Crypto mistakes are common as crypto gets more and more complex. These mistakes can end up costing you a lot of time and money during your crypto career.
Craig Pecoco, a famous day trader and equities investor in crypto, has shown his audiences how to avoid these crypto mistakes. Hopefully, the concepts in this video will prevent you from making the same mistakes.
Security / Safety Best Practices
When someone creates a fake website imitating something that you’d connect your crypto wallet to or something that you would attach any sort of financial account to anyone can literally take a real website and make a fake version of it.
There are many fake websites and if they get your password in private key, which you have to enter whenever you’re attaching your Metamask to a new device, they can go in, clear your funds out, change your password, and you can lose everything.
Craig’s tip for avoiding this is always using Coinmarketcap as Google. So if you want to go on to anything, you just need to click on it through Coinmarketcap. This is going to be the real one and you can see right here this is a completely different URL than the fake one.
Fake account okay they’re everywhere so just be really really careful also in youtube uh comments no one’s gonna reach out to you and ask you for money and if you ever want to verify this just go on to youtube channel or something that you know is official and look at the associated socials that way you’re never getting scammed out of money.
No one is going to ever ask for this if it gets out anyone can change your password and steal your fun. So just make sure that you’re keeping this very private and you’re not sending it to anyone.
Two-factor authenticators and SMS verification when you’re signing into exchanges okay it’s a very very good idea to go into your exchanges and set these things up because otherwise if someone just has your email and your password they can enter your account and transfer funds so you’re pretty safe but just make sure that you’re getting all this stuff up when you open up an exchange.
Be very careful when you’re doing this and make sure that you’re always transferring from compatible blockchains. Another quick tip it’s just a very good idea to send a small test transaction. ETH fees are a lot but if you’re going to be sending a large amount of money just send 10 or 20 dollars over, make sure that process goes through, so that if you repeat it’ll end up working and your funds will be safe.
Always double-check and send test transactions before you pull the trigger on any large sums of money.
Avoid Leverage If Not Expert
The second tip is to avoid leverage. If you’re not an experienced trader. The leverage can be a great tool if you understand how to use it and have the proper guidance. However, if you don’t know it can be a very fast and scary way of losing a lot of money very quickly.
You shouldn’t be risking $100 on a trade. If you’re a total account balance is 195 dollars but the point is that if you’re starting with $2,000 or $3,000 and you risk $100 per trade, you still have 30% attempts to go into profit, and if you have that leverage, you’re not taking on any more risk.
But you’re able to take trades using less capital and use that other capital for long-term equity positions, or to make multiple trades during the same session to be able to increase the earnings and have more opportunity to get into larger cryptos where the barrier to entry would be a lot larger.
Don’t FOMO Into Headline Hype
The third tip that i have is not FOMOing into investments and following the hype. If what you’re investing in or what you’re hearing about has already made it to headlines and that’s how you’re hearing about these opportunities, it’s already too late.
There are ways that you can wait to make sure that you’re getting in responsible levels so that you can have a higher chance of not chasing the trade and then sitting in the red, waiting for it to come back up.
So one really simple way of making sure that you’re getting in at a good time. Once you’ve seen a lot of volume in a parabolic move come into crypto is by using Fibonacci retracement levels.
Understanding Market Cap Vs Price
What you should be looking at is the market cap. The price of a token does not matter at all. What matters is the amount of capital that is in each project. That’s why it’s sorted by market cap. The price is simply taking the total circulating supply and dividing that by the total amount of capital.
Don’t HODL Everything
Having loyalty and an emotional connection to one of your holdings isn’t going to help you make more money. So when the market is signaling for you to change your allocation into other things, it is wise to sort of adapt with the markets and look at where all of the hype and all of the volume is going into. Make sure you’re diversifying into those things in case those things that are emerging end up taking over what you’ve been investing in.
One other thing that’s extremely important to do that almost no one does is track all of your investments.
Sign up for a Binance account here (Discount 10% trading fees): https://accounts.binance.com/en/register?ref=29171587
Read more: