Cryptocurrencies are exploding in popularity, but many people don’t know what they are and how to use them.
This article will teach you the basics of cryptocurrencies so you can avoid making mistakes when investing or trading.
Here are the top 7 Crypto Currency Mistakes that are costing you money and how to fix them.
1. Not diversifying your crypto investments!
If you’re investing in crypto, then it’s best to spread your risk as much as possible. Don’t put all of your eggs into one basket. Even if you think that a single coin has the potential to increase 10x, there’s no guarantee that it will happen. If a coin doesn’t do well, then you can just move on and invest in other coins. It’s not like you need to wait a year or more to see a return on your investment.
We believe that we’re still in the early stages of crypto, and there’s still plenty of time to invest in many different coins. Even if you don’t have a lot of money to invest, you can still invest in a few different coins. It’s important to diversify your portfolio, and don’t just put all of your money into one coin.
2. Not using a hardware wallet!
When you put your money into a crypto portfolio, there is no teller at the bank that will hold your hand and make sure it’s all safe. The only way to ensure that your digital assets are protected is by using a hardware wallet. You may be tempted to save money on additional security, but if you do so, you’ll regret it later when hackers manage to break into your online account.
The Ledger Nano S is a hardware wallet that supports multiple cryptocurrencies, including Bitcoin, Ethereum, and ERC20 tokens. It’s small size makes it portable and easy for storage. The device can be used on any platform such as Windows, Mac or Linux. Furthermore it features an OLED screen which displays the transaction details.
3. Keeping coins on an exchange that you don’t control the private keys to!
Do you keep your cryptocurrency on an exchange? If so this could be costing you money in fees. The best option is to move your coins off of exchanges and into a wallet that you control the private keys for.
The Bitcoin exchange hack of 2017 is still fresh on everyone’s mind, and it shouldn’t be. The real story behind the hack is that a hacker found a vulnerability in an older version of the Parity wallet software which allowed them to get away with $30 million worth of Ether.
4. Storing coins on an exchange where they can be hacked or lost!
The crypto market is still very young and there are many people who have just recently entered the game. For new crypto investors, a popular mistake has been storing coins on an exchange where they can be hacked or lost! By removing your coins from exchanges you gain more control over your investment portfolio which allows for better security and peace of mind.
Hiding your crypto coin on an exchange is like hiding your money under your mattress. While it’s not as risky as keeping cash in the form of dollar bills, it can be stolen, lost or forgotten. Storing cryptocurrency wallets are essential to protect digital currency from theft and keep them safe from being hacked.
5. Not having a backup plan for your coins!
Cryptocurrency is always a risky business but you don’t have to leave your money at risk.
It’s no secret that cryptocurrencies have been on a roller coaster ride for the past few months… The markets have seen some serious dips, but it seems like there is always something to report about how the price of a crypto currency has gone up or down.
One day you’re hearing about how a major corporation is accepting crypto as a form of payment, and then you hear another story about one country banning cryptocurrency altogether. There are so many things happening in the crypto space that it can be hard to keep track of everything.
The good news is that the cryptocurrency market is still very young, and it’s constantly changing. There are new opportunities popping up every day, and there are new companies entering the space all the time.
6. Not setting up 2FA on your exchange accounts!
When it comes to cryptocurrency, the security of your funds should be a top priority. One way to make sure that you have a secure account is by enabling 2FA on your exchange platform and having strong passwords. The majority of exchanges offer this type of security feature and will not let you access your account without it.
7. Not using a password manager to secure your passwords!
Security breaches are a huge problem. Hackers have stolen over 1 billion passwords in the last year and that number is growing by 20 million every month.
So, should you be worried?
Yes.. Hackers, cyber criminals and even online spies know that passwords are the key to our digital lives. So they go after them with everything they’ve got. And, unfortunately, they are very good at what they do!
So… If you are not using a password manager to secure your virtual currency, you are leaving your investment on the table for a potential hack.
To be successful in the crypto currency world, it’s important to avoid making these common mistakes. Taking the time to learn from others can save you a lot of money and frustration.
If you enjoyed this article, please share with your friends on social media or comment below. We’d love to hear about any personal experiences you may have had that relate to this topic.