Since the development of Ethereum, it has been perceived to forever abide by the shadows of the almighty Bitcoin. While this is not entirely wrong, since Ethereum is an altcoin, it has been noticed, according to Ethereum’s price trends and analysis, is very much different from bitcoin. You can buy Ethereum, trade it to earn quick bucks, or you can decide to hodl it for the long-term. Either way, Ethereum is going to rise, and you should be prepared before then.
While there’s nothing wrong with buying Ethereum now and either trading or storing it, there are several mistakes most individuals make when buying Ethereum. It’s, however, no news that the price of Ethereum has reduced drastically from its all-time high to about $3,500 point. Currently, Ethereum remains the top 2 cryptocurrencies by market cap after Bitcoin, and it doesn’t look like it would be dropping anytime soon. Ethereum has been somewhat consistent with its price spikes, and you might have decided to buy Ethereum now that it’s feasible (according to your technical analysis). Before you visit Bitvavo to buy your Ethereum, you should learn a thing or two about a few mistakes buyers make when purchasing Ethereum.
Not buying Ethereum from a reputable exchange platform:
There are several ways to acquire Ethereum, and crypto platforms like Bitvavo are some of the best options. You can also get Ethereum from online brokers and apps, as well as by other cryptos. Nonetheless, you must note that not all of the options (exchange platforms) are great; hence, you need to be sure of the platform you intend to buy your coins from. Note that fake crypto platforms have just one aim, and that is to steal your money. Some legitimate apps where you can easily buy cryptos, such as Venmo and PayPal, have very high fees and, for some regions, restrictions. If you are a newbie in the crypto space and intend to buy Ethereum, endeavour to buy from a reputable exchange platform. The easiest way to doing this is by visiting Bitvavo, as they have track records of outstanding services to both individual buyers and institutions. Exchanges that keep insurance and uses cold storage to store cryptos should be considered. They are more secured than those with hot storage systems.
Not taking time to research:
This is a very popular mistake most crypto enthusiasts make. Yes, even the so-called analysts make this mistake. Once the news about a token breaks grounds, they don’t bother to research; they just invest. Before you pump your money into any coin or Ethereum, make sure you are conversant with the network. You need not be an expert in Ethereum and its network before you can achieve this fit. All you need to do is take a little of your time, learn about the Ethereum network, go through the whitepaper, study the roadmap and be sure it’s what you can work with before buying.
Understanding the Ethereum network will help you know how volatile the network is and how you can avoid being liquidated or running at a loss. You don’t need the Ethereum trend to influence you before you buy Ethereum. All you need is the right knowledge about what Ethereum is and how far it has gone according to its roadmap.
Putting a stopwatch on the market trend:
Know that the crypto community is highly volatile, meaning nothing is promised. A trend might appear bullish, and in the next minutes, it’s all bear. On the other hand, Ethereum moving closer to its all-time high might be a tempting opportunity for you to wait till it retraces before you buy. While this might work for some persons, most times, it’s reversed. You should work more on your technical analysis and be sure to note when to long the market and short the market. No one can accurately predict what will happen the next minute on any crypto trend table. Ethereum, for one, is highly volatile, it might increase, and you begin to blame yourself for not buying when it’s reduced. If you still don’t buy, it might continue to rise till it hits another all-time high. It can be very frustrating, and active traders and newbies mainly make this mistake.
If you want to buy Ethereum or invest in any crypto, perceive it as a long-term investment because by then, it’s certain that the price will increase after few years. If you are an active trader, you might want to focus on your technical analysis game.