For beginners, the digital currency industry has many pitfalls. We explain the three typical mistakes made by beginners and what beginners should avoid.
1. passing on the safekeeping of digital money to a third party is much easier, but it is insecure and in real life you would hardly give your bank details and access to a complete stranger. So always play it safe and keep your assets in your own wallet.
2. you should always react to volatility! The virtual currencies are new territory and nobody knows how high the exchange rate can still rise. These uncertainties about possible risks of an investment are what make the price unpredictable. Experts therefore always recommend a buy-and-hold strategy.
3 Digital currencies are not a typical investment. For this reason, it should always be critically examined. “How does our monetary system work”, “How does the ECB work” and “What makes good money” are questions in which participants in this industry should show a healthy interest.