There are some drastic mistakes that cryptocurrency investors (both new and advanced) make. Below are a few tips that can help in avoiding those mistakes.
The first, Always to have an exit strategy planned; an Exit Strategy, according to Investopedia, is simply a contingency plan that is executed but an investor or trader to liquidate a position or financial asset once predetermined criteria have been met or exceeded. You should not only have an exit strategy for your profit but also for an investment that goes bad to prevent more losses. This is very important because most people do not have an exit strategy planned and ready to go. Most people don't know when they want to sell; they go with the flow, they go up to the peak and down to the bear market.
Second, Avoid scams and significant mistakes. A lot of people get into cryptocurrency and run into one of these mistakes and lose all their cryptocurrency, and this can be very heartbreaking and discouraging, especially if you have been buying in regularly and accumulating profit. If you want to get into cryptocurrency and are not very tech-savvy, it's best to leave your cryptocurrency in a reputable exchange wallet, platform, or finance account. For some people, this is more secure than owning a private wallet where if they lose their passphrase, their crypto is gone.
Never believe people that tell you to send them cryptocurrency, telling you that they will send it back to you in double or whatever (that tactic). That is a big scam. People also impersonate major cryptocurrency influencers when doing this. Just be aware that these scam tactics advance day after day.
Thirdly, Keep your wallet passphrase safe and secure. You can also lose your crypto yourself if you lose your private wallet secret passphrase. If you lose that, your cryptocurrency is gone forever.
Many people have lost millions of dollars worth of Bitcoin and Altcoin to this little mistake. In my opinion, it's better to keep your cryptocurrency in a trusted platform. This type has strict security and privacy protocols and is difficult for hackers to crack into, and don't forget to set two-factor authentication to be on the safe side. But if you still insist on using a private wallet, keep your secret passphrase where you can easily access it in times of emergency in case you forget.
Not only do you have to be careful of scammers, but you also have to be cautious of yourself. So always make sure that your passphrase is backed up.
