What are some bitcoin dos and don'ts?

Bonjour Newbies 🤍💰!!

The return of bitcoin! People are paying attention since the price of the digital currency has increased by almost 200% year to far. Bitcoin There is an increase in Google search activity, brokers are promoting their cryptocurrency products once more, fraudsters are resurfacing, and exchanges are receiving more inquiries from new customers.

The top dos and don'ts of bitcoin investment have been prepared to help novices in the field avoid common pitfalls.

The Do's

Before you invest, educate yourself about cryptocurrencies.

Make sure you've done your homework on any digital content you plan to acquire before making a purchase. "Don't invest in what you don't understand," as the saying goes in the world of finance.

Learning about the workings of cryptocurrencies, the blockchain, and the distinctions between the most well-known digital assets is crucial. In this manner, you'll know how much each coin and token you're thinking about purchasing is worth both now and in the future.

Utilize only reliable exchangers

Digital assets may be acquired in a variety of ways. Once you've decided which assets to purchase and wish to use an online exchange, it's critical to make sure all transactions take place on trustworthy, secure platforms.

Only a small number of the hundreds of bitcoin and altcoin exchanges are regulated. Most exchanges don't offer a lot of information about their funding sources, operational procedures, or cybersecurity practices. Trading on tiny, foreign exchanges with less regulatory control may result in an unanticipated loss of money as a result of an exchange hack, an exit scam, or an operational error.

All of these unfortunate events have occurred in the past, which is compelling evidence to deal with only trustworthy trading platforms. But even those might be compromised.

Safely keep your holdings of digital assets

It is essential to keep your bitcoin and/or other digital assets safe in a personal wallet as soon as you buy them. Although there are many other types of wallets available, hardware wallets like Ledger, Trezor, KeepKey, and BitLox are typically seen to be the most safe for long-term investors.

Only make investments that you can afford to lose.

It's also crucial to remember that you should never invest more money than you can afford to lose when it comes to buying digital assets like bitcoin.

Bitcoin is a volatile asset that may easily lose 50% of its value in a short period of time, despite the fact that it is rising and that many experts predict it will reach its prior highs sooner rather than later. Therefore, if you want to invest in the asset class, experts concur that it is advisable to allocate a modest portion of your total investment portfolio to digital assets.

The Don'ts

Avoid becoming alarmed by the volatility

Digital assets and bitcoin are risky investments. It's critical for cryptocurrency investors to maintain composure because the price of bitcoin can fluctuate by as much as ten percent in a couple of days or even hours. Recall that this isn't the stock exchange. Much larger intraday price fluctuations occur with cryptocurrency, but that's okay.

You might be better off not monitoring the value of your digital asset portfolio every day if the volatility is causing you anxiety.

Never leave money on exchangers

Unfortunately, exchange hacks continue to be a common occurrence in the markets for cryptoassets. Cyberattacks have not spared Binance, one of the industry leaders. Therefore, as soon as you have completed your trades, you must move your digital asset holdings off of exchanges and into your own wallet(s).
If an exchange is hacked and your money is compromised, you may lose all of your money with little to no legal remedy to recover it, or it may take weeks to get your money back (if the exchange would cover the cost of the security breach).

Never trust what the media says about Bitcoin in the mainstream

According to the mainstream media, Bitcoin has died more than 300 times. In addition, when the price of bitcoin is surging, the mainstream media loves to cover it because it attracts hits and views from potential investors.

In general, you should approach mainstream media with extreme caution if you need any kind of financial guidance. The same is true for cryptocurrency investments, such as bitcoin. But be extremely careful when selecting your crypto media sources as well, as this industry is notorious for biased reporting, amateurish reporting, and pieces with disguised sponsored content.

Avoid falling for a con

Regrettably, con artists are regrettably reentering the market as bitcoin's value rises. While there are many distinct types of cryptocurrency scams to be aware of, the basic rule of thumb for investment scams is "if it looks too good to be true, it probably is." Any investment plans or schemes should be avoided since they are likely to be nothing more than Ponzi scams. Alternatively, if you want direct exposure to bitcoin and company, acquire and hold the assets you wish to buy.

Bottom - Line

Remember as well that the bitcoin market is dynamic and that safe navigation requires being alert throughout all times.