Three common mistakes while investing in cryptocurrency

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Three common mistakes while investing in cryptocurrency

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 Three common mistakes while investing in cryptocurrency
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Highlights

  • The global crypto market cap recently surpassed the US$3-trillion mark for the first time ever.
  • It shows the surging popularity of virtual assets, especially among the youth.
  • However, one should be careful while investing their hard-earned money into crypto assets.

Millions of people worldwide hold cryptocurrency assets. Recently, the global crypto market cap surpassed the US$3-trillion mark for the first time. It shows that everyone wants a part of the crypto pie. The popularity of virtual currency among some is such that it owns more than 75% of space in their investment portfolios.  

While crypto assets may have given huge returns in the recent past, investors should be careful while investing. It’s easy for novice investors to get trapped in attracting returns and commit mistakes.

On this note, let’s discuss three common mistakes all should be wary of while investing in cryptocurrency:

 Three common mistakes while investing in cryptocurrency

Watch out for low prices 

There are many who are just on the lookout for digital currencies with low prices. Their strategy is simple – buy low and sell high. However, it doesn’t always work this way in cryptocurrencies, just like in stocks. There are certain virtual assets trading at low prices. You should be careful of the assets with declining user rates. There are cases where developers leave a project, and it stops getting properly updated. It makes cryptocurrency insecure. 

Be in your limits while investing

There are some suspect trading platforms that ask their investors to put in as much of their money as possible to make higher gains. However, it is never a good investing practice. Any wrong bet can burn your fingers badly. You should only look towards investing a certain safe portion of your investing capital. You must not go overboard while investing. You must remember – crypto is not easy money.

Source: © Aoutphoto  | Megapixl.com

Beware of scams 

Several crypto-related scams are being reported in media nowadays. Investors get trapped due to their greed. So, you must be watchful of the same. There are several kinds of scams:

Spoofing: Scamsters can inflate or deflate prices of lesser-known digital assets by creating fake buy or sell orders. For instance, they can boost the price by promoting it on social media. Thereafter, they can sell them on crypto exchanges at a higher price and disappear.

 Malicious wallet software: There are cases of some suspicious or unknown wallets on the Google Play Store or App Store that are involved in stealing crypto funds with dubious code.

Fake coins: Scamsters can steal your identity and often your hard-earned money if you invest in fake coins. They do it through phishing – persuading you to click on links in emails that install spyware on your computer.

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