What to avoid while trading in cryptocurrency?

In the world, there are two things on the tongues of people right now. One is Covid and second one is Cryptocurrency. One side Covid is slow downing the biggest economies, while crypto is trying to boost it back from this pandemic.

There are many differences between these two things but one thing is in common and that is a risk and negligence. If you take some precautions then you will avoid huge lose.

Cryptocurrency is the quickest platform to earn huge profit in limited period of time. In todays world, investment and trading over crypto has increased 100 times.

The key reason for this boost is the decentralised nature of this currency. It is not authorised by any government and hence there is no delay in its transaction. But the risk in crypto trading is very high. If you are a beginner and trading without any knowledge then you may lose your whole money with in a sec.

Here, we will discuss What to avoid while trading in cryptocurrency? So that, one can do cost-effective investment.

Should Have Certain Objective

Cryptocurrency trading is a giant sector of earning and like other professions it also need certain objective or goal, before getting into it. Without any goal, your investment will go haywire and will not be cost-effective and lucrative. The goal should not be for earning quickly or FOMO (Fear of Missing Out).

You should have clear objective before getting into this bandwagon. Because certain objective will force you to plan about platform to invest, how to do investment, trading strategies and cryptocurrency status in market.

Lack of this knowledge may lead you to the trap of  crypto scammers. In recent years, almost £113m has been scammed by scammers. This tally is increasing day by day. To avoid your name in this tally, then should make some goal before entering into cryptocurrency trading.

Risk Management

It is the most important factor that one should not ignore, because if you don’t able to do risk management then you will face unbearable lose.

One should know the limit of lose that they can afford. There are many trading bots available in the market, which will set the limit of investment and also stop trading after certain amount of lose that is fixed by the user.

Along with investment one should also take advice of best trading experts and analysts over Trading View. Over all risk management will help users to make gigantic profit.

Avoid investment in Fraud Currency

There are many currencies in the market which are a fake and developed by developers for doing fraud with the innocent traders.

The recent example of this kind of activity is Squid Game Crypto. Where, developer took the advantage of Squid Game popularity and make a currency over it and sell it for playing game on a website of same name and for transaction over it.

When the developers got the desirable amount of money. They collected it and disappeared. They made a scam of $2 million. This is called “rug pull.”

So, one should do proper research over a new currencies before purchasing it from any platform. Your precautions will save you from loses.

Stay Alert from Hackers

The Cryptocurrency is tech based and hence their is a chance that hacker can hacked you and steals your money from your wallet. This is a big threat for any user.

So, to avoid it one should not share their API key or other password to any one. One should not save their password in their device or other device too. Changes their password on regular basis. And also keeps their exchanges upgraded.

Don’t Do Short term Investment

Many people think that cryptocurrency trading is a platform to earn money instantly. But, they are wrong. If you are doing small investment for a long period of time then you will get a huge profit.

As we know that crypto market is volatile. The price of it is fluctuating every instant of time. If it is going up in the morning, then it might go down in afternoon. The prediction over it is very difficult.

But if you investing for long span then you will have a gigantic profit. For example the price of Bitcoin in December 2017 was $20000, which is $47,000 right now.

These are what to avoid while trading in cryptocurrency? One can take advice of our experts for trading in crypto. Till then, stay tuned with us.

 

5 Tips which you should follow in Cryptocurrency trading

Here, we will discuss What to avoid while trading in cryptocurrency? So that, one can do cost-effective investment.

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Here, we will discuss What to avoid while trading in cryptocurrency? So that, one can do cost-effective investment.