4 biggest Cryptocurrency Mistakes to Avoid in 2024

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When you decide to invest in cryptocurrencies, you need to develop and establish high-quality strategies that will help you be successful on the market. As we know, even the most experienced traders and investors can make mistakes that result in money waste and losing the crypto funds, because they weren’t careful enough and didn’t know how to protect themselves.

This market can be pretty volatile because in one moment you have almost everything you ever wished and wanted, and the next day the same fund has a low value and you don’t have anything. Crypto traders need to be aware that there are vulnerable spots in the networks and experienced hackers can steal their savings if they don’t move to the digital wallet soon. Many investors don’t follow the stocks and are holding to their inner voice, that very often is right, but our guts can make wrong predictions too. Following the crypto trends is important, especially after the Bitcoin halving in May this year, and according to cleverdude.com, you need to follow the Bitcoin price rise, the hash rate, and the way miners and investors save their crypto money.

Beginner traders and investors are more vulnerable to scams and money loss, and they must be aware of the potential risks this market has, and understand very well how the blockchain network works. Another trader’s experience is sure very valuable, but every potential trader or investor needs to research the market, read a lot of studies and articles, and establish a personal opinion and strategy. This is a very risky place with a lot of possible mistakes, so if you plan to invest in cryptocurrencies, you must be aware of all of them, including:

1. You use only one source to get informed

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Like we already mentioned, you need to be completely informed about every aspect of the crypto market, the potential risks, and the benefits of trading and exchanging. Social media takes a major part in this, but you need to find a few relevant sources that you will read and study every day. Don’t base your opinion on social media content, pictures, and videos. You can even read some books and watch movies related to this topic, so you can learn what you need to know, before even thinking to join this huge network and invest your money blindly.

But also, you shouldn’t exclude social media as a source. There are a lot of real people who share their experience and help the beginners to understand better how the cryptocurrencies work. Some of them even became crypto-celebrities and influential, they are holding meetings and conferences, and encourage young people to learn more about the cryptos, because according to them, one day, we will use them the same as the fiat money. You can even sing up for their free or cheap courses and learn the basics. That will help you develop a crypto strategy on your own.

2. You don’t have a plan B for risky situations

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Every market is risky and the investors always need to have a plan B, if plan A didn’t work properly. If you want to make a profit from the crypto market, you need to understand how it works, but also to develop a crisis strategy that includes all the possible risks. We all hope that we wouldn’t need to use that second or third plan, but it’s always good to have them, especially when we know how the cryptocurrency rates fluctuate every day.
It’s normal to have a profitable strategy, but risk management is also important in every business. That includes storing your crypto coins, saving them, having a backup of your digital wallet, and staying away from trades that seem too good to be true (because often they really are too good, but also not true).

3. Not understanding how the cryptocurrencies work

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It’s not enough to understand how Bitcoin or Litecoin works. Even if you are not interested in other currencies, you need to keep in mind that they have “relationships” between them and that their rates depend on one to another. If you study the market carefully, you will see how the Bitcoin has a great role, but also how the other currencies like Ethereum or Litecoin are important. You will see that there is a pattern in their ups and downs, that clearly shows how they are connected. Just like the real money, the cryptos are connected and related and if the Bitcoin’s price goes up, almost every other currency will go up in the same period.

This is especially important if you want to invest and trade with altcoins. Following the Bitcoin’s worth, you will be able to successfully predict when it’s the right time to invest. It may take a little time until you realize the pattern, but that will help you build a strong trading and exchanging strategy that will result in great profit.

4. Not using legitimate trading platforms

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There are a lot of trading platforms on the Internet, maybe over a few hundreds. Finding a legitimate one can be a challenge. Some of them will trick you through the personalized ads to sign up without a deposit, assuring you that high fees are normal. It’s expected that different platforms will work in different ways, but the trusted and legitimate ones will ask for some deposit, something that is normal and will have all the trading fees clearly listed in their tutorial or manual.
Also, if you see that the platform is changing the fees every day and offering some suspicious deals, you may need to consider moving the crypto money to your wallet and migrate to another trusted platform that won’t change the rules every minute.
The most important thing the beginners need to know is that this market is changing every day and they need to stay up to date with everything new, so they can avoid unpleasant situations and losing money. That is why every potential investor needs to be aware of the benefits of crypto trading, but also to the potential risks and possible mistakes that are often made.