Bitcoin is the future. This is an undisputed fact. The massive boom in the price of Bitcoins has attracted hundreds of thousands of new users towards the cryptocurrency markets.
The first thing you have to keep in mind is that you are taking a risk!
Yes, the markets are very lucrative. What was just a few dollars at the beginning is now over $32,000. There’s a massive return if things go well.
However, the fact of the matter is that there is a major risk in investing in cryptocurrencies. The price might go down at any point of time. If the markets crash, the falls might set you back by a significant amount!
Invest only what you are willing to lose. Don’t put in your life’s savings into the markets, but only a portion of your income which you are ok with losing and it won’t hurt you even if it doesn’t give any returns.
Besides the drop in value, there are a number of other risks such as exchange shutting down, government policies changing, among many others.
Exchanges are also subject to getting hacked and users can also be phished if appropriate safety measures are not taken.
Summarily, to help crypto newcomers avoid classic beginner’s mistakes, we have compiled a list of the top twelve do’s and don’ts of investing in bitcoin.
- Always begin with a small amount.
- Note down every piece of information, especially your private key.
- Keep track of the exchange rate and prices.
- Memorize your bitcoin wallet password.
- Carry out an identification check on every buyer/seller you trade with.
- Keep your OS updated and run a virus scan to ensure wallet security.
- Keep withdrawing bitcoins frequently to become familiar with how transactions take place.
- Don’t reuse wallet addresses.
- Don’t expect to get rich overnight when investing in bitcoin.
- Don’t leave money at an exchange.
- Don’t trade with anyone having a low feedback score.
- Don’t store all your funds in one wallet. It is a welcoming sign for hackers.
- Don’t go roaming into any scam sites or the dark web.
- Don’t lose or forget your private keys.
- Don’t trust an unreliable device or program to generate your wallet keys.
Written by: Shola Ayeotan