4 mistakes crypto newcomers make

By |2018-11-22T02:41:03+00:0022 November 2018|

While most cryptocurrency applications are targeting seasoned cryptocurrency professionals, Skraps loves the beginners. Our mission is to provide an easily accessible cryptocurrency investing app, allowing anyone and everyone to easily invest in diversified portfolios of cryptocurrency. Not only do we want to give you the app, but we want to educate beginners along the way. We’re counting off 4 mistakes crypto newcomers fall victim to and how to avoid the most common ones.

  1. We might’ve said it a thousand times, so once more won’t hurt: do your research. Not only is cryptocurrency a relatively new territory, but most of the content regarding crypto is opinionated and left up to interpretation. Doing your own research is key to remaining up to date and educated about the ever-changing world of cryptocurrency. Mistake #1 is not doing your own research. 
  2. We’ve already touched base on common cryptocurrency scams and how to avoid them. Avoiding falling prey to scammers is an obvious mistake to avoid, but mistake #2 is all about not protecting your assets. Before purchasing crypto coins, you’ll need somewhere safe to store them. There’s a variety of digital wallets up for grabs when it comes to cryptocurrency. Using unsafe, unauthenticated, or unpopular wallets will most likely result in you losing some of your crypto property. If using an online wallet, use trusted sites. Or opt for a hardware wallet with good reviews.
  3. There’s a lot of noise when you’re first introduced to the world of cryptocurrency. Mistake #3 is getting lost in that noise. Newcomers to crypto should first spend time researching. There’s many ways to get involved with cryptocurrency; mining, investing, creating, studying, teaching. Deciding an initial route will keep you from being overwhelmed and taking too many risks. If you want to invest, invest. Don’t stock up on mining hardware or start outlining your own ICO. Choose somewhere to begin, and go from there.
  4. Specifically for the crypto traders, mistake #4 is getting caught up in the hype. The key to trading is consistency, even during the ups and downs of the crypto market. Newcomers tend to jump into the market and trade with every slight decline in prices. Similarly, it’s easy to want to instantly buy into a coin that begins performing well. Putting emotions aside and carefully considering your actions is the safest way to trade and invest in crypto.

If you think you might be making a newcomer’s mistake, take a step back. Take a breath. Most importantly, use common sense. Staying safe in the crypto world is relatively easy if you do your research, protect your assets, focus on a goal, and stay level-headed. It’s a bullish market out there, but first and foremost, it’s a fun one.