Common Mistakes to Avoid When Trading Bitcoin

bitcoin

Bitcoin is a virtual currency invented by Satoshi Nakamoto. You either mine Bitcoin or buy through exchanges. One of the best things about Bitcoin is that it is decentralized and secured. As long as you don’t lose your private key to your cryptocurrency wallet, your coins will remain untouched and safe at all times. Trading Bitcoin can be rewarding if you know what to do. One of the most important things to keep in mind when trading Bitcoin is to avoid making the following mistakes:

Letting Your Emotions Dictate Your Decisions

Always stay rational when you’re trading Bitcoin. Greed can cause investors to have baseless and blind faith in a certain coin. Fear can cause them to leave a trade prematurely or not buy a coin when it’s ready. In other words, don’t let your emotions dictate your decisions when you’re trading.

Blind Trading

Never trade anything without a solid strategy. Always do your research first. Learn about BTC, trading strategies, and exchanges so that you can make informed decisions that will benefit you the most. Learn from errors and grow. If you made a mistake, just move on and don’t beat yourself up over it. But don’t make the same mistake twice. For more information you can visit here bitcoinevolution

Overtrading

Trading cryptocurrencies like Bitcoin is not an exact science. It’s quite similar to gambling, so don’t overtrade when you don’t have disposable income. Although you may gain a lot from trading cryptocurrencies, you can also lose a lot. So, you must not spend more than you can afford to lose.

Keeping Coins in the Cryptocurrency Exchange

Cryptocurrency exchanges have their own wallet, but it’s not the safest option. If you want to hold on to your Bitcoin for a long time, you should consider storing your coins in a cold wallet. There are paper wallets and hardware wallets.

Paper wallets are economically viable because you don’t need to spend anything to make one. It’s an offline cold storage way of saving Bitcoin or other cryptocurrencies. In this method, you have to print out your private and public keys on a piece of paper that you will then keep in a safe place. Since the keys are in the form of a QR code, you can simply scan them for your transactions. This kind of wallet is safe from malware and hackers.

Hardware wallets, on the other hand, are secure physical devices where you can store your private keys. The keys can’t be transferred out of the wallet in plaintext. Some of the most popular hardware wallets are KeepKey, Opendime, Coldcard, CoolWallet, and Trezor One. Hardware wallets can be used interactively and securely because it’s immune to viruses.  Most hardware wallets require the owner to connect to the web interface of the manufacturer. Although the web interface can’t steal the owner’s private keys, it can still trick them into accepting fake payments or spy on them.

One thing that you should always remember is never to buy a pre-owned hardware wallet. Hardware wallets can’t tell you if you have received coins and how many coins you have received. If your hardware wallet gets stolen or damaged, you don’t need to worry because it can be restored. As long as you have a backup of your wallet, you can gain access to your coins. Store the restoration info in a safe place that only you know about. The restoration info will open your wallet. So, if you have plans to share this info with someone, make sure that they are trustworthy. You should also transfer your Bitcoins to a new wallet if something unfortunate happened between you and the person you shared your private keys with. 

Conclusion

So, these are the most common mistakes that you should avoid when trading Bitcoin. If you can avoid these mistakes, you can definitely avoid major losses. 

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