8 Mistake People Make When Investing In Crypto

ms-bit

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Quote from: CryptoHeadlineNews on June 04, 2022, 05:03:30 AM

8 MISTAKES PEOPLE MAKE WHEN INVESTING IN CRYPTO

1.   Buying high and selling low
2.   Investing money you cannot afford to lose
3.   Investing before researching the coin
4.   Not having a plan
5.   Investing because a coin's worth just went up
6.   Buying a coin just because it's cheap
7.   Following the Current Crypto Hype
8.   Investing in Just One Type of Crypto

Gold rules! i wish everyone could see this before entering the crypto world!

Falconer

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Quote from: CryptoHeadlineNews on June 04, 2022, 05:03:30 AM

8. Investing in Just One Type of Crypto

This is another big mistake people make, investing in just one type of coin, because thou it’s not bad to start with one type of coin, but as time goes on, diversify your portfolio, because it’s not good to put all eggs in one basket, as no one knows the next minutes, because as a result of the volatile nature crypto, a coin can be skyrocketing now and in the next one minute crashing.
So that’s how crypto works, and diversification is the best option every crypto holder could do to either stable coin and the rest.

However, never take this method as a big mistake because there are many people who are willing to ignore dozens of altcoin to not include in their portfolio just to invest in bitcoin alone. They only have bitcoin in their portfolio and ignore the long term potential of altcoin, so what big mistake did they make?

Even if diversification is good but if one is only investing in bitcoin then it is actually a very good option. Bitcoin is still much better in the long run than thousands of other altcoin, so obviously that shouldn't be taken as a mistake. After all, don't put your eggs in one basket - This doesn't necessarily mean you have to diversify your assets for several different altcoin, but it's kind of a way you keep some of your assets in different wallets.

Bhig Daddy

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A very good post it just too bad that it a plagiarized work, because this provide alot of good information to many members of the forum. I believe you know plagiarized works are prohibited to this forum, please do endeavor it doesn't happen again.

passwordnow

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It ain't no problem investing only to one crypto if it's bitcoin. Diversification isn't bad but if you're a maximalist, it's also not a problem because I've seen those maxis that have been made well, and even until now, there are plenty of them that are just silent.
There also goes those investors that have been holding for long even before the 2017 bull run and never sold up to this point along with the last bull run of bitcoin that hit $69k.

2stout

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I would also add 2 more. 1) Thinking you're going to get rich quick and 2) Failing to take profit, at the least to recoup your initial investment. Otherwise, the market has a hard way of teaching lessons.

Rengga Jati

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Investing in cryptocurrency is something that can be very worthy and also risky at once. People may get high profits from investing in the crypto industry, and o the other hand, vice versa, people may lose much money because of crypto investment. This can happen because of some problems and reasons. Seriously, these 8 mistakes very often happen in the crypto industry, done by mostly beginners and also people who have been here in the crypto world for longer times.
Yeah, as like here:

Quote from: CryptoHeadlineNews on June 04, 2022, 05:03:30 AM

2. Investing money you cannot afford to lose
3. Investing before researching the coin

They even don't learn moreover analyze the coins or projects that they want to invest. They only follow the hype from high promotions by most influencers. Sadly, people are only interested in the profits, but they cannot learn and control their funds. That is why many people are also not ready with the risk of losing. In this case, they cannot afford to loose. Moreover investing in coinwithout any research is something that is very risky, like gambling in certainproduct only.

lalabotax

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Quote from: CryptoHeadlineNews on June 04, 2022, 05:03:30 AM

8 MISTAKES PEOPLE MAKE WHEN INVESTING IN CRYPTO

1. Buying high and selling low
DETAILS…

This is exactly. Buying high and selling low commonly happens because someone is facing or experiencing a panic situation. The reasons may be because of the FUD or market correction of the price itself. That is why people will panic automatically and sell their coins directly because of the panic situation. This may not happen if we can control ourself to be calmer to face the day.

Quote from: CryptoHeadlineNews on June 04, 2022, 05:03:30 AM

7. Following the Current Crypto Hype

This is also another reason why especially newbies can lose their money so easily because they only follow the crypto hype without any analysis at first. We know that crypto hype is very interesting and makes most newbies desire to invest in that hype.

Munir575

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Quote from: lovesmayfamilis on June 04, 2022, 09:49:16 AM

Quote from: CryptoHeadlineNews on June 04, 2022, 05:03:30 AM

4. Not having a plan
How much risk are you willing to accept, How much money do you want to make, When do you plan to take your first profit or cash out completely, and Is the investment short or long term e.t.c.
Because these questions could go a long way and are very important question one need to answer before proceeding a crypto investment, as this serves as a foot print for an immediate action.
So, its always good to plan in all we do and crypto is no exception, as that gives us a clue on what to do next.

https://medium.com/coinmonks/top-7-mistakes-people-make-when-investing-in-crypto-24a4ade5056

The forum kicks against Plagiarism and we should not fall victim and be caught in the act, i see you've done the needful. You did a very good job with the post though, alot of people make these mistakes when investing in cryptocurrency especially newbies i just hope they can learn from this.

ScamViruS

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Quote from: Gosgosking on June 13, 2022, 04:56:42 PM

Diversity is very important in cryptocurrency, not putting all investment in one coin. When taking decisions to diversify cryptocurrency investment it does mean one should all his new investment buying coins that are not reliable. Investment must be with coin that has good qualities and market value.

There is a need to do enough research before making any investment. It is important not only to invest in different coins by sharing funds, but also to see what the market situation is and where the market trend is. Most new investors do not follow what you say. As a result, they face huge losses. This is a perfect example of what happened in the crypto market in recent times with luna coin, why you should not invest all your money in one coin.

m2017

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Quote from: Gozie51 on June 05, 2022, 03:58:41 PM

Quote

8. Investing in Just One Type of Crypto

I agree with this point too. This goes against the rule of diversification because diversification is to put money in different aspect of business so that incase one is failing and the other or next might succeed and you gain or recover from the loss of the losing one. If you invest in just one type of coin with alot of money, it is not a good investment. It is better to put money in different coins like throwing your net in the river you never know the fish it will catch for you.

Diversification brings not only the opportunity to "catch a bigger fish", but also to squander one's resources on a "fishless river". It seems to me, Investing in Just One Type of Crypto, not such a bad idea if this crypto is bitcoin. Spreading your money across other altcoins not only increases the chance of losing it, but it also reduces the return on investment in the bitcoin because there is less money left to spend on it. The pursuit of "very big fish" may be fruitless and it is better to be content with the "medium fish". All the same, at least some "catch is better without a catch at all". Pardon the "fish" metaphor.

Cookdata

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There are always lessons to learn in crypto because people who want to make quick money always make mistakes and we continue to learn from them, even as a bitcoin Maxis, you will sometimes make mistakes that you may not realise on time but they make us even stronger and wiser in making future decisions.

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I have just gone through the website you are shilling, nice way of including a promotional website into a nice discussion, the website is having good faces of the team, and they have the potential of making good sales in their shit coin, what I was so interested in was the part they said they are partners of Binance. Nice one comrade! Wink

Marvell1

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Quote from: Gozie51 on June 05, 2022, 03:58:41 PM

Quote

8. Investing in Just One Type of Crypto

I agree with this point too. This goes against the rule of diversification because diversification is to put money in different aspect of business so that incase one is failing and the other or next might succeed and you gain or recover from the loss of the losing one. If you invest in just one type of coin with alot of money, it is not a good investment. It is better to put money in different coins like throwing your net in the river you never know the fish it will catch for you.

My understanding of portfolio diversification is that we will invest in many different areas, not in many different coins. It won't be true if you invest in shitcoins without investing in bitcoins, or if you just invest in bitcoins and don't need a lot of shitcoins. Crypto market is not like other markets, everything here is dominated by bitcoin, if bitcoin goes down then no coin can go up or vice versa. Diversifying crypto investments isn't bad, but it doesn't make much of a difference.

xSkylarx

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Quote from: CryptoHeadlineNews on June 04, 2022, 05:03:30 AM

CONCLUSION

In conclusion, there is no short cut to success in crypto investment, that’s why I will advise anybody who wishes to invest in crypto to first achieve the very basic knowledge, so that you don’t regret with the loss of your funds.

They should also learn how to control properly their emotion in different market situations. One of the mistake of some traders/investors is they let their emotion control them resulting for some impulsive decision that should not be made. If there is a fud that shakes the market, they quickly sell their crypto out of fear. If market is going parabolic, they get greedy and set unrealistic targets until that crypto dumps and they miss the chance to gain profit.

Mask00

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Seriously!!
Thank For Sharing This Information. Its To Helpful for Investor.
Personally For Me

Gosgosking

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Diversity is very important in cryptocurrency, not putting all investment in one coin. When taking decisions to diversify cryptocurrency investment it does mean one should all his new investment buying coins that are not reliable. Investment must be with coin that has good qualities and market value.

Dunamisx

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I think to an extent mistakes are inevitable because no one is perfect but out of our imperfection shouldn't come a stupidity, just as OP was trying to address some mistakes done when dealing with cryptocurrency and unknowingly making a mistake as well that goes against the forum rule, but he quickly realized his wrong and amend it, imagine if we cannot give credit referencing the author of an article, how can we then confide trust on other aspect or areas we talked, post or comment about to be true and genuine, this is also a lesson to us all to be transparent in whatsoever thing we do and give honour to whom it is due.

Charles-Tim

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Quote from: Lida93 on June 06, 2022, 06:38:30 PM

I want to talk on your number 8 mistake you mentioned. For me I see no mistake whatsoever in investing in just one particular crypto especially when you have a great awareness of such crypto instead of diving into Jack of all trades and master of none kind of thing.

Cause it's empirically possible you can invest into three different cryto and still end up lossing, either serially or simultaneously.

If it is bitcoin you are investing on, I see no reason of going for other coins, but if it is altcoins you want to invest on, some altcoins may rise in value and price while some may remain stagnant and not rise during bull run. It can be unfortunate that someone can invest on a single altcoin and the altcoin did not rise in bull market or it may not rise to the extent it supposed to rise which can be very frustrating and disappointing. That is the reason people advice people to invest in more than one altcoins. But for bitcoin investment, you will definitely make profit.

Lida93

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I want to talk on your number 8 mistake you mentioned. For me I see no mistake whatsoever in investing in just one particular crypto especially when you have a great awareness of such crypto instead of diving into Jack of all trades and master of none kind of thing.

Cause it's empirically possible you can invest into three different cryto and still end up lossing, either serially or simultaneously.

Viscore

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Quote from: Zilon on June 04, 2022, 05:41:43 AM

Every thing listed as mistake narrows down to making quality research before making any investment decision. Shit coin investment is ponzi in disguise, If it must be included in a traders portfolio then knowing when to withdraw is part of the investment plan same with Bitcoin. for non researchers its best to Hold on to Bitcoin and if diversifying portfolio should be considered then real estate, metals is best.

These mistakes are done because they lack the knowledge, experience and skills which will eventually lead to success. However, for newbies, you cannot expect for them not to get mistakes and losses because they are still exploring the market while investing. But these mistakes will eventually impact them some valuable lessons that will make them knowledgeable and become wise in their decisions. Everyone here started from a scratch, before they succeeded in their crypto investments.

Alisha-k

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To survive as a crypto trader it's either you are reading and doing your research or the market reads you and take away your funds. If an investor chooses to hold on to just a single coin that shouldn't be a problem so far they are ready to study to know the next market direction it will likely take. Crypto is a world of research altogether it's either the trader outsmarts the market of it pays the market for it's ignorance.

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