13 Crypto Management Mistakes

By Guarda Wallet | Guarda Wallet Blog | 13 Dec 2019


1*FRs23FukCBZy-XlJUt4uww.jpeg

Friday the 13th has arrived second time this year. We’re not superstitious but we are a little stitious so we’ve prepared an article for you that’ll help you not to make common crypto management mistakes.

  1. Spend more than you can afford. It’s probably the most obvious and most common advice but it seems like it still has to be said. Never. Repeat after us. Never invest more than you are prepared to lose. It is absolutely essential. Cryptosphere — is not an easy way to make money, do not think of it as of a casino where you spend $5 and get $1k. It doesn’t work that way.
  2. Don’t know the basics. Gather as much info as you can. Read up on the subject of blockchain, crypto in general, find out about exchanges, private keys, public keys, etc.
  3. Be emotional. Beginners tend to trade emotionally, which usually ends up badly. One of the most important skills that you need to acquire is patience and an ability to accept occasional losses. Failing at this is one of the main reasons you could lose money.
  4. Following the crowd. This advice actually goes beyond cryptoshpere it is just common sense. Do your own research before you spend your hard-earned money. If you don’t understand the product or the value, and you’re only listening to “experts” on Medium, Twitter, Telegram or Reddit who tell you when to buy and sell, you’re going to get in trouble and lose money. Do not just blindly follow what someone said somewhere.
  5. Poor choice of an exchange. Always go with a proper and trusted exchange service with a good reputation. There are multiple exchanges operating today which allow you to purchase crypto using fiat and it’s possible to get confused as to which one to use. We’d suggest our friends Binance or integrated within Guarda Wallet service ChangeNOW.
  6. Search for crashed coins. Yet another common mistake is to search for crashed coins. If it went down it wouldn’t necessarily go up. Hoping it will return to its greatest value is often nothing more than a hope. There are coins that are far far away from returning to their peak.
  7. Keeping your crypto in the wrong place. So you have purchased your cryptocurrency. Congratulations! Now what you need is a place to keep them and move them around safely. Remember, as we keep on telling, exchange accounts are no place for holding your crypto unless you want to engage in regular trading. Having your own wallets, whose private keys are known to you and you alone is as safe it can get. Different coins and tokens may require different wallets. As your portfolio grows, maintaining separate wallets for each blockchain will become a headache. Wallets that support multiple blockchains are a relief here.
  8. Poor choice of a multi-currency wallet. By now you know that you shouldn’t keep your coins on exchanges and you have to find a wallet to safely store your crypto portfolio. This is where Guarda steps in. Guarda Wallet supports a wide range of cryptocurrencies, including almost all the popular ones. You can create multiple wallet portfolios, or import any of your existing blockchain wallets for the supported assets (provided you know the private key, of course). Guarda has also started supporting FIO protocol and Unstoppable Domains very recently. You can simply enter, say, “mybestbuddy.crypto” instead of a long address to send coins or tokens. As for security, the private keys are stored locally within the device, which makes it as safe as a hardware wallet. Guarda Wallet is multi-platform and comes on desktop (macOS or Windows), mobile (iOS, Android), web or even Chrome extension.
  9. Not holding your private keys. This is as important as it going to get — not holding your private key is like giving a pin number from your credit card to someone else to enter it for you. Hundreds of millions of dollars were lost due to people entrusting all of their crypto to an exchange that was compromised.
  10. Not knowing when to stop. You have to know in advance when is the time to sell out. Set up your milestones before you get into this.
  11. FOMO. Fear of Missing Out haunts us all especially on Friday the 13th. “If only I could go back in 2009 and buy as much BTC as possible”. Thoughts like these are the worst. Think about new opportunities that are opening in crypto every day.
  12. Only holding one coin. Do not put all of your eggs in one basket. Hold the variety of different coins — you never know which one is going to moon.
  13. Looking for the easiest way. Finally, do not look for the easiest route. We understand your desire to get rich quickly but crypto is not a space where you can skip all the difficulties and go straight to being rich. In crypto, you have to be agile and resourceful do not rush into it without being ready to learn and explore this sphere.

How do you rate this article?


1

0

Guarda Wallet
Guarda Wallet Verified Member

Guarda is a custody-free multi-platform cryptocurrency wallet with a user-friendly interface designed to store, buy, stake, and exchange crypto assets. https://guarda.com


Guarda Wallet Blog
Guarda Wallet Blog

Guarda is a custody-free multi-platform cryptocurrency wallet with a user-friendly interface designed to store, buy, stake, and exchange crypto assets. https://guarda.com

Send a $0.01 microtip in crypto to the author, and earn yourself as you read!

20% to author / 80% to me.
We pay the tips from our rewards pool.