Seasoned traders advise beginners that investing in the stock market needs a lot of discipline. Discipline helps to control their emotions in the volatile market conditions. It helps to stop them to make senseless decisions and adhere to their trade strategy.
If the stock market needs extreme discipline, cryptocurrency required mental sharpness. The crypto market is intensely volatile in comparison to worldwide market. Your emotional has to be equivalent to meditating on the mountain peaks during the meteor shower.
Understand how crypto works before you buy bitcoin Australia from a reliable exchange. Some of the common mistakes people make when they trade bitcoin are given below.
Think bitcoin and fiat currency are the same
Bitcoin is a cryptocurrency different than the fiat currency government’s issue. The majority of banks, businesses and governments don’t accept bitcoin money. There are a few ATMs, businesses and online merchants who accept bitcoin.
Bitcoin has to be sold in exchange for fiat currency like Euros, pounds, yen, dollars, etc. The process is bulky and expensive.
Believe Bitcoin to be a single or very popular cryptocurrency
Besides bitcoin, there are more than 2,095 known cryptocurrencies. Blockchain technology is used to create an encrypted digital coinage using the software. You find a lot of cryptocurrencies moving around because any programmer can apply blockchain and create a new version of cryptocurrency. Bitcoin has been the very first cryptocurrency with a one-day market volume equal to $16.809 billion.
Many other cryptocurrencies like Ethereum, Ripple, and EOS are created using new and more advanced technology but bitcoins value is more than all these superior cryptocurrencies.
Assuming bitcoin to be safest and private
Bitcoin keeps your funds safe from those who are unaware of how to pinch cryptocurrency. It is an encrypted digital coin created using blockchain technology. It is hard to crack but not impossible! Smart hackers can crack the security coding of bitcoins and wipe your wallet. There is news of hackers stealing bitcoins from exchanges.
Money is safe in government-insured banks than in bitcoin wallet. It means as your account is insured, you get your funds back in case hackers steal your bank account. Cryptocurrencies are not insured, so in case of hacking your stored bitcoins will disappear.
Not aware about the time it takes to transfer bitcoins in your bank account
The irritating drawback of bitcoin transfer is its very slow speed. It takes an hour or several days to deposit bitcoin transaction proceeds in your bank accounts. Due to inbuilt encryption and security measures, the bitcoin transfer is slow. Encryption constraints the data level they pass through the bitcoin blockchain.
Several online retailers reject bitcoin because they are concerned about their payment app getting crashed if they attempt to process a couple of bitcoins in a second. Bitcoin is very complex and large for quick processing making the payment interface crash. Therefore, it takes 2 to 3 days for bitcoin conversion into fiat currency.
Putting all your needed cash in Bitcoin
People with limited income put all their quickly needed money in bitcoin. A bitcoin transaction is so slow that they cannot have the cash necessary to pay for unexpected emergency bills. Therefore, invest money you can afford because bitcoin takes a few days to cash out!