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Hello everyone and welcome to Crypto ZIP. We are going to try our best to give you the most important news and novelty regarding Crypto!! Please follow us, we will be uploading daily! Subscribe to our channel and do not miss out! There are a lot of dangers and hazards when it comes to investing in cryptocurrency. Those very same hazards can totally eliminate your gains. We do not mean to scare you away, but this is just the nature of the crypto market. Nevertheless, if you are skillful to avoid some of the most habitual and familiar crypto mistakes, then you already have half the battle won. What are these mistakes? That is going to be the main topic in this video. You will find out about the ten of the most common and catastrophic mistakes that crypto users make. Mistakes that are pretty easy to keep away from if only you know about their existence and potentiality. We are going to share some more crypto investing tip, so you definitely do not want to miss out. This video is for educational purposes only and you should always Do Your Own Research. We are going to start with maybe the most rudimentary mistake that the inexperienced ones in crypto make. And that is investing without a plan. Investing without any sort of thought as to how you want to achieve your goals. A huge percent of the people say that they want to invest in crypto to make money and to further and better their financial position. First of all, their honesty needs to be admired and secondly, there is absolutely nothing wrong with that. A strategy is very important because it can help to inform your investing decision in a comparatively consistent and pre-programmed way. It restricts you from making quick, fast, and emotional decisions when trading particular coins. First and foremost you need to set up your goals by asking yourself, “What I want to achieve?”. These goals need to be very well defined and developed in accordance with your actual risk tolerance. Maybe if you have fewer commitments, it is possible that you can afford to invest a bigger proportion of your net worth into crypto. Whatever your financial position in life, you should never more than you can afford to lose. Maybe the only thing that is worse than investing more than you can afford to lose is taking on debt to invest in crypto. Do not do it! If you are looking for a somewhat slow and consistent returns, then you cannot be wrong with a HODL strategy. Once you do have an investment strategy, you must stick with it. You cannot be sure of its long-term effectiveness if you are changing it all the time. That means that you will not be able to isolate exactly it was not going as previously planned. Just start with a good strategy and you will be already miles ahead. The next mistake the newbies make is that they use the completely wrong exchange. First and foremost, you have to find one that is safe. There are a lot of people throughout the world that are still grieving who banged all their funds into some bucket shop exchange which turned out to be a fraud. Just a little bit of a research is everything that you need. You should also be doubtful of those paid ads that you see on site like CMC, Coin Telegraph, et cetera. What you need to do is to try and scan the forums and look into what people on reddit have to say. If there is something that is trending there, then do not touch it. Make sure that the exchange has the coins you are looking to trade. You can doublecheck it on Coin Market Cap and Coin Gecko. You need to find out if it does support your currency and if does, how do you deposit? Make sure that your bank will not be another issue. A lot of banks are known for flagging large crypto transactions. Try and send chunks in smaller parts do test it previously before sending larger amounts. So, let us assume that you found that right exchange, you need to start thinking about what coins or tokens you are going to purchase. That is where your own research will come in handy. Very often a newbie is getting wrecked in the crypto market is because they completely fail to do their own research. The depend and rely on the tips they ger from friends and some influencers. We have also observed and perceived is that wherever we cover a project, people straight away rush to buy the crypto. That is regrettable since it creates a very bad habit. You should always make sure you know exactly why you are about to invest in a particular coin or token? That is why the smart of Do Your Own Research (DYOR) is the most underrated investment edge. This way you can research some of the hidden gems that other investors have not even heard of. Finding this gems by yourself is the best way for you to double the returns. The only way that you can secure those gains in the long run is by managing your risks. Taking on too much risk when investing in crypto is a huge NO. It leads you to make decisions that are sub-optimal and go against the strategy that you have previously defined. Do not tend to make emotional decisions. It is vitally important that you have a risk management strategy. If you are more active in your trading, then you are going to have to sharpen your risk management. Crypto markets move way faster than you can react to them. That is a strategy based on hope and not a reasoned analysis. Avoid high leverage especially if you are new and unskilled. If you’re going to be holding crypto for the long run, then we advise you to store it offline and aside from the exchanges. You can never fully guarantee the security of your funds on an exchange. Everything can get hacked, the exchange or even your account. This can be avoided if you take your crypto offline. Keep your cryptocurrency in a hardware wallet since these things are almost impossible to hack. If you happen to lose your phone, laptop, or other item, then you will lose access to the codes generated on the device. You will not be able to log into your accounts without them and the only other way to reset it would be through a tangled verification process that the exchange uses. Write down those codes, it is so simple and lifesaving. If you do happen to back up this info on a hard copy, just keep it out of sight and touch form other people. Let us suppose that you have been huddling that crypto for years and are looking to send it to an exchange to sell it and realize those gains. This is the step that a lot of huddlers are tripping up on. Sending funds to an exchange on an unsupported blockchain is one of the most habitual mistakes. For the people who are new to the crypto market they may not know that USDT is present on four other chains. They may don’t know the difference between bitcoin and bitcoin cash addresses. It is very important to double check the address you are sending crypto to is on the supported chain. Always, and no exception, do a test transaction. Investing in crypto without considering the tax implications is something that too many newbies still do. You should not think that you are smarter and more intelligent than the tax man and can hide those gains. The consequences for failure to comply can be way more costly than the tax you would originally have had to pay on that crypto. If you are taking profit on that crypto, make sure that you do it with a consideration to the tax implications. Something that is as simple as when you decide to take that profit could greatly impact on your tax bill. You may be in a situation in which you do not have to pay tax on those gains. You may reside in a country that actually has favorable crypto tax regulations. Taxes are very complicated topic – different countries have different tax regimes. This brings us to our next mistake people make. Talking about crypto. Literally no one has to know how much crypto you hold. Crypto was invented with the express purpose of giving the holder some anonymity when it comes to their finances. There are also some other risks that come from such a boastful attitude with it. Crypto is an asset that thieves can easily steal since all the require is a password. You also need to be careful of what you are posting online. You will not believe how much info could be found out form your actual social network profiles. If you do happen to be lucky enough to have a lot of crypto, do not brag about it. And the final mistake is falling for a fraud or a scam. Notwithstanding how far crypto has come, there are still a huge number of scams online. From Ponzi schemes to giveaways, from pump and dump Groups to private key phishing. These kinds of scams grow rapidly because people fall for them so easily. It is definitely lot more fascinating and attractive to make money the easy way than to actually do the hard work of researching promising projects. Crypto scams are also particularly infuriating as there have been hundreds and hundreds of impersonators that are trying to use someone else’s name. A lot of people fall for these kinds of frauds. Just ask yourself the simplest question of them all, is this too good to be true? And almost all the scams out there can be easily filtered out when you apply this test. Always do your own research before investing and as always, we are advising you to foresee all the options and invest very carefully before giving your own money. Thank you for watching our video! Please subscribe to our channel! We wish you a good luck! CRYPTO ZIP