How to Avoid Losses in Bitcoin Trading

Most investors believe that the bitcoin market is a platform where profits will always be made regardless of what the market conditions are. It is important to choose the correct Trading Robot like f.e. https://grin-tech.org/bitcoin-trader-review when you want to use an automated Bitcoin Trader. This is far from being true as there are people losing money every single day. It doesn’t really matter what the experts are making you to believe at the moment, this is one market that you have to approach with utmost caution. The reason is that you can lose your investment easily especially when market conditions aren’t favorable.

The major aim of this post is to reveal some of those strategies that can help you avoid losses while trading bitcoins. As simple as these tips may sound, they can really help protect your investments.

Loss of private keys

There are lots of people who have fallen victims to this problem over the years. The key to your Bitcoin wallet is only reserved for you. Once you forget this key, there is every chance that your money is gone. You can also reveal such key to someone close to you in case of any unfortunate incident.

This is evident on the death of QuadrigaCX owner and CEO, Gerald Cotton who died without revealing the key of his wallet to others. The value of bitcoins that were inaccessible was around $250million.

Negligence

Losing bitcoins is very easy which is why you need to be very careful. For instance, transactions are irreversible. That is to say, once they have been carried out, they can’t be reversed. There are people who have mistakenly sent thousands and millions of dollars to the wrong Bitcoin accounts. In order to avoid this problem, addresses should always be double – checked.

Cybercrimes

According to experts, Bitcoin losses are majorly due to cryptocurrency hacks. Although these are being fought against, there is no doubt that it is a problem that is becoming serious. This is a nightmare for every investor. For instance, exchanges have been hacked such as QuadrigaCX, Bitstamp, and Bitfinex. These have led to huge losses being experienced in the total holdings of such companies.

A great way to avoid this problem is trying to protect your account or wallet details from others.

Don’t forget that transactions are irreversible. Therefore, once any unauthorized part gets access to your details, such can bring about irrecoverable losses.

Catfishing

This is a trending issue that has led to most investors experiencing huge losses. It is the act of fraudulent individuals taking advantage of social media platforms to hack people’s accounts. For instance, there are people who may go into a website like Facebook claiming to be a top bitcoin exchanging company.

They can convince others into investing with them for some huge returns. Once they have invested, their account details will be collected thereby leading to loss.

Trading too often

When you are new in the Bitcoin market, chances are that you just want to be trading every single time. This is only a formula that can make you experience losses. This isn’t a numbers game where you will need to trade frequently in order to make profits. Such is why you have to ensure that your decisions are calculated. In order words, always analyze the market properly before buying or selling bitcoins.