Diversify your portfolio is good, but diversify to other shitcoins, do you think when Bitcoin price drop, the shitcoin will rise? nope, they only follow Bitcoin price. Diversify to other commodities e.g. gold, real estate, stock, plants.
Depends, personally I don't believe there's any altcoins currently worth investing in, at least not for the long term. So, by diversifying if you mean outside of cryptocurrency as well as Bitcoin, that could be a good idea. Think like property etc. I'd probably agree, but diversifying into altcoins? I mean there aren't that many promising altcoins in the first place, so you'll likely get burned if you invest into too many. 
Topic: 8 Mistake People Make When Investing In Crypto - page 3. (Read 538 times)
If you want to look at it from a different perspective, and when I say this I don't mean to say that this will continue like this, but anyone who invested, and then at least held for 2/3 years profited massively, and not one of them lost money.
To invest successfully, vision is key.
Lastly, remember "Not your keys, not your coins" so let's make sure you don't store your coins in custodial wallet on exchanges.
- In order to have good vision, an investor should have comprehensive knowledge on fundamentals of blockchain, cryptocurrency in general and Bitcoin or any altcoin in particular
- Investment plan should be long term because a long term plan will help investors to skip massacres within a day, a few weeks or months.
- Long term investment means invest with own money, no leverage, so no risk of liquidation
Lastly, remember "Not your keys, not your coins" so let's make sure you don't store your coins in custodial wallet on exchanges.
- Notyourkeys
- Security checklist. A should-read resource.
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.
Just avoid all shitcoins, so you already avoid 3,6 and 7.
I disagree with number 8
Diversify your portfolio is good, but diversify to other shitcoins, do you think when Bitcoin price drop, the shitcoin will rise? nope, they only follow Bitcoin price. Diversify to other commodities e.g. gold, real estate, stock, plants.
1,2, and 5 are just common sense, it's not worth to discuss anymore.
I disagree with number 8
Diversify your portfolio is good, but diversify to other shitcoins, do you think when Bitcoin price drop, the shitcoin will rise? nope, they only follow Bitcoin price. Diversify to other commodities e.g. gold, real estate, stock, plants.
1,2, and 5 are just common sense, it's not worth to discuss anymore.
If we should outlines the tendency causes the newbies investor's to invest in wrong channels, i will not be forced to portray that their major objectives or concern is to get ride of making free profit for their investment, i know vividly that any investor primary intensions is to make profit.. but some investors have nothing like watch over as primary concern before investing. Really if any coin the price quick accelerating many people queue to purchase in order make profit, without putting a consideration factor of making a personal test and examination before enrolling into investment.
Not minding the current trend, the world of cryptocurrency can be quite tricky to navigate, most especially for beginners, who have little or no knowledge. But as a matter of fact, getting started in the world of cryptocurrency today can feel overwhelming due to its countless opportunities and stories of people making money, whereas, sometimes losing due to its volatile market nature. But all thanks to crypto, it’s no surprise to me that more people today have gotten interested, of which over a million worldwide have invested in one or more types of cryptocurrency e.g Bitcoin, Ethereum, USDT, BNB, Cardano, and even the Luna Terra which just crash few days ago.
But despite all been said, I have noticed that there are these mistakes a lot of people keep making when they start investing in crypto, which is the main focus of this thread.
So listed below are the most common mistakes people make when investing in crypto
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
DETAILS…
1. Buying High And Selling Low
This is the most common mistake people make when investing in crypto, because just as we all know how volatile the crypto market is, where you could make huge profits this seconds, and the next, risk of losing your funds. You see a project skyrocketing high in price and you just want to jump into it, simply because you ones missed out on previous similar opportunities, and don’t want to miss out again, forgetting that what goes up must come down. As there is a far bigger chance of losing money investing when a project price is pumping, as that’s the time most early investors start taking out their profits and you may need to wait a long time for the price to break even again, let alone make any money. And when the project no longer pump in price, because of Fear, Uncertainty, and Doubt you jump into selling it at low price.
So if you have been doing this, I will advice its rather you don’t buy if you know because of fear and doubt you will be force to sell at low, as its not crypto-ethical.
2. Investing money you cannot afford to lose
Considering the volatile nature of how the crypto market works, another big mistake people make is investing an amount of money they can’t afford to lose, of which some go a long way to taking loans from bank just to buy a coin with the sole aim of selling it when it rises. And must times always end in regret when plan goes the opposite. Because even I have experience this several times with BTC, of which the last one I will never forget was buying BTC with my $100 college school fee in March 2021, hoping it will rise to pay my school fee and settle some bills, but the reverse was my case as my $100 turned to $50 in few days, of which my examination was fast approaching, and paying the school fee was the only criteria to write the exams, of which I felt really frustrated I can never forget.
So it’s always advisable to invest an amount you can afford to lose in case of the worst case scenario, as the price of BTC will always fluctuate.
3. Investing Before Researching The Coin
This is where most people fall victim, because you see a coin been promoted by a social media influencer or hear people talking about it and you just jump into buying it before making research, because just as scams exist everywhere, the world of cryptocurrency is no exception to this. A popular scam now in the crypto world is the creation of ‘’shit-coins’’ which is always targeted at newbies who has little knowledge of crypto. And a good example of this is ‘’Squid Coin’’, launched just after the release of Netflix’s last year’s most popular TV series ‘’Squad Game’’ of which the coin ran away with over $3.4million of people’s investment.
So if you have ever bought a particular coin without prior research, I will advise you to stop, and rather research before investing in a coin, as every penny matters, and I will be very grateful if this my thread could help you safe future lost.
4. Not having a plan
Not having a target or goal towards your crypto purchase is also a big mistake majority of persons make, because it’s the plan which serves as a guide for action in times of need. Such plans as, 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.
5. Investing Because a Coin's Worth Just Went Up
Another common mistake beginners make when investing in crypto is buying a particular coin just because the price recently increased. Because one major thing about most of these crypto value jumps is that they don't usually last as a result of the fluctuating nature of cryptocurrencies. Taking ‘‘Luna’’ for example, which after it’s great crash, the value massively later went up, which drew lots of attention, and people bought, and price dropped again.
So it's always important to think twice before placing a buy order of a coin with a sudden increase in price.
6. Buying a Coin Just Because It's Cheap
This is another big mistake people make, investing in a bunch of newly launch cheap coins with the sole aim of making profit selling it when it rises someday, which most times don’t always go as plan as a result of many pump and dump scam coins today in the crypto world. And they end up losing their funds to it.
So its not all coin who has the potential of going up 10000X, 1000X or 100X in the next few months or year, so investing in cheap coins, you just have to put more effect in doing more research in choosing the lucky right coins.
7. Following the Current Crypto Hype
You must have noticed some coins become public through the help of most celebrities/public figure or current trends and got a massive adoption, e.g Dogecoin promoted by Elon Musk and Squid coin influence by Netflix’s original TV series ‘’Squid Game’’ which later became a scam after they ran away with the revenue. So its always not ideal to jump into buying a coin promoted by hype or an influencer without due personal research.
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.
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.
Source
https://medium.com/coinmonks/top-7-mistakes-people-make-when-investing-in-crypto-24a4ade5056
https://www.google.com/amp/s/www.makeuseof.com/avoid-mistakes-investing-crypto/amp/
But despite all been said, I have noticed that there are these mistakes a lot of people keep making when they start investing in crypto, which is the main focus of this thread.
So listed below are the most common mistakes people make when investing in crypto
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
DETAILS…
1. Buying High And Selling Low
This is the most common mistake people make when investing in crypto, because just as we all know how volatile the crypto market is, where you could make huge profits this seconds, and the next, risk of losing your funds. You see a project skyrocketing high in price and you just want to jump into it, simply because you ones missed out on previous similar opportunities, and don’t want to miss out again, forgetting that what goes up must come down. As there is a far bigger chance of losing money investing when a project price is pumping, as that’s the time most early investors start taking out their profits and you may need to wait a long time for the price to break even again, let alone make any money. And when the project no longer pump in price, because of Fear, Uncertainty, and Doubt you jump into selling it at low price.
So if you have been doing this, I will advice its rather you don’t buy if you know because of fear and doubt you will be force to sell at low, as its not crypto-ethical.
2. Investing money you cannot afford to lose
Considering the volatile nature of how the crypto market works, another big mistake people make is investing an amount of money they can’t afford to lose, of which some go a long way to taking loans from bank just to buy a coin with the sole aim of selling it when it rises. And must times always end in regret when plan goes the opposite. Because even I have experience this several times with BTC, of which the last one I will never forget was buying BTC with my $100 college school fee in March 2021, hoping it will rise to pay my school fee and settle some bills, but the reverse was my case as my $100 turned to $50 in few days, of which my examination was fast approaching, and paying the school fee was the only criteria to write the exams, of which I felt really frustrated I can never forget.
So it’s always advisable to invest an amount you can afford to lose in case of the worst case scenario, as the price of BTC will always fluctuate.
3. Investing Before Researching The Coin
This is where most people fall victim, because you see a coin been promoted by a social media influencer or hear people talking about it and you just jump into buying it before making research, because just as scams exist everywhere, the world of cryptocurrency is no exception to this. A popular scam now in the crypto world is the creation of ‘’shit-coins’’ which is always targeted at newbies who has little knowledge of crypto. And a good example of this is ‘’Squid Coin’’, launched just after the release of Netflix’s last year’s most popular TV series ‘’Squad Game’’ of which the coin ran away with over $3.4million of people’s investment.
So if you have ever bought a particular coin without prior research, I will advise you to stop, and rather research before investing in a coin, as every penny matters, and I will be very grateful if this my thread could help you safe future lost.
4. Not having a plan
Not having a target or goal towards your crypto purchase is also a big mistake majority of persons make, because it’s the plan which serves as a guide for action in times of need. Such plans as, 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.
5. Investing Because a Coin's Worth Just Went Up
Another common mistake beginners make when investing in crypto is buying a particular coin just because the price recently increased. Because one major thing about most of these crypto value jumps is that they don't usually last as a result of the fluctuating nature of cryptocurrencies. Taking ‘‘Luna’’ for example, which after it’s great crash, the value massively later went up, which drew lots of attention, and people bought, and price dropped again.
So it's always important to think twice before placing a buy order of a coin with a sudden increase in price.
6. Buying a Coin Just Because It's Cheap
This is another big mistake people make, investing in a bunch of newly launch cheap coins with the sole aim of making profit selling it when it rises someday, which most times don’t always go as plan as a result of many pump and dump scam coins today in the crypto world. And they end up losing their funds to it.
So its not all coin who has the potential of going up 10000X, 1000X or 100X in the next few months or year, so investing in cheap coins, you just have to put more effect in doing more research in choosing the lucky right coins.
7. Following the Current Crypto Hype
You must have noticed some coins become public through the help of most celebrities/public figure or current trends and got a massive adoption, e.g Dogecoin promoted by Elon Musk and Squid coin influence by Netflix’s original TV series ‘’Squid Game’’ which later became a scam after they ran away with the revenue. So its always not ideal to jump into buying a coin promoted by hype or an influencer without due personal research.
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.
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.
Source
https://medium.com/coinmonks/top-7-mistakes-people-make-when-investing-in-crypto-24a4ade5056
https://www.google.com/amp/s/www.makeuseof.com/avoid-mistakes-investing-crypto/amp/
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