Investing in crypto can be exciting and rewarding, but some mistakes can lead to losses. You wouldn’t want assets you’ve worked hard to get stolen or burned

So many new investors fall into common pitfalls when making trades and investing in Cryptocurrencies. That’s why knowledge is critical.

Whether you’re new to crypto or looking to safeguard your transactions, it’s essential to know the common trading mistakes to avoid. Keep reading this article to learn six such mistakes.

1. Lacking Basic Crypto Knowledge

Newbies regularly fall into this trap, especially with a get-rich-quick mindset. While investors may be attracted to the hype of Bitcoin and other cryptocurrencies, it takes understanding the assets and how to apply them.

One way to avoid this pitfall is to update your crypto knowledge. Get educated on different projects before investing in them.

2. Short-Term Mindset

Gains in crypto take time unless you’re extremely lucky and knowledgeable on several fronts. Still, it’s best to think long-term rather than short-term.

Bitcoin is a great example. It has gone from being unknown to reaching above $70,000 in value. Long-term investments help you choose the ideal crypto, studying it before trusting the project with your funds.

3. Using Online Wallets to Store Crypto 

Cryptocurrencies require a digital wallet for safe storage. While online wallets seem like the best option because of their convenience, they’re also very risky.

The best option is storing your crypto in an offline hardware wallet where they’re less vulnerable to hackers and scam artists.

4. Forgetting Crypto Wallet Details

Do your best to avoid this pitfall because you’ll lose your assets for life. Since the wallets are digital, forgetting the passwords and seed phrases will mean starting all over again.

These keys are private and often hard to remember. So store them in alternative places so that you can always recover them.

5. The Wrong Wallet Address

Inputting the wrong wallet address during transactions between two digital wallets can cost your crypto assets. This happens when you mistyped the address or use a different network to send the crypto.

In most cases, this is a mistake you can’t redeem. Ensure you double-check the wallet address and network before you send or receive cryptocurrencies.

6. Crypto Scam

As a popular asset class, the cryptocurrency market is full of scammers waiting to rip you off. One study showed that scammers collected around $10 billion in crypto in recent years.

That figure is mind-blowing, and scams won’t be ending anytime soon. Scammers operate in different ways, including via email, crypto wallets, messaging apps, fake cryptocurrency, and fake airdrops.

You can avoid these scams by not connecting your online wallet to applications you don’t trust. Also, store your cryptocurrencies in offline hardware wallets. Under no circumstances should you give out your wallet password, seed phrases, and related information.

Conclusion 

Investing in crypto is risky, especially when you don’t understand how transactions work. However, when you learn how key aspects like blockchain, wallets, and addresses work, avoiding the pitfalls above becomes easier.

Scammers are always on the prowl for crypto assets, so use every security means available to safeguard your cryptocurrencies. Doing so will reduce the chances of you losing your assets.