Bitcoin Investment Mistakes People Tend to Make

1. 5 Bitcoin Investment Mistakes People Tend to Make Once you get your feet wet in the cryptocurrency market, carrying out transactions becomes second nature. However, even the most experienced traders make mistakes every now and then. The good news is that you can learn from the mistakes others have made and how to avoid them. This will help you have a stress-free experience. 1. Entering a wrong address It can be exciting to find that you’ve made a profit with Bitcoin. It can be even more thrilling having the profits in your wallet. One of the benefits of investing in Bitcoin is that you can withdraw your

2. gains at any time. However, this is also one of the most common areas that both newbies and experienced investors fumble. It’s easy to make mistakes when receiving your funds. One of the most common is entering the wrong address. This results in the money being sent to the wrong address. The same thing can happen when purchasing Bitcoin. If you enter the wrong wallet address, the Bitcoin will be sent to that wallet. While it may seem like a small mistake, it actually has big consequences. Bitcoin is designed in such a way that transactions cannot be reversed. Therefore your money or Bitcoin will be lost forever. It doesn’t matter how much you beg, cry or threaten. Once you hit send, it isn’t coming back. Considering that Bitcoin transactions often involve a lot of money, these are mistakes you don’t want to make. The most obvious way to avoid this mistake is double check the address you enter before hitting the send button. Another way to avoid the mistake is to check the first and last three characters you’ve entered to ensure a match. Use your browser’s find function to check the address. Being overly cautious will help save you a very expensive mistake. 2. Relying on services that have an exchange for everything There are several services that have been designed to make the whole cryptocurrency trading experience easier e.g. Coinbase. These services make it easy to access and trade Bitcoin and other cryptocurrencies all in one place. The problem with relying on these services is that you may be forced to pay a premium for the convenience they provide. You would pay much less if you simply traded on a Bitcoin exchange.

3. Another problem with these services is that they are not as secure as they would have you believe. These services are often hacked, government crackdowns, are subject to bankruptcy and other woes. Storing your Bitcoin on these services could cost you all your assets. That is a gamble you don’t want to take. Store your Bitcoin in your digital wallet instead for greater security. 3. Losing their key, there isn’t a locksmith to help People lose their private keys all the time. It shouldn’t be a big deal, right? When you lose your house keys, all you have to do is get in touch with your landlord and have your keys replaced. Losing your key doesn’t mean that you will be locked out for life. This isn’t the case when it comes to Bitcoin. Amongst the many security features included in Bitcoin is its decentralized nature and the private key that is required to gain access to the Bitcoin you have purchased and stored. The private key is designed to be impossible to hack. Both of these features not only mean that your Bitcoin is secure in your wallet, but also that once you have lost the key, recovering your Bitcoin will be impossible. If you lose your private key, you will never be able to gain access to your Bitcoin ever again. There is no person or company that you can call to help. It is also impossible to hack your way back into your wallet. Your Bitcoin will be gone for good. If it’s any consolation, you won’t be alone in having lost your Bitcoin. There’s over 4 million Bitcoin lost forever, and many investors who’ve suffered the consequences. If you don’t want to add your precious Bitcoin to this large number of lost coins, ensure that you keep your private key safe. Implement a backup and recovery strategy to ensure that you can always get

4. your private keys. All the effort will be well worth it. You will have peace of mind of being able to access your Bitcoin at any time. 4. PayPal or Credit Cards transactions come with their set of risks Who doesn’t like fast and easy? There’s nothing wrong with taking advantage of convenience. However, in the world of Bitcoin, fast and easy often means a higher fee. Many newbies depend on convenient methods of payment such as credit cards and PayPal to buy Bitcoin. While these payment methods may be easy to use for the buyer, they come with risks for the seller. This is because there is no way to reverse a Bitcoin transaction. However, PayPal and credit card transactions can easily be reversed. This leaves sellers of Bitcoin vulnerable. Once they send the Bitcoin, there is no way to get it back. However, buyers can easily reverse the charge. For this reason, the risk that sellers are exposed to is factored in the fees. This results in high fees being charged to the buyer when they use these payment methods. For example, if you use credit cards to purchase Bitcoin on CEX.IO, you will be charged a transaction fee of 3.5% plus 0.25. Coinbase charges 3.99% transaction fees for credit card purchases and Coinmama charges 10.5% for each purchase. Is the convenience of using your credit card worth the high fees? 5. Dumping Bitcoin for new altcoins

5. There are new coins popping up everywhere. Many people are being sucked into purchasing these coins by the hype that surrounds their introduction in the market. There’s nothing wrong with investing in alternative coins. In fact, the market is expanding to accommodate these altcoins. However, there is no denying the advantage of Bitcoin. It has the longest history and largest community. It is the cryptocurrency that drives the market. Before you dump your Bitcoin to invest in an altcoin, be sure that you do your due diligence. Don’t invest in an altcoin for the sake of it, or simply based on the hype. Pick a coin that you truly believe in and invest in it. Be careful when investing in altcoins. People often rush into investing in these coins without truly examining the merits or risks involved. There are many people who have made fortunes from investing in altcoins. There are many more who have lost fortunes through these investments. A summary on Bitcoin Investments Are you still wondering whether or not you should invest in Bitcoin? There’s no other way to put it: Bitcoin/cryptocurrencies and blockchain technology in general are the inevitable future. Although predictions are varied and some are fuzzy, one thing is certain; cryptocurrencies will be adopted internationally soon. It is worth noting that cryptocurrencies have already been adopted by more than 100 financial institutions. However, several obstacles still have to be overcome in order to see the full adoption of these digital currencies. These include acceptance by governments that foresee huge consequences of the adoption of these currencies to their

6. respective economies. The adoption of cryptocurrencies takes a lot of power out of the hands of governments. This is one of the biggest hurdles that the digital currencies have to overcome. However, the resistance shouldn’t be viewed as a mountain that will probably never be surmounted. It should instead be viewed as evidence that cryptocurrencies are here to stay. And that you are an early adopter of this technology and therefore stand to gain much more in future if you invest in it now! Cryptocurrencies, including Bitcoin, are still in their infancy. As technology improves, improvements will be made in how these currencies are transacted. Nonetheless, one must be careful and cautious when making investments. Always make sure that you are well-informed and that you only invest an amount that you can afford. If you have decided to invest but is unsure about your finances, fret not. Consult these reliable and certified money lending firms for more information today.