Bitcoin is a digital asset that can provide a huge return on your investment. But it is available in digital form and vulnerable to being hacked. Scammers and cybercriminals are there to hack your crypto account, and they always try to find out the loopholes in your trading account. You can find too many platforms available online from where you can trade such digital coins and currencies, but all of them are not trustworthy.
If you choose the wrong platform, then you can lose your funds overnight, and you cannot claim a refund because it is impossible to revert a transaction with bitcoin. Learn more: http://www.bit-indexai.net/
Here, you can find some Dos and Don’ts of Bitcoin Trading:Â
Keep the following factors in your mind while you trade bitcoins
- Do proper research before you invest your funds in bitcoin, and you must know about blockchain, P2P network and crypto ecosystem to know how bitcoin works. Apart from that, you must choose a trusted platform or exchange to trade bitcoin, and you can check their reputation and reviews online. You can find hundreds of exchanges that offer such digital coins and assets, and only a few of them are regulated. In addition, you must run through the clauses of the website. There are a few charges imposed by the platform for transacting or withdrawing the amount. This varies, so you should make a comparative analysis before narrowing it down to the best one.
- You can use foreign exchange to trade bitcoin, but you can face some problems due to their operational errors. Apart from that, hacking activities on such exchanges can lead to serious losses, and your account can be hacked anytime. So, be careful when you choose an exchange to trade BTC.
- You must transfer your coins from your crypto account to your wallet immediately after your purchase. It has been seen that most of the crypto exchanges and their accounts have been hacked, and you should not leave your coins to your exchange account. So, you can choose a secured wallet to store your coins.
- When it comes to investing in Bitcoin, you must start with a limited amount and then make an expansion to add more. It is better to start your bitcoin investment with a small amount, and you can increase your investment once you understand the market movements. You can invest a maximum of 5% of your total portfolio in bitcoin and add other coins and tokens to your portfolio to diversify your investment plan.
Avoid the following things while you invest in BTC:Â
- It is a universal truth that bitcoin is highly volatile, and you cannot predict this coin’s price. Intraday movement and fluctuation in BTC prices can lead to serious losses. But you should not panic and keep your mind cool while investing in bitcoin. If you are looking at more profit, you should invest for the long run and not get into day trading strategies. So, do not be impulsive while you invest your funds in BTC.
- Do not fall into a trap circulated by media houses, as mainstream media has claimed that BTC has died over 300 times, but it still exists in the market with the highest value. Basically, large investors are using such media houses to circulate fake news, because small investors can sell their coins after reading such news and large investors can buy such coins at a minimum price. So, do not sell your coins because of such news circulated on social media.
- There are scammers available on a huge scale, and they can send attractive offers on bitcoin investment through email and SMS. Do not click on their links and invest your funds in their schemes. You can open a crypto account directly by submitting your documents and buying bitcoin from an exchange. So, do not hire any third-party services for your bitcoin investment.
Wrapping it up !!!
Apart from that, there are some projects available that are claimed as “next bitcoin”, and you should not invest your funds in these coins and investment schemes. You must open an account on a trusted platform and invest your funds in bitcoin directly from your crypto trading account.
Also read: Factors That Affect The Value of Cryptocurrency
