We’ve all seen the crypto influencers on social media with their Lamborghini in the driveway and it gets us excited. Could we be the next Bitcoin millionaire?
The answer is yes, of course. But, with a bit caveat. You have to remember that the guy with the Lambo probably made a lot of mistakes. And if he learned from them he got better and was successful.
There are some mistakes to avoid at all costs, however, so you can make sure that you don’t bow out of the game before you even really get started.
In this article, I will go over several of the mistakes to avoid so you can go on to find your dreams through crypto trading.
1. Keeping Bitcoin In A Vulnerable Wallet
The beauty of trading in cryptocurrency is that you can be anywhere in the world and have access to your money. You can buy Bitcoin in Colombia and spend it in Canada.
Unfortunately, the wallet is also the weak link in the whole blockchain ecosystem if you choose the wrong one. The blockchain cannot be altered in any way so all of your transactions are safe there. You can’t be hacked and have your Bitcoin disappear.
An unsecure wallet, on the other hand, is vulnerable and is where most Bitcoin robberies happen. Make sure to either use a very secure wallet for your transactions or to keep it in a cold wallet which is offline so it can’t be hacked.
If you were to be hacked after amassing your fortune, there is nothing that can be done about it, unfortunately.
2. Not Learning The Technology
It’s easy to get lured in by the thought of how much money you can make when trading bitcoin. But, you will do better when you understand the apparatus that makes it work and study as much as you can about the subject.
You don’t have to get too technical about how the blockchain works, but a good, solid understanding of it will help you see opportunities when they present themselves. Instead of just following trends, your knowledge of blockchain will allow you to lead.
The same goes for the actual currencies. It isn’t just about the value. Many coins serve a specific function so understanding what the coins can do will go a long way to spotting a trend as it’s happening since you’re looking out for it.
3. Getting Emotional
It is only natural for our emotions to get the best of us when we make a decision. This goes for making purchases, relationships and even in the workplace.
It can be a very expensive mistake to use your emotions to influence your decision making. It is the same thing when a gambler won’t walk away from the table on a losing streak because they want to try to make their money back. AT that point they aren’t making a good decision.
The same goes for trading. You have to be unemotional and know when to walk away. Buying at the right time has to be done by understanding the market and not because you have a gut feeling.