Common Mistakes in Cryptocurrency World
The profits generated while trading cryptocurrencies are massive in comparison to other investment opportunities. However, many traders from Dubai are guilty of some mistakes that cost them heavily. We will discuss some of these common mistakes.
You may have heard about many miners in Dubai becoming millionaires through the process. Mining at the beginning used to be too lucrative. In early 2010, Bitcoin miners had to generate blocks and validate transactions. It was extremely easy at that time to get huge profits due to a lack of miners in the network. However, as mining became popular, too many users joined the network and congested it. Thus, the profits began to decline and rewards were diminished.
Moreover, the electricity costs of mining have already increased substantially. The only people who are likely to be profiting from mining are those companies who have set up large warehouses of mining rigs and receive cheap electricity.
Selling at the Wrong Time
A guy in Dubai bought Bitcoins when they were $5 and sold them when they were priced $50. He probably would have thought it to be a good bargain by comparing it with traditional assets. However, Bitcoin went from $50 to $500 and from $500 to 20,000 eventually. That guy erred because he did not have the faith in Bitcoin’s technology.
After buying a cryptocurrency, there will be many times when you are tempted to sell it. Cryptocurrencies are not like other traditional assets and currencies. They fluctuate regularly. Therefore, wait for your cryptocurrency to reach the sky before selling it.
One of the biggest mistakes of a cryptocurrency beginner is his lack of research. There are brilliant cryptocurrency analysts on Youtube, Facebook and other channels but one must not limit his idea to buy a cryptocurrency completely on their advices. The money you are going to invest is valuable and you must be responsible with it by doing your research as well.
Buying at the Wrong Time
One of the most popular lingo in cryptocurrency space is “FOMO” (Fear Of Missing Out). Every cryptocurrency trader meets a point where he buys a cryptocurrency when it is peaking and then loses his investment after it crashes. People who bought Bitcoin at $20,000 in the end of 2017 know this pain when they saw it plummet to $6000.
Hence, if you see any cryptocurrency making waves and its price surging, do not be too hasty and let it go. Instead try to target an underrated cryptocurrency that you believe can peak in future.
Protecting your Keys
You must have heard about various cases of cryptocurrency thefts in Dubai. The reason behind these thefts is the inability of cryptocurrency owners to safely store the private keys of their cryptocurrency wallets. Keep your private keys safe and do not tell it even to your immediate family and friends.
If you actively buy and sell cryptocurrencies, then be careful and make sure you are not guilty of these mistakes. Cryptocurrencies can provide you the prospect to earn millions as well as the possibility to lose millions.