5 Critical Mistakes To Avoid in Cryptocurrency

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Cryptocurrency are digital currency that use encryption techniques for payment transactions for goods and services. They can also be used to settle contracts. You are not purchasing stocks with dividends, instead it uses tokens with valued returns. The commodity are called coins which is now the possession of the buyer of the cryptocurrency. They can be used as a medium of exchange or store of value. In cryptocurrency trading, gains and losses can be made in seconds, minutes, hours or days. It is just like any investment market but is more high risk and volatile. It is a very volatile world that is unlike the traditional investment in stock markets where you can sit on your money and wait. Such swings have moved the value of Bitcoin from less than $900 up to $20,000 in just a few months. There are things newbies don’t understand about and this can be consequential. There is no regulation or securities to back up your money for most cryptocurrency investments. The price value is open to market forces and not determined by a central authority. That means if you lose big, there is not much way you can recover your losses. Decentralization was by design, following the white paper for Bitcoin. That way no government or any bank should be able to control the prices. It is high risk so it is not for the faint of heart, but with enough knowledge of cryptocurrency markets and what they are used for, newbies can gain more confidence and patience. I present 5 critical mistakes which should be avoided when using cryptocurrency.