It is precisely in this year where cryptocurrencies are taking off, and with them many hundreds of investors and individuals are following their behaviour closely, yet they find themselves with a whole new world full of opportunities, and uncertainty.
It is easy, though, getting into the cryptocurrencies always-growing flow. It seems for little investors like a huge chance to get real cash really quick as exchange markets show a good behaviour for major crypto coins almost every day.
Bitcoin keeps going up staying -by the time this article is written- just before the $5,000 wall. Same for other cryptocurrencies as Ethereum, with its main Ethereum coin stabilized in $300. Both currencies have experienced a never-seen-before growing in just this year 2017.
That is the reason why individuals, when they see these figures, become kind of a crazy in going straight to invest in cryptocurrencies. One of the problems is most of the investors see cryptocurrencies as an easy way to get cash, “real” cash. The cryptocurrency world, for them, is just a way, a path, to obtain physical currencies like Euros or US Dollars.
Even if that is not the real purpose of cryptocurrencies, it is interesting how business man all around the world and individuals are paying their attention in their behaviour and, therefore, invest in those digital coins.
Here are some tips about how to avoid losing all your savings or ended up with nothing but a few decimals in our digital wallet, according to expert John Creasy:
Not #DYOR (Doing Your Own Research)
Basically, cryptocurrencies have their own fluctuations and most of them are volatile. They need to be understood as we are talking about a high-end invest products.
As John Creasy says, “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.”
Don’t start mining expecting big profit
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.
Lack of patience
Cryptocurrencies experience strange behaviour almost every day. They go up early in the morning and by the time you go to bed they have lost half of their value. That volatility can make ended up in a feeling of a rush when buying and selling is up.
John Creasy had a similar experience with this. “Generally speaking, the patient are the most rewarded. For instance, I gained 46,000% growth by just holding my Decred for two years. Had I sold when it was worth $0.20, I would have lost around $18,000.”
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.
Not holding your private keys
This may be the largest mistake in the crypto community to date. Private Keys are, as it say, your way that opens or closes your e-wallet. Normally is a long random number provided to every wallet specifically.
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.
Not keeping hard copies of everything
It is a big mistake not keeping records of all transactions and security keys we hold. This is not about keeping in the computer, as it can be compromised but printing them off and hiding in a drawer. It may sound old-style but it works when the things go wrong.
These are just a few mistakes that must be avoided when proceeding in the vast world of cryptocurrencies. It is important too to find a trustworthy community that can help with the doubts that may appear.
Cryptocurrencies are possible thanks to the community itself, who look after them and make them possible.
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Hernaldo Turrillo is a writer and author specialised in innovation, AI, DLT, SMEs, trading, investing and new trends in technology and business. He has been working for ztudium group since 2017. He is the editor of openbusinesscouncil.org, tradersdna.com, hedgethink.com, and writes regularly for intelligenthq.com, socialmediacouncil.eu. Hernaldo was born in Spain and finally settled in London, United Kingdom, after a few years of personal growth. Hernaldo finished his Journalism bachelor degree in the University of Seville, Spain, and began working as reporter in the newspaper, Europa Sur, writing about Politics and Society. He also worked as community manager and marketing advisor in Los Barrios, Spain. Innovation, technology, politics and economy are his main interests, with special focus on new trends and ethical projects. He enjoys finding himself getting lost in words, explaining what he understands from the world and helping others. Besides a journalist, he is also a thinker and proactive in digital transformation strategies. Knowledge and ideas have no limits.