7 Horrible Mistakes You're Making with Bitcoin - Coindoo

7 Horrible Mistakes You’re Making with Bitcoin

Editorial Team Avatar
Sep 20, 2018
4 min reading time

Crypto field is new to us. We still don’t have the proper infrastructure for it. We don’t know the best use of cryptocurrencies and blockchain. People all over the world are trying to implement cryptocurrency uses in everyday activities, but we’re still far away from perfecting this industry.

Besides large companies and startups, mistakes are made by regular people like us. Crypto enthusiasts, new-born investor, and others are making huge mistakes treating their Bitcoin as a usual financial tool. There are ways to treat Bitcoin properly, and ways to lose your Bitcoin’s value. Often, newcomers are to blame for these mistakes.

So here are the 7 horrible mistakes you might be making with your Bitcoin:

1.  Not doing your own research

In the crypto community, it’s more known as DYOR (do your own research). Even if it’s a rather aggressive and pushy thing to tell you this, you must not depend on somebody else’s opinion and experience.

Often, newcomers are eager to start right away. They gather a few pieces of advice from 2-3 people and dive in deep, only to be fooled, scammed or left with minimum earnings. In order to get the most out of your crypto experience, you should be patient and do your own research.

2. Selling you Bitcoin

What happened to HODL?

HODL – is a misspelled version of the word hold. It is widely known in the Crypto community and has wholly substituted the original word. HODL is a long-term strategy for crypto enthusiasts. Hodlers are holding onto their crypto until their value increases.

Unfortunately, some investors forget about the HODL and sell their Bitcoin when they think its price is high enough. Of course, investment means that you’ll sell your BTC one day, but you should make plans for that occasion. You must stick to your plan no matter what.

3. Starting mining with dreams of becoming rich

Mining was profitable in the older days. Nowadays, difficulty has risen, and the rewards are falling down day by day. Original miners of BTC, ETH, and LTC are now bathing in money. But today you will most probably come out with insignificant profit.

Mining is still prevalent among the crypto community. Cloud mining services are famous on crypto forums, and there are referral programs everywhere. Just DYOR first and then decide to start mining.

4. Letting Bitcoin out of sight

Most people think that prices can’t grow and fall down so fast that they wouldn’t notice it. They’re wrong! One of the biggest mistakes people often make with Bitcoin is letting it out of their sight.

Every hour and every minute counts when it comes to such an irregular financial tool like Bitcoin. Traders have made thousands of dollars trading on Bitcoin in just a few minutes. You can do that too if you follow this advice.

5. Not doing tax calculations

Since the dawn of cryptocurrencies, countries are implementing regulations to control the usage of Bitcoin. Since the Bitcoin can’t be controlled from the central institution, it needs to be tamed. Tools of taming include taxation.

The US citizens don’t even realize that they might get taxes for using cryptocurrency exchanges. You need to avoid the rookie mistakes and start calculating your taxes. Read more here about this subject.

6. Listening to others

While taking someone else’s advice into account is a smart thing to do, you should never rely on other people. Have your opinion aonthis subject. Be engaged in news announcements and more detailed information about Bitcoin.

7. Acting on emotions

Rise and fall in Bitcoin’s price can be emotional. You might think that it’s time to buy BTC if its’ price goes down low. Or think that it’s time to sell, because of the high price. One thing to remember is to be calm and don’t act on your emotions. Again, do your own research.

Making a mistake can be easy, but it’s hard to put everything back the way they were. So, read more about this subject and try to avoid these mistakes. If you’re a newcomer, act like a professional with these tips.

* The information in this article and the links provided are for general information purposes only and should not constitute any financial or investment advice. We advise you to do your own research or consult a professional before making financial decisions. Please acknowledge that we are not responsible for any loss caused by any information present on this website.
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