2019 is an optimistic time for cryptocurrencies. As the latest digital currency news show, there may be a bullish run in the near future. However, there are a lot of skills which need to be learned – and every crypto investor should know how to make the most of their assets and manage their Bitcoin and altcoin holdings respectively.
Unfortunately, a lot of investors tend to make the same mistakes when managing their cryptocurrency holdings. Below, we are listing the most common ones.
1.Treating their crypto exchanges in the same way as their banks
The Mt.Gox case is one of the best examples linked to this mistake. The Japanese company which is now bankrupt, was once the largest exchange and was hacked in 2011 for 1.35 million BTC and in 2014 for $450 million of currency.
This case explains that vulnerabilities remain mostly when investors treat their exchanges as if they were banks, even though the exchanges do not offer the consumer protections that are mandatory to banks.
2.Not paying taxes
Despite the fact that most cryptocurrencies have no government affiliation, it is common for investors to assume that governments have no interest in crypto earnings. However, the practice shows the opposite – and many exchanges have begun offering tax guidance to the largest investors – but the vast majority of investors shouldn’t also expect an auto-generated forms in their inbox.
3.Losing their crypto wallets
Keeping all of your crypto assets in a wallet is the same like keeping your money in a basement. If it’s get flooded or is set on fire, you have lost them. This is why investors should be smart and make the most of the protection offered by wallets and similar services – especially as cryptocurrency matures and gets even more in the mainstream.
We hope that these mistakes have helped you manage your crypto holdings in a better way!
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