In the following article we want to introduce you to 5 common mistakes of new crypto investors.
Mistake #1: investing Too much money
Since crypto currencies have risen exponentially in recent years strong:
I wish I had kept my 1,700 BTC @ $0.06 instead of selling them at $0.30, now that they’re $8.00! #bitcoin
— Greg Schoen (@Greg Schoen) May 16, 2011
It is for newcomers tempting as much money as possible to raise the and this in crypto-currencies. This money is to raise and can work Extra hours, borrow up to be a complete house sale. Even if this may appear at first glance, lucrative, so you have to can keep nevertheless is always that the crypto market is not particularly liquid, unregulated (and partly also certainly manipulated) market, which is enormous, are subject to fluctuations. Fluctuations of +/-10 % per week or even per day in crypto not uncommon currencies. Larger crashes of up to 90% happen every couple of years. Someone has bad luck, invested just before a Crash and not be able to pay his loans back. Therefore, it may be tempting – but you should never invest more money than you are willing to completely lose. Another thing which is related and also important: take profit can be useful! Clearly, no one is the next Greg would be Nice, so someone has to be sold early. However, if the prices should be greatly increased, and the Portfolio has grown considerably in value – you should ask yourself the question, “Could I cope with the complete loss of the current value of my portfolio?” so someone may have possibly invested 1,000 (verschmerzbare) Euro and after a few years of a portfolio to the value of€ 100,000. The loss of€ 100,000 could now be of course very much pain full. Just when life-changing sums of money, you should think of, therefore, the take profits is very good. Another way to lose money fast is to trade, for example on Bitmex Margin. The profits are multiplied, but the losses. So even small price changes may have large (positive and negative) influence on the Portfolio value. Clearly, the may look first of all, lucrative, since you can multiply, for example, in the case of a 10% rise of Bitcoin Portfolio value theoretically. But on the other hand, a low volatility range then already to lose the Portfolio, and to be #rekt.
Liquidated long on XBTUSD: Sell 1,202,348 @ 6243.5 💯💯💯💯💯💯💯💯💯💯💯💯🔥⚡ ~ Triple kill
— RA (@BitmexRekt) October 29, 2018
Error #2: In pyramid schemes, “invest”
Wasa Wasa Wasa, dear friends of the daring investment.
One of the most well-known pyramid schemes in the crypto world Bitconnect was. So Bitconnect was the beginning of the year ranked #20 in Coinmarketcap Ranking, with a value of 426,56 $ per Coin. The value today? To find 0.00$ per Coin on Coinmarketcap even more.
Pyramid schemes always work the same: they promise investors often “safe” high yields that you could get nowhere else and pay them often to start with – however, it is the money of the future, new investors. The payment to the investors is financed by new investors. An exponential System that must collapse sooner or later. In the end, a huge game “trip to Jerusalem”, in which the last of the has Invested, before the System collapses and loses all of a sudden all of his money.
Bitconnect promised investors more than 40% return per month. They claimed that these profits were generated by a trading algorithm. You would have to send you Bitcoins and you this for a certain period of time borrow…
Obviously complete nonsense, but there are many many people fell for it. Or maybe you have thought that you will not catch it. But the tricky is: You never know when the pyramid system will collapse and if you will not be affected:
and then no one will help. Because pyramid schemes are banned in all German-speaking countries, legally anyway. So: hands off! When someone proposes an Investment, which sounds too good to be true, then it probably is not true.
Mistake #3: His Private Key, lose, give away/destroy/
Often newcomers understand the Benefits of Wallets wrong. Wallets hold no Bitcoin. The private Key holds your Bitcoin. And everyone has access to your private Key full access to your Bitcoin, and you can send at any time on his own account, and you if necessary. mouth. And back to the Bitcoin send when you are gone. The full control over your Bitcoin, you will receive only your private Key and your Seed Words. The Wallets are only a graphical interface which make it easy to interpret the private Key. But theoretically, nobody needs a Wallet. As long as you have the private Key, you can calculate everything by Hand.
Therefore, your private Key never give up someone. Created + Stores the Private Key in a secure way! Should your Private Key ever falls into the wrong hands it is said to be quick to respond. You have a new Private Key and create your Coins as quickly as possible from the compromised Private Key to the new Private Key* send.
You send Coins never directly to the PRIVATE KEY!
Sending Coins is usually the Private Key corresponding to the PUBLIC KEY!
You should not be aware of this loss threatens total!
Conversely, No Private Key, no Coins of course. And “Password reset” is not set. The guys from Wired can sing a song about it.
Mistake #4: saving His Coins on exchanges
As mentioned in mistake #3, above. Who has the private Keys, the Coins belong to. If you had purchased a Coin on a (Central) stock exchange, he belongs to you-technically – yet. Only if you have the Coins to one of you guys possession of a private Key/public Key Pair, sends it belongs to you.
As long as the Coins are still on the stock exchange the stock exchange in the trust. And Hacks happen, unfortunately, again and again. Some stock exchanges are pretty shifty and make a night out of the dust. And then it could see difficult or impossible to be your money ever again.
Many owners of the “Nano”-Cryptocurrency (formerly Raiblocks) had to learn this painfully, when it became known that the (former) crypto-stock exchange “Bitgrail” to Nanos to a value of about 170 million $.
Mistake #5: money in a fraudulent ICOs invest
Even if ICOs for many Fans of the risky Speculation can be very tempting, so it should be still aware of the risks involved, which may entail an investment in ICOs. Many ICOs are unregulated, and fraudsters have intentions. So it is that ICOs, after the Collection of money without a trace from the dust.
A Shit token-ICO startup called Prodeum just exits-scammed with millions of investor dollars and left them the following message on their site. #ICO #Crypto pic.twitter.com/5VzxFswcyn
— Ameer Rosic (@AmeerRosic) January 29, 2018
However, bad Gimmicks, lack of development, inability of the team or illegal activities, as well as simply bad luck can leave the project at any time to Burst. Often, it is really hard to the opportunities and risks really properly assess. Therefore you should select, if you want to invest, only ICOs, you will be seen as very trustworthy. And even then, you should adapt better to a possible total loss.
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