Cryptocurrency market is an attractive market to earn money easily and that’s why lots of people are interested in spending money on this market to gain quick profit . But we have to be very careful while investing as mistakes can cost you thousands of dollars. Here are the couple of thing we should be very careful while trading –
1. Lack of understanding/knowledge:
As a beginners in cryptocurrency market , many people invest in the market just a get quick profit without understanding whats going on in the market . So my personal advice would be to understand market carefully before investing in cryptocurrency . Before investing in any cryptocurrency go to website and read about goal of the currency and what is the future path forward .2. FOMO(Fear of Missing Out) :
Cryptocurrency market is very very unstable . So before investing I would suggest to make mind that those money you are investing can go either direction and you shouldn’t be panic about it in worst case . So invest as much which you can afford in wrost case situation. Also while market is going down don’t get panic and stay around . From my personal experience I lost so much money due to FOMO.3. Lack of planning:
Before investing , take time and do proper assessment (you are not too late the game) . I saw few people investing so much money alternate cryptocurreny with huge risk to gain quick profit . If you are lucky you may get lots of money else you may lose everything . So my personal advice , don’t put everything in risk instead of invest such a way that worst case you will be able to survive . I would invest 70% of my money in stable cryptocurreny with good future (like Bitcoin and Ethereum ) , 20% in mid risk (Lite coin , ripple, steem etc) and 10% high risk (new cryptocurrency). Also don’t try to trade too many alternate cryptocurrency if you are beginners . I will suggest to start with small amounts of one or two coins that seem legit, ate and potentially profitable. As one gains more experience, it is still possible to further diversify the portfolio and trade more currencies4. Use correct Exchange :
There are so many exchange sites available for cryptocurrency . Its very important to know which exchange sites are good . Couple of factors I use for my personal purpose- At certain point compare which sites are giving higher rates.
- What is the exchange rate ?
- Transaction time is very important
- Complexity of the exchange site
I found couple of sites like coinbase ,GDAX and Poloniex are good considering all above factor .