As cryptocurrencies become a more mainstream way we pay for goods and services, more and more investors will be drawn to the flashing lights of cryptocurrencies and what it has to offer. But, it’s not all profit, profit and more profit.
You need to plan and research your investments while watching out for the many scams that have become even more prevalent in recent months. If you are a beginner to crypto and want to know what to avoid and the mistakes every beginner make then we have listed some of the most common when first trading.
Apart from the scams, you must always make your “own” mind up, never listen to social accounts shilling their latest pump and dump token. Research, research and more research if you are not sure then leave a comment below this article and we will reply ASAP.
Most Popular Blockchains – Altcoins
- Ethereum (ETH) – Runs ERC-20 tokens
- Binance Smart Chain (BNB)- Bep-20 tokens
- Solana (SOL)
- Cardano (ADA)
- Polkadot (DOT)
These two Altcoins (BNB & ETH) both allow tokens to run on their blockchains and are currently the most popular options for both users and scammers. Tokens are different to Altcoins, the only true cryptocurrency is Bitcoin. So you can choose to buy Bitcoin, Altcoins such as Ethereum, BNB, ADA or XRP which all have native
Beginners Should Avoid Blockchain Tokens Such as Bep-20 and ERC-20
These two types of tokens are rotten, there are so many scams making the rounds on both Ethereum and Binance
But the reality is it takes 10-20 minutes to copy and paste some code to create a token on any of the blockchains. Some websites providing a token creator which takes even less time. Create a website, wallet, Telegram, Twitter account, buy social media posts and they get “MANY” investors all oblivious to what is happening behind the token screen! It is literally like investing in Dodgy Daves Holiday Club Fund!
But, the sad reality is most new tokens are scams, the owner will cash out sooner or later while leaving the investors holding their junk tokens. These tokens will be worth nothing if the owner or owners decide to pull the liquidity and swap back to a stable Altcoin.
You Have Been Warned: It seems that tokens are becoming flooded with scams, pumps and dumps both fast and slow. The BEP-20 and ERC-20 tokens on the Binance and Ethereum blockchains are 80/90% scam orientated tokens.
Still Want To Invest In A Blockchain Token?
If you still want to invest
- The Token must be at least 8 months old
- Listed on exchanges, not just Sushiswap or Pancakeswap
- The owners are real and not reading from scripts
- Website is hosted where they say they are based
- Coinbase, Binance or eToro listing would also add value
- Even then you cannot be 100% certain
Remember: If a token built on ETH or BNB is a pump and dump then there is no comeback on the token creator. They will not face any justice, fines or bans, they can just go ahead and set up the next token scam, it is a rinse and repeat situation with no end in sight!
Altcoins – Meaning Alternative To Bitcoin
Altcoins are a safer type of cryptocurrency any coin that is not Bitcoin is termed as an Altcoin/alternative to Bitcoin. But a cryptocurrency must have its
- Altcoin = Anything not Bitcoin with a native blockchain
- Token = Not Alternative to Bitcoin but built off another coins blockchain
- Bitcoin = Is just Bitcoin the first and only crypto
We would advise crypto beginners to look towards altcoins/Bitcoin before thinking about trading tokens. You just need to time it right to make your investments. Altcoins will pump one week and drop the next so be sure to invest when you think the price is right. Spend some time watching the pattern and make your move when you think
Remember to always concentrate on the monthly value and not every hour. If you are planning to invest $100 split
Social Media And Crypto Advice.. Big NO!
Never take advice from social media, this is one of the first mistakes that a beginner tends to make. People who are invested in tokens will shill anyone they can making
Another way to think about social media and crypto advice is most buy posts on social media promoting certain tokens. These posts are
- Never take crypto advice from a social media post
- These posts are pumped by the investors of that crypto
- Investors will also shill their friends and family just to get investors
- It’s like a drug and vote for their seat on the spaceship “THAT IS GOING TO THE MOON!”
Selecting A Cryptocurrency (Researching)
Always do your own research, when choosing a crypto you want to invest in you should consider a few things:
- Does the crypto have a use
- What are the future plans of the crypto
- Read their white paper for a detailed description
- Watch the transaction volumes
- Are they active on social media
- Read their Telegram chat for news/updates
- Who are the investors behind the crypto
- The volume of coins in circulation
- How many coins have been minted
When Buying Cryptocurrencies
When you have made your “OWN” mind up as to which crypto you would like to invest in, then you must always use an exchange. There are many exchanges to choose from, some being better than others and some offering more variety.
Before signing up
- Choose a good crypto exchange
- Make sure it trades your crypto
- Confirm your identity (KYC)
- Add a credit card, Paypal or Debit card
- Deposit fiat funds (money) and make your transactions
- Remember an exchange makes money from charging you a fee
- Fees are generally in the range of $10 – $20 -$30
Using A Crypto Wallet
To keep your crypto safe you will need a secure wallet to hold your cryptocurrency. Wallets come in two types a cold and hot wallet. A cold wallet is
Once you have purchased your altcoins from an exchange never leave them in the exchange account because
The Crypto Wallet Passphrase – WARNING!
- Every wallet has a passphrase – EVERY WALLET
- If you ever lose your wallet then you can use your passphrase to restore it
- Store it somewhere safe but not with your hard wallet
- Never share your
passphrasewith anyone EVER!
- Many scams will persuade you to part with your passphrase
- I repeat never part with it because you will be handing over all your crypto
Final Tips For Crypto Beginners
I hope one thing you take away from this post is the warning concerning tokens and how they have become the sewer of the crypto world. As soon as one makes a little move up which they rarely do everyone seems to take note.
This then has a
- Meme related
- KEEP AWAY!
Top tip: If crypto news breaks about any token making “HUGE” gains then it’sCrypto Token Reality
toolate to invest, I guarantee it will revert within a week or two because everyone will be cashing out!
Remember that these tokens rarely have a utility, so they are not good for much unless they are accepted by a big company, but it would still be safer to just use an altcoin or fiat funds. Stay clear of tokens crypto enthusiasts!