As you know that Bitcoins lets you handle your transactions with zero fees and give you 100% control over your transactions. But even banks feel that such power can be threat. There is nothing that can stop technical errors, hacking or human nature. Same concept is applicable in case of Bitcoins also. We have listed top 5 mistakes that one can do while trading Bitcoins.
1. Using exchange’s wallet to store your Bitcoins
This is the worst mistake that one can make while trading mistake. When you use some third party services for storing your Bitcoins, you actually giving them all access control to handle your Bitcoins. If exange gets hacked by some expert hackers or if exchange itself does any fraud (eg. Mt.Gox or Inputs.io), then you’ll not be able to claim your Bitcoins back. So its always better to store your bitcoins into your own Bitcoin wallet.
2. Storing all Bitcoins at single place without proper security
“Don’t put all your eggs in one basket”- You might have heard this quote somewhere. This quote is applicable in case of bitcoins trading as well. Try to distribute risk of getting hacked or facing to frauds by storing your bitcoins at various places. Its not applicable if you have small number of bitcoins, but as you know “With great power, Comes great responsibility”, so accordingly if you start investing considerable amount in Bitcoins then its always better to store spread them between different wallets. One effective solution for this problem is creating proper wallet and storing your bitcoins there.
3. Panicking about price change
Bitcoins is considered as digital currency and is considered to be volatile, so its obvious that its value will change with respect to time. Its common things to see price range change of 100$ a day, so you shouldn’t be panic if price goes down by 40$ or so. Considering the long term investment, Bitcoin is gradually and consistently rising despite of current ups and downs . After few trades you’ll get used to such price range fluctuations.
4. Frequently changing from one currency to another
Everyday there comes new Altcoin in market and people gets hyped about it. The thing is that not all Altcoins are well established as same as “Bitcoin” so there might be chance of fraud or kind of band investment by switching to such Altcoins. My opinion is you should stick to coin you personally believe in, it may be either Biotcoin or some other Altcoin.
5. Ain’t training yourself enough or listening to media
As you know that concept of Bitcoins is somewhat complex to understand for newbies. For example if you search on Google that “what is bitcoin”, you’ll be able to see millions of results. If you are really serious about investing into Bitcoins, then you have to train yourself by reading blogs, news or by watching videos. There are lot of communities or forums/blogs which shares knowledge about Bitcoins every day, you can subscribe to such places and stay updates with latest Bitcoins news. This will definitely keep you one step ahead of traditional medias. You may join Google Plus Bitcoins group also for latest Bitcoins news.
I hope this article will try to minimize your mistakes while trading Bitcoins. Let me know what mistakes you’ve done so far in Bitcoins trading, by commenting below.