People like easy money, right?
And when the usual person hears the word “cryptocurrency”, he thinks about this easy source of income.
But not everyone knows about pitfalls that are waiting for traders, and here’s a look at some of them.
Pitfall 1.
The crypto market is full of scammers. They are waiting for you to steal money everywhere – crypto bots, wallets, exchanges, Telegram channels, etc.
That is why if you decide to invest in crypto, you will need to check every service properly and pay attention to every detail, even the custom software development company that made the app or website.
Pitfall 2
It is very important to find the best crypto wallet for your assets.
Even if the wallet is legit but not safe, there will be risks to lose money because of the hack attacks.
The best option for crypto storing is hardware wallets. Yes, you need to pay to get them but their security level is the highest.
Pitfall 3.
A lot of people think that crypto trading is very easy and you don’t need the knowledge to start – just take your laptop and start trading!
No.
Even if you are going to trade with crypto signals, you need to know what you are going to do.
That is why you need to find useful articles or guides and spend some days reading and taking out all the important info.
You have to know what are entry prices, target prices, stop-losses, risk management, how much it is better to invest in every trade, etc.
Pitfall 4.
Here we will talk about margin trading. If you traded with Forex signals, you will know what is leverage.
In general, with margin trading, you can earn, for example, x15 profit if you use 15x leverage.
A lot of people want to trade with leverage at once expecting high profits.
But let’s check another side of this situation – losses. If you are a beginner trader, you can expect losses very often. And what will you do if your loss will be 15 times higher?
Here I want to tell you that margin trades are really profitable but you need to start them only when you have enough experience.
As you see, the future crypto investor should consider a lot of different facts and risks.
The best decision you can do before you start trading – don’t expect easy and high profits from the first day of trading.
As soon as you do everything right, you will be successful.
