TOP 5 Things You Should Avoid Doing When Trading Crypto

Even during the crypto winter, the total market cap of the crypto industry stayed close to $1 trillion. During its peak period, it was estimated at $3 trillion. It is a massive domain that spans all continents. With several million active retail traders and investors, the financial crypto market is something that inspires awe in many enthusiasts of the digital economy.

With such hype, the industry attracts more and more laymen and people who are interested in diversifying their investments by foraying in the crypto market. However, it is still young and unregulated meaning that you will encounter many obstacles on your way to wealth and effortless transactions.

Some things are easier to avoid than others. We decided to put together a list of 5 things that you should never do when trading crypto!

#1. Do not think that we are at the lowest low.

Many people want to buy the dip and hold until the asset appreciates. If you are in for the long-term, any price will be your low. Bitcoin enthusiasts believe that BTC will hit $100K at some point in the future meaning that even buying at ATH ($69K) would have been a great deal in the long run. However, all cryptocurrencies are not Bitcoin.

BTC is indeed too big to fall, but coins like ALGO, LTC, ADA, LUNC, and many others simply do not have the same influence and importance as Bitcoin. When you think that there is no other way but up, take a deep breath and think again. It is possible that the lowest low that you are seeing is only the beginning of a true bear market.

#2. Do not fall for scams.

It is hugely important to never trust anyone in this industry of online trading. Decentralization is the dream of many enthusiasts, but it is also the main reason why the whole industry is unregulated. Many bad actors are trying to use all sorts of social engineering tricks to steal your tokens, credentials, personal information, fiat money, and anything else they can get their dirty hands on.

Use only trusted website, create two wallets (one for storage, one for transactions), and send money only after double-checking the address you sending to.

#3. Never go all in.

Another way of saying it is “diversify as much as possible and follow basic money management principles”. When it comes to investing money, having multiple baskets for your proverbial eggs is more than important. The crypto industry offers access to a wide range of digital assets including PoW tokens, PoS tokens, tokens issued by layer 2 networks, NFTs, and more. At the same time, some crypto exchanges are offering financial instruments like perpetual futures and options.

Do not invest everything in a couple of coins. Make sure that you have a diverse portfolio that will survive against all odds during market turbulence.

#4. Never forget your crypto key phrase.

There was a meme in the Bitcoin community that went like this: “not your keys, not your coins”. It means that you own your tokens as long as you have your key. You should always keep it retrievable but inaccessible for unauthorized people. Write your key phrases down on a physical carrier like a note or a plastic card and save it somewhere in a safe. Losing these keys means that you won’t be able to use them!

#5. Do not think of crypto as easy way to get rich.

Early adopters of Bitcoin and Ethereum as well as some memecoins like DOGE made millions and became rich, but it does not matter that everyone will. Opportunities for the same phenomenon are mostly depleted, but the crypto industry became more stable and reliable in the process of removing tokens that have that potential to either shoot to the moon or fall to the rock bottom.

Cryptocurrencies should be taken seriously and used as long-term investments that can be highly profitable. All you need to know about crypto news!

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