Just when everyone thought that Bitcoin was down and out for the count, the biggest cryptocurrency of them all managed to jump up by nearly a thousand dollars on April 2, in less than a day, once again cementing the fact that cryptocurrencies are volatile and profitable even today, if you have the understanding, experience, and intelligence necessary to deal in them.
Brian Kelly has predicted that BTC/USD prices could touch the $6,000 mark next. Amidst all of this, it can get even more confusing while figuring out if and how one can profitably invest in cryptocurrencies. For starters, you need to avoid the following mistakes because they can ruin your chances of capitalizing on the cryptocurrency market that is once again on the rise in 2019.
Not Using a Coin Tracker
One cannot rely on news updates and coin charts anymore in 2019. if you are serious about trading in cryptocurrencies, you need to check a cryptocurrency tracker that updates in real time and refreshes automatically to reflect the exact market capitalization value, prices of the cryptocurrencies and offers various other comparing and tracking tools to help you make the best trades every single minute. In fact, you can use Coins.Live to even set up your own unique crypto profile tracker for free. It will let you stay in sync with all your crypto transactions and crypto investment types.
Buying Cheap Coins
Not all cryptocurrencies are created equal and some are extremely cheap to invest in. More often than not, they are not good investments at all because due to their low price and huge supply, it is more likely that the price will go down, rather than going up.
Not Factoring in the Fees
Every crypto exchange will charge a fee on your transactions, which will cut into your profits. Be aware of the fee structure they have and make sure you are profiting, in spite of the fees. Beginners get a nasty surprise at times when they realize that the profit they thought were making is non-existent because they are paying more fees than they are profiting! Try a different exchange with lower rates if that is indeed the situation.
Ignoring Price falls
In the very introduction, it was mentioned how Bitcoin is on the rise again, and what you will notice is that people have already started to buy the cryptocurrency in large amounts to make the most of the situation. Unfortunately, it’s a bad decision and one that veteran investors seldom make. The real investors always buy prospective coins when they are at their lowest because they know at some point or the other, the price will rise again. Of course, that doesn’t always happen, but that element of risk is what will make you rich someday. Buy low and sell high to both reduce your investment costs and increase your chances of making a killer profit.
Mistaking Cryptocurrencies as Being Same as Shares
Because of the similarities between the two, a lot of beginners make the mistake of thinking that they are almost the same. In reality, they are not the same; it’s just that both shares and coins can be traded via an online exchange to make profits. There are plenty of fundamental and practical differences between the stocks and the coins, but consider the following two to get an idea.
- A company issued ICO may go down in price, even if the company profits, unlike shares
- By buying cryptocurrencies, you do not gain a “share” of the company in question, therefore, you don’t get dividends either
Take the time necessary to observe the market, read about cryptocurrency trading, and acquaint yourself with practical experience through minor investments first. Take it one step at a time and you won’t make huge mistakes like some of the ones we just discussed.
