sending. Don’t send #BTC to an #ETH wallet. Don’t send OMG to a CVC #wallet.

It may be ok to send multiple #tokens to MyEtherWallet as long as they’re #ERC20, but it is NOT ok to do that on exchange #wallets. Don’t lose your crypto. Send to the right #wallet.

8. Not keeping #hard #copies of everything

Let us be very #clear here. We´re certainly not advocating you keep a Word doc with all your #passwords #stored on it. That isn’t a hard copy.

What we mean here is that you write down all your #passwords, private keys, etc., p#rint them off, and store them somewhere #secure. This way, if your computer should crash, or get stolen, or c#ompromised, you can restore all of your #crypto onto another device.

9. Not using #2fa or saving records of the code

We totally understand that #exchanges can be a #necessary evil. However, that does not #excuse you from enabling two-factor #authentication whenever possible, and saving the #restoration code somewhere offline.

There isn’t #customer support in most cases of the crypto #world whenever you neglect to back up your two-factor #authentication. So please, do that.

10. #FOMO (Fear of Missing Out)

FOMO #haunts us all. Thoughts like “If only I had got into this great ICO.” We all too often #fear that we miss great #opportunities. Do not worry, they will come back.

Reign it in. Realize that there are new #opportunities in the crypto world every #single day, and you’re better off just #DYOR and telling FOMO to leave you #alone.

So there you have it. #Ten mistakes every crypto #newcomer should avoid.

We hope one #helped you or one will help you in the# future !

This website uses cookies to improve your experience. We'll assume you're ok with this. I love cookies Read More

Privacy & Cookies Policy