CRYPTOCURRENCY

Mistakes to Avoid When Trading Cryptocurrency

crypto trading

Cryptocurrency trading is an ideal way to make profits. You can buy and hold your coins as you wait for them to rise in value. This type of trade is usually conducted on an exchange platform. There are so many online platforms you can use to buy or sell cryptocurrency.

A perfect example is bitcoin evolution, one of the best auto trading avenues for cryptocurrencies. You should look for a more reliable platform that will grant you a smooth time in your trade. As a beginner, you are bound to make many mistakes when venturing into this type of trade. The following are common mistakes made by newbies you should avoid completely.

Failure to Research

Before starting anything new, you need to do your own research. At the end of the day, you are going to invest in cryptocurrency money that has been earned through hard work, and therefore you need to have a good understanding of what cryptocurrencies are and what your next steps may lead to. It is not enough to listen to friends or “experts” on the Internet who can “help” you drain your money.

Do a little research before entering the world of cryptocurrencies. You need to understand the above, and only then join the trade.

Lack of Patience

It is difficult to be patient, but patience and calmness must always be maintained. There will always be third parties or factors that push you to buy or sell, but if you are patient with your crypto coins, you will be rewarded. Short-term and occasional gains from trading are certainly good, but in general, you need to stick to a strategy and plan accordingly.

Sending Funds to a Wrong Wallet

This is a mistake people often make. To avoid this, you need to double-check the correctness of the address you decided to send funds. You need to make sure that you do everything carefully and slowly.

Not Using Two-Factor Authentication

While you may not like it, be sure to activate two-factor identification (2FA). This is to keep your account secure. You should also save your recovery codes offline so that you can unblock your account if something happens.

Not Having Private Keys from Your Cryptocurrencies

This clause concerns your coins’ security and the privacy of the data that provides access to them. You should always have your own private keys because wallets can crash, exchanges can be hacked, and your losses can cost thousands of dollars.

The Features of a Good ICO

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Before choosing to invest in an Initial Coin Offering, it is essential to find out a few factors about its performance. Many offerings are being set up almost every day due to the increased flexibility of various platforms. However, before you put your money into it, you have to be certain that it is worth it. As you will find out, some of them may be good investments, but others may not be the right place for you to put your money. You must have heard of people who made a fortune through investments in ICO, but there also are those who are counting their losses because of the bad choices that they made. So, what exactly should you be looking for? There are many crucial factors to be considered, but we have selected the following because they are the ones that are likely to make the biggest difference. On a side note, one can click here: for more information.

BITCOIN

Look at the team

You need to know the team that is behind the project before you make an offer. Usually, you will be looking for a team that is credible. You may want to deal with a team that is transparent and shares information about their operation. If you notice that there are too many grey areas in their operations, it could be an indication that they are trying to conceal some information. This is just one of the many red flags that will tell you if the investor should be avoided. Once you found a good team, you can move on to other factors.

The coin supply

CRYPTOCURRENCY 2Looking at the size of the coin supply will also help you to determine its suitability. Dig further to find out the size of investor’s tokens. This will help you to determine if the coin can stand the test of time. Factors such as inflation can also help to judge whether it is a good investment. The most important part when it comes to coin supply is to find out how easy it will be for the coin to be manipulated by the investors and its founders. Usually, the big investors can dilute it meaning that the value will go down.

The roadmap

Take a few moments to look at how the team plans to implement their project. This should be crosschecked with the timelines that have been provided in their whitepaper. If they are consistent, and they reflect a realist growth path, it is an indication that the ICO is worth investing in. You need a team that has everything well planned out. This is not something that you can go through by trial and error. From the beginning, there should be a clear indication of what will be achieved at every stage, and what will be done to achieve it.

CRYPTOCURRENCY

The best Initial Coin Offerings also provide proper communication both internally and externally. It is through this communication that investors can know what they should do with their investments and therefore, it is for the good of all the parties involved.