Topic: Four Big Mistakes Newbies still do in cryptocurrency world (Read 435 times)

Lack of patience and FOMO are big ones, and some people who should know better still get caught up with these

Nice one buddy , you've nailed it.

Greed is bane of Crypto traders while Patience is key in this Crypto space.

In addition, most newbies don't do their due diligence on coins before jumping to huy the pump.

I will advise newbie like myself to get interested and learn more about this cryptospace before taking any trading decision. Knowledge is essential and moreover, there are tons of free materials online to assist us in learning.

Most at times newbies are prone of scams because they refuse to contact people who are quiet experienced than they are if they face any challenges. They reply to every mail they receive not checking up for authenticity nor how safe the message is.

I think the user made a mistake by not knowing what is his/her private key and what is his/her public address.  Newbies always interchange the public address and private key.  ( I am guilty of this mistake when I was a newbie)

Better watch out on this.  It is beneficial to take note that your public address is not equal to private key.  Never, never, and never give away your private key because it is the "password" to access your wallet.

as long as you don't end up bag holding a pump and dump altcoin that is already dumped and call that patience you are doing fine.

this bold part makes me think that by point #1 you meant "bag hold" because you should never "hold" the altcoins that are dumping and hope for a better return! and as for mining, it has always been a rather hard thing to make profit from because of the high volatility of altcoins. you need to be able to switch fast between coins that are most profitable not stuck around in something that stopped being profitable. and also you need to have some experience in trading so that you can take the most amount of profit out.
PoS coins aren't any better. they also are getting pumped and dumped and the worst part is that you need to bag hold them to get the reward so your risks are also higher.

don't confuse the profit of pump that altcoins have with investing in a solid coin like bitcoin and gaining profit that way. for instance last year i made the biggest profit of my life from dead coins that people don't even hear about anymore and had values less than 1 satoshi (1e-9 and 1e-10) but got pumped to above 10-30 satoshi each! but that doesn't make them any good.

I definitely agree with FOMO and lack of patience, which I guess are kind of related in a way. I know I am guilty of both, and have suffered due to it, but am slowly learning. I like to think though that most people are only burnt once, maybe twice and then don't do it again (but I may be wrong?)

the biggest mistake is not selling bitcoin when the price is high. I remember last time is sold my BTC at 18k every one of my friends said I did stupid and It will hit more than 20k obviously the chart telling me to sell it, even if this is BTC we must not over hype it and stick to our trading tactics. you know what happens. the biggest mistake is not locking profit even the charts telling us we must sell it.

Great post. I started a topic last month and I tried to add everyone's experience to it. Here is a link: https://bitcointalksearch.org/topic/m.45353979

I will add your points to it too. We should be able to compile a list of all the possible mistakes newbies can make in this forum.

I would agree with most of your points, but I think the main big mistake of newbies is a lack of knowledge. Driven by a big dream to earn a lot, they tend to forget that nothing comes for granted. A proper research, some long reads, even this forum posts can change the whole picture. In addition to that, as you said - patience and rational expectations will help build a profit.

I consider myself newbie in trading cryptocurrency. Definitely you are right, however one may be successful if one should be wise. What
I did and plan was to invest bitcoin and trade in a smaller scale. This was the experiment time and part of the planned. Then I failed and lose some of my money. I noted all the worse scenario that could happen in trading cryptocurrency in the crypto market.

Here are some of the considerations when trading crypto:

1. Select a good exchange, local exchange may do better and consider the delay of the market price for the crypto. The time delay for that exchange will affect your trading skill for that cryptocurrency. You should select the best exchange that will hone your skills one day in trading cryptocurrency.

2. Consider to increase your crypto and not the fiat equivalency. I have done this already and gain 10% increase of my crypto holdings. How did I do it? Just sell when market is green(market price increase) and buy when market is red(market price fall down).

3. Trade your crypto little by little. As the green market says that it is better to sell. One should not consider the equivalency of the crypto to fiat. The market price for some of the cyrpto will going to fall down and that is normal. One should not afraid of market price fluctuations for the number of crypto holdings will still be the same.
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4. Be patient for some time when you are not sure of the decision to be made. One should take some time to observe how market price moves so as to get a better result. One should not dive in directly to the process of trading crypto. A trader is still consider a holder.

5. Trade only a portion of the crypto holdings and not all of it because you will just going to lose more on transaction fee which is to be deducted by the crypto exchanges. There is no fast and easy money in trading crypto so must do hardwork to get some profit on increasing crypto holdings.

Better start trading to a smaller scale in crypto trading. Let us make the crypto market active by trading crypto. A friendly Reminder to those who quit trading crypto that "A Winner never quits and the Quitter never wins".

By the way, since you started this topic, I would like to share the post I wrote a few weeks ago about cognitive biases.
The thread received several merits so it is worth reading > https://bitcointalksearch.org/topic/m.44454987
This is more about the psychological aspect.

Wallet, Private Keys and Addy are different concepts. In the wallet you load your private key to get access to your addy. So, if the wallet is your bank, your addy is your debit card 

I have seen people making the same mistake as you say before, posting their private key on a public place, and yes, is one of the worst way to lose money because at end you don't know who take the money.

But nice points you have there, i'm agree with you, we all make those mistakes in some point.

Yea, a common mistake is people who does not know a lot about Bitcoin, diving into the deep end by investing money into expensive rigs to mine Bitcoin. I know when I started out, I desperately wanted to get into mining, because I had a kick ass graphic card and memory to boot.

It turned out that Bitcoin mining were not possible with GPUs anymore, so I dumped that idea. Some people do not stop there and they invest in ASIC miners and hardly reach ROI with their investment.

Do not think Bitcoin mining is possible with anything less than a small room full of ASICs these days and super cheap electricity. 

Wallet backups are absolute must. I`d suggest the cheap way to ensure safety: buy several USB flash drives, save a txt. file with your wallet info there and hide these drives in safe places.
Thus, if something happens to your laptop or PC you can always restore your wallet, just don`t use only one flash drive - decentralize your backup. 

Mining coins is what your grandparents did. There's no money in mining any more and most new cryptos have been premined so the devs can ensure they're majority holders.

As for DASH, has it' collapsed in the last month? You sure you should be promoting it?

I think all new member who want join at cryptocurrency think there is easy to get some money so they don't learn about it. Some people just trading without knowing basic of trading , some people just join some project without how to know are the project we want join is good or not. So it is about all about learn and get more knowledge. You can learn at this forum or at internet and when you feel your knowledge is good so you can start it. Always noted when you get some mistakes and do the right ways so you can get more experience

Being greedy for sure. I can’t remember how many Newbies I’ve seen losing their money because they joined a pump and dump group or an obviously 200% in a week ponzi scam.

There is no “free lunch” in the internet.

Of course, each person chooses his own way, how to make money on the Internet and cryptocurrency.
But I realized that the crypt is an additional unit. We need to move in another direction. Maybe a website or something. Because there are cryptocurrency periods when the price dropped, and output you do not want.
For someone alternative, there can be trade in a short time on the stock exchange. But without knowledge, you lose. It is necessary to understand in this area how the price moves and what news.
In site building everything is predictable. You create a website, run ads, and earn on advertising.

Thanks @reactorjuno ,crypto space is just a weird world for investment, I'm not a fan of trading ,all I can do is buy USDT and sell when Btc is down for getting more satoshis  I found trading to be the most dangerous .

Hi Shatterlean, very relevant topic here.
And I would also add: never do trading with real money unless you have been trained before. I have friends who lost money while trading this year, thinking it was too easy with Bitcoin, big mistake, they got burnt and learned their lessons.
Cannot deny I lost money too when I started, now becoming wiser and it works.

A principle that does not always work but it does a lot of times: buy when everyone is panicking, sell when everyone is hyping. Not a 100% guaranteed success but these few rules will help you make money in the long term.

I'm here to share my own point of view that's really affecting crypto newbies ,with the time and energy wasted ,in the end its has been an achievement for me because I don't have anyone to guide me except doing my own researches ,I learn everything myself .

1) LACK OF PATIENCE
Stop listening to other without doing your own research ,when you heard people saying ,OMG huge PUMP 'BUY BUY BUY or Its Time to SELL ALL YOUR HOLDINGS ' ,don't listen  because you might be a victim of PUMP and DUMP coins easily And you might just end up Dropping your GOLDS for STONEs

2) DONT START MINING COINS EXPECTING BIGGER PROFITS
My own experience building mining rigs to mine has been tough because on the long run the profits isn't just enough,I still have to hold my coins for better returns ,I'd say if you want huge profits the better way is POS proof of stakes like DASH & NEM unless you are rich and ready to build huge mining farm

3) FEAR OF MISSING OUT (FOMO)
Its no use to be a FOMO victim ,cryptocurrency world is huge in general, you don't have to invest in bitcoin to earn good profits ,I've seen people who makes huge gains with not so popular coins ,all you have to do is start realizing that there is always newer opportunities in crypto world every single day.

4)YOUR WALLET IS YOUR BANK
Stop taking wallets for granted ,learn how your wallets works either its ethereum erc20 wallets or others ,you lose your private keys you lose your holdings ,I was in a group on telegram when someone posted his private key claiming he did not receive a airdrop ,I wonder what might have happened to him already ,its like some still don't know how serious there wallets backups are ,don't toy with it.

Thanks for dropping by ,any questions I'm ready to reply ......