Cryptocurrency can be interesting, but it can involve risks. You can lose part, or even all, of your funds. Here we explain what risks there are and how you can take them into account with your cryptocurrency choices.
Market risk is the risk that the market will rise of fall a lot as a result of changing mood among investors of bad news about cryptocurrency or even a hack or scam. We also call this the volatility of the market. The market is generally very sensitive of moods.
Unfortunately, not every project in cryptocurrency has the best intentions. Although we take a critical look at every project when listing them, we encourage everyone to immerse themselves in the project they want to invest in and do their own research thoroughly.
This is the risk that it will be difficult for you to sell your cryptocurrency due to little or no demand for it at that time. We call this liquidity risk. This risk can be a result of other risks, like scam risk or political risk.
Government measures or political decisions can also have a negative effect on the value of your investments. We call this a political risk.
Price risk is the risk that your investment will lose value. This risk differs per cryptocurrency and depends, among other things, on: The results of the investment itself Supply and demand Changing mood with investors
Storage your crypto on an exchange involves risks like the risk you don't withdrawal your coins or tokens on time in case of a delisting. More about this risk you will find on this page, with tips how to keep an eye on your investment to prefent you loose your crypto.
Do not invest your whole life savings in cryptocurrencies, or any investment in general.
Traders of all levels can rely too heavily on their emotions while trading. This is a mistake as fear, greed, and excitement can play a hand in making bad decisions. Always have a trading plan, and stick to it no matter what happens.
Don’t follow random tips or gut feelings. If you want to invest in a certain asset, familiarise yourself with its history and tendencies.
If you do not pay attention to your crypto holdings, there is a chance you will miss important events, like swaps or delistings from exchanges and third-party services. This can result in losing your crypto. We give you some tips on how to keep an eye on your investment, but there are ore ways than we show in this guideline. This guideline gives you some ideas and inspiration on how do you closely follow your projects.
Follow the projects you bought closely on their social media channels, like Twitter, Medium, Discord or Telegram.
If there is an announcement for a delisting, please withdraw your coins or tokens immediately and don't wait until it's too late.
Follow Txbit on social media, like Twitter, Discord, and Medium. An easy way to keep up to date.
Make sure the mailings from an exchange, for example, Txbit, are coming in your inbox and not in your spam or junk folder, so you don't miss important announcements like delistings of assets.
If the project has announced a swap, put the date in your agenda with a reminder, don't forget to swap your tokens or coins in time. We advise everyone to swap well ahead of the closing date. The safest thing to do is to swap your tokens or coins immediately when you see the announcement. You never know what kind of technical issues you might encounter which could delay, and ultimately make you miss the swap window.