Topic: 5 mistakes to avoid when investing in Crypto (Read 2966 times)
This is very helpful for a newbie, because most newbies are always influenced by FOMO which can cause very high risk
If you are a newbie in crypto world you are bound to make some mistakes but this thread is for you on how to avoind making those mistakes
1. You dont want to skip the learning part- You need to have an idea of what youre going to even if it is to make a research about it. You have read about an asset before you invest in it to know exactly what they are building.
2. You want to avoid using the wrong crypto exchanges. This is one thing you want to avoid because it can make you lose all your assets. You need to research about the exchange before even registering. Some exchanges have fake volumes and are not transparent enough.
3. You dont want to rely on a single coin- Diversification is very important when it comes to investment. You dont want to put all your eggs in one basket.
4. You want to avoid the fear of missing out (FOMO)- When you see everyone buying a trending coin you dont jump in, it might too good to be true
5. You dont want to forget the basic security. Keeping your private keys safe is very important. As a newbie you should understand how important private keys are. Also 2 factor authenticator shold be added to all your exchanges
I dont think its bad to put all your money in single coins. Its depends what coins you investing and i dont think diversification is the answer for safety of investments. Divesifications in investing means you invest not only in crypto but on stock and other financial instruments like bonds and land. Its okay to buy more than one coin but you need a reasons why you buy so many coin not just because diversification but cause you believe the potential in the coin that you buy. 1. You dont want to skip the learning part- You need to have an idea of what youre going to even if it is to make a research about it. You have read about an asset before you invest in it to know exactly what they are building.
2. You want to avoid using the wrong crypto exchanges. This is one thing you want to avoid because it can make you lose all your assets. You need to research about the exchange before even registering. Some exchanges have fake volumes and are not transparent enough.
3. You dont want to rely on a single coin- Diversification is very important when it comes to investment. You dont want to put all your eggs in one basket.
4. You want to avoid the fear of missing out (FOMO)- When you see everyone buying a trending coin you dont jump in, it might too good to be true
5. You dont want to forget the basic security. Keeping your private keys safe is very important. As a newbie you should understand how important private keys are. Also 2 factor authenticator shold be added to all your exchanges
The best advice I can give on this is to follow the warning of Warren buffet that says be greedy when others are fearful and be fearful when others are greedy, I don't buy when FOMO is alive this is a time to sell not buy, also make sure gou invest only on what you understand
Before entering the crypto market, you must understand the market and don't run rampant. This still needs to be learned, otherwise the money you invested will be in vain, and don't invest all your money, but also have the courage to take risks and don't be afraid of failure. Find experience in failure.
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Number 4 is the most important one. As a Newbie, the FOMO force is very overwhelming and you can make decisions that can easily rekt you. Though newbies would be newbies
Yeah fomo and panic selling is like the biggest factor that causes people to make a really bad decision.Im myself still gets trapped by the fomo or panic selling sometimes, when the market feels like its gonna go up so high or gonna go down so hard our feeling usually gonna take over and influence us.
Even many expert traders also gets influenced by that and its undeniable that to go against your fear in trading it needs years of experience. Usually though people overcome this using technical analysis.
Most of my friend who loss in this crypto crying because they don't know what they invested in.
They just joining the hype without knowing the project he invested in and when the price falling they just talking shit about their own decision.
But the important thing is, just spend money in crypto when you afford to lose it because crypto is totally diferrent with any other investment (Stock or etc).
Lack of cryptocurrency knowledge make us suffered huge loss, speculation be main reason why they couragely invest their money into this market even they didn't know what actually it is. And the important point is , they didn't ready to face loss and accept the fact They just joining the hype without knowing the project he invested in and when the price falling they just talking shit about their own decision.
But the important thing is, just spend money in crypto when you afford to lose it because crypto is totally diferrent with any other investment (Stock or etc).
If a bull run starts in the cryptocurrency market (basically every financial / investment market), it is mainly because are investing people who don't know what they are doing, and the only reason they are investing is greed and that they can see that the chart is growing right now.
That is why it is said that you should sell when the hairdresser and taxi driver persuade you to invest - they are simply the people who do not know what they are doing and it is a signal that the bubble will end soon.
Oh yeah, a really good note. I used to do so when I worked in the stock market. For example, when well- known bloggers advertised some companies it was a message for me that it was the right time to sell soon, as first of all price might increase because of followers of these bloggers and secondly it means that new investors can come. And it goes without saying, that when a crowd of people come somewhere, it will not be profitable after this hype.
1. Do not invest first if you are not knowledgeable in the technology of the cryptocurrency you are buying.
2. If a new investor immediately believes the hype of those supported by celebrities.
3. If they hear bad news, they are panic selling.
4. If all the money is in just one investment, it should be divided.
5. No strategic planning.
2. If a new investor immediately believes the hype of those supported by celebrities.
3. If they hear bad news, they are panic selling.
4. If all the money is in just one investment, it should be divided.
5. No strategic planning.
With said so, everything have big impact to every traders who don't understand what they are doing inside this business.
#5 carry the weight as before investing you should plan everything, it saves you time and money that you'll going to spent during your
participation within this business, if you set your plans and strictly follow everything according to how you percept the market. Chances
is high for you to succeed..
Most of my friend who loss in this crypto crying because they don't know what they invested in.
They just joining the hype without knowing the project he invested in and when the price falling they just talking shit about their own decision.
But the important thing is, just spend money in crypto when you afford to lose it because crypto is totally diferrent with any other investment (Stock or etc).
Lack of cryptocurrency knowledge make us suffered huge loss, speculation be main reason why they couragely invest their money into this market even they didn't know what actually it is. And the important point is , they didn't ready to face loss and accept the fact They just joining the hype without knowing the project he invested in and when the price falling they just talking shit about their own decision.
But the important thing is, just spend money in crypto when you afford to lose it because crypto is totally diferrent with any other investment (Stock or etc).
If a bull run starts in the cryptocurrency market (basically every financial / investment market), it is mainly because are investing people who don't know what they are doing, and the only reason they are investing is greed and that they can see that the chart is growing right now.
That is why it is said that you should sell when the hairdresser and taxi driver persuade you to invest - they are simply the people who do not know what they are doing and it is a signal that the bubble will end soon.
I have read a lot and here and it adds to my insight, all that being said can be a great lesson for beginners like me. It would be good if it was followed by will and thoroughness as well because all of that also requires a process. It takes effort to get what you want. Investing in crypto will be profitable if investors understand the crypto world and have a strong mentality. Investing in crypto is not just saving and buying coins but requires proper analysis in order to produce results. Make mistakes that occur as learning and don't get stuck easily with the results that obtained. If can get more then that's better.
Most of my friend who loss in this crypto crying because they don't know what they invested in.
They just joining the hype without knowing the project he invested in and when the price falling they just talking shit about their own decision.
But the important thing is, just spend money in crypto when you afford to lose it because crypto is totally diferrent with any other investment (Stock or etc).
Lack of cryptocurrency knowledge make us suffered huge loss, speculation be main reason why they couragely invest their money into this market even they didn't know what actually it is. And the important point is , they didn't ready to face loss and accept the fact They just joining the hype without knowing the project he invested in and when the price falling they just talking shit about their own decision.
But the important thing is, just spend money in crypto when you afford to lose it because crypto is totally diferrent with any other investment (Stock or etc).
1. Do not invest first if you are not knowledgeable in the technology of the cryptocurrency you are buying.
2. If a new investor immediately believes the hype of those supported by celebrities.
3. If they hear bad news, they are panic selling.
4. If all the money is in just one investment, it should be divided.
5. No strategic planning.
2. If a new investor immediately believes the hype of those supported by celebrities.
3. If they hear bad news, they are panic selling.
4. If all the money is in just one investment, it should be divided.
5. No strategic planning.
You’ve missed a few other essential things. This advice is not only for newbie traders but for professionals too.
R-R ratio - It is the standard measure used to compare the potential gains to the potential losses. The risk-reward ratio states that you should risk only the amount you can afford to lose. For example: If you have a risk-reward ratio of 1:3, it means you’re risking $10 to make $30.
Patience - ‘He who masters the art of patience becomes successful.’ Once you have set foot in the crypto world, your patience will be tested to unimaginable extents. So when the market isn’t in your favor, remain calm and think about what to do next.
Protect your money - When you create a crypto wallet, you’ll get a set of unique public & private keys. The public key is the address of your wallet, and the private key is the password you need to access your wallet. So do not disclose your private keys to anyone.
R-R ratio - It is the standard measure used to compare the potential gains to the potential losses. The risk-reward ratio states that you should risk only the amount you can afford to lose. For example: If you have a risk-reward ratio of 1:3, it means you’re risking $10 to make $30.
Patience - ‘He who masters the art of patience becomes successful.’ Once you have set foot in the crypto world, your patience will be tested to unimaginable extents. So when the market isn’t in your favor, remain calm and think about what to do next.
Protect your money - When you create a crypto wallet, you’ll get a set of unique public & private keys. The public key is the address of your wallet, and the private key is the password you need to access your wallet. So do not disclose your private keys to anyone.
Follow these 5 points to avoid mistakes while investing in cryptocurrency:
1. Buy crypto coin in Bearish market
2. Avoid Panic sell
3. Avoid Panic buy
4. Use trusted exchange platform
5. Don't share your password anywhere
Buying during bearish market is a good strategy for investment, but it still doesn't guarantee profit cause I know a few coins in 2017 that didn't pump during this bull run, but it's still a good strategy anyway, as for using trusted exchanges well just about any exchange can get hacked anytime, in order to be on the safe side never leave your huge bags(coins) on your exchange wallet, they might get hacked anytime and the exchange might not be able to pay every user, storing coins on any third party platform is a bad idea. 1. Buy crypto coin in Bearish market
2. Avoid Panic sell
3. Avoid Panic buy
4. Use trusted exchange platform
5. Don't share your password anywhere
Appreciated,Its helpful for all specially for new comers.Further i add here that dont believe in rumors just believe in personal research and dont stop the learning process.Try to learn new things having trend in the market and learn about upcoming projects.Avoid to repeat past mistakes and diversify the investment in worthy coins,Dont be hurry to sell early til get expected results.
If you are a newbie in crypto world you are bound to make some mistakes but this thread is for you on how to avoind making those mistakes
1. You dont want to skip the learning part- You need to have an idea of what youre going to even if it is to make a research about it. You have read about an asset before you invest in it to know exactly what they are building.
2. You want to avoid using the wrong crypto exchanges. This is one thing you want to avoid because it can make you lose all your assets. You need to research about the exchange before even registering. Some exchanges have fake volumes and are not transparent enough.
3. You dont want to rely on a single coin- Diversification is very important when it comes to investment. You dont want to put all your eggs in one basket.
4. You want to avoid the fear of missing out (FOMO)- When you see everyone buying a trending coin you dont jump in, it might too good to be true
5. You dont want to forget the basic security. Keeping your private keys safe is very important. As a newbie, you should understand how important private keys are. Also, 2 factor authenticator should be added to all your exchanges
All of the points is a very important part of every investors and trader. for that reason, we should be following the rules or tips every body can get better benefit. 1. You dont want to skip the learning part- You need to have an idea of what youre going to even if it is to make a research about it. You have read about an asset before you invest in it to know exactly what they are building.
2. You want to avoid using the wrong crypto exchanges. This is one thing you want to avoid because it can make you lose all your assets. You need to research about the exchange before even registering. Some exchanges have fake volumes and are not transparent enough.
3. You dont want to rely on a single coin- Diversification is very important when it comes to investment. You dont want to put all your eggs in one basket.
4. You want to avoid the fear of missing out (FOMO)- When you see everyone buying a trending coin you dont jump in, it might too good to be true
5. You dont want to forget the basic security. Keeping your private keys safe is very important. As a newbie, you should understand how important private keys are. Also, 2 factor authenticator should be added to all your exchanges
Most of my friend who loss in this crypto crying because they don't know what they invested in.
then they are all stupid mate , and that is the reality .Quote
They just joining the hype without knowing the project he invested in and when the price falling they just talking shit about their own decision.
then they deserve to lose and cry mate because they are foolish enough to invest in something that you don't even know.Quote
But the important thing is, just spend money in crypto when you afford to lose it because crypto is totally diferrent with any other investment (Stock or etc).
invest what can you afford to lose and also invest with deepest knowledge .
I want to add another thing. That is, realize that crypto is not a "1 day millionaire thing". For someone, it does. But it has a low chance and a very high risk. Based on my experience, my portfolio becomes zero many times. Not until I planted to my mind the thinking that it is more likely to be one step at a time than jumping several steps at a time to be successful in this crypto world. And I didn't take my loss too seriously. I forget my loss and bring the lesson that I learned in my mind.
Number 4 is the most important one. As a Newbie, the FOMO force is very overwhelming and you can make decisions that can easily rekt you. Though newbies would be newbies
Being one of the investors in crypto trading you need to be a risk taker of course. Because if your not ready this matter that means
your not suitable to stay here in this type of business industry. And do not be greedy when you do trade in the actual platform instead be satisfy if you earn a little then do it again in another day something like that.
your not suitable to stay here in this type of business industry. And do not be greedy when you do trade in the actual platform instead be satisfy if you earn a little then do it again in another day something like that.
Follow these 5 points to avoid mistakes while investing in cryptocurrency:
1. Buy crypto coin in Bearish market
2. Avoid Panic sell
3. Avoid Panic buy
4. Use trusted exchange platform
5. Don't share your password anywhere
1. Buy crypto coin in Bearish market
2. Avoid Panic sell
3. Avoid Panic buy
4. Use trusted exchange platform
5. Don't share your password anywhere
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