Mistakes are inevitable, but you should try to always avoid them at all cost, before it costs you something for life.
In the cryptocurrency trading world, there are so many mistakes that have caused most people to loose cryptocurrency investment assets in the process of trading bitcoin crypto-coin for fast money making online.
Do not be surprised, because I also made some of the worst mistakes listed here as a beginner, while learning how to invest properly in the cryptocurrency market for profit income making.
Even until now, I do make mistakes, but not as much as the kinds I made earlier in the days.
Nobody can avoid mistakes completely, but with experience and better knowledge you can still avert some unnecessary mistakes.
Let’s get started already! Shall we?
1. Investing in Pump-And-Dump Schemes
This is a scheme where individuals false-fully promote fake cryptocurrency projects through recommendations by misleading investors with exaggerated promises and statements.
I always advice my blog readers to do thorough research before investing in any unusual crypto assets, because if not, you can simply loose your crypto investment and money in the hands of swindlers.
2. No crypto portfolio diversification
As a wise person, you might have heard that it is not a great idea to put all your eggs in one basket.
The saying also applies to crypto trading, as the most effect way to minimize risk is by diversifying to different cryptocurrencies, and also track them with an investment portfolio app.
Investing all your capital fund for investment in one cryptocurrency is a very bad strategy, so it is always good to select some number of cryptocurrencies you will invest in for future profit making.
If you want me to suggest to you the best cryptocurrencies you can invest in for long-term purpose, it will be good your my guide on the best cryptocurrencies to invest right now.
3. Fear Of Missing Out (FOMO)
Don’t always jump in and out of your position when a cryptocurrency is in uptrend, or downtrend due to gossips and rumours that has little or no evidence.
Try to control your emotions, as that can spoil the opportunity of reaching your financial goal expectation for a trade.
Let there be some truth in these reports; it is physically impossible to follow everything at once and, in general, the most patient ones still win.
No one in Telegram chats will spread REAL insiders (private information about the prospects of pricing); moreover, even advertised paid channels often give more erroneous information than true.
Rely primarily on your experience and recheck the incoming data. And, if you have a plan of action, thought out in advance, it can be fatal to depart from it by shifting moods.
4. Leaving investment in exchanges
Upon many cryptocurrency blogs have warned most individuals against leaving their investment in an exchange for too long, majority of them still insist that it is easier to trade cryptocurrencies when you leave it in an exchange platform.
Leaving cryptocurrency investments in an exchange platform is very risky, especially if there happens to be a hack on your account or even the entire platform itself.
You can loose your crypto investment instantly, so long as you do not have access to your private keys.
Once you are sure to leave your investment in storage for the long-term, please get any of the best secure crypto wallets to get your investments out of the exchange or trading platform.
5. Not using cold storage wallets
In the cryptocurrency market, there are different types of Bitcoin wallets. But it is not all of them that is most secured for keeping your cryptocurrency investment for a longer period of time.
Crypto wallets varies from hot wallets to cold storage wallets, and the best of them all are category cold storage wallets, because they are designed in such a way they do not need internet to store your crypto asset.
If you have good amount of money to invest in getting a wallet can safely keep your investment from lose, I recommend a Bitcoin hardware wallet, as they have HD (Hierarchical Deterministic) features to use multiple wallet addresses.
6. Not keeping private keys safe
Not keeping your private keys safe, can cause you to loose all your investments instantly.
If someone gets to have access to your wallet private keys, that means they can make away with all the cryptocurrency available in that wallet.
Losing private keys will waste all your money as you can’t do anything if you have forgotten the password.
No cryptocurrency trick will help you become an informed investor. At the same time, never dare to commit any of these mistakes mentioned above, especially to this point.
If you are still new to using cryptocurrency wallets, and keeping your cryptocurrency wallets safe, simply read my post on how to safely guard your cryptocurrency wallet.
7. Falling prey to bitcoin scams
Falling for bitcoin email scam is something that happens every-time to some people. It’s a frightening concept and one that frequently results in undiluted panic.
It is also known as a phishing scam, and it involves using email and fraudulent websites to steal sensitive information and details such as passwords, credit card numbers, account data, addresses etc.
8. Pursuing Ponzi and HYIP schemes
Back in the days – around 2017-2018 a lot ponzi scheme surfaced and made away with many people’s money till date.
They mostly use new investors’ fund to pay the old ones, and that is exactly more like robbing Peter to pay Paul.
As a matter of fact, MMM and Get Help Worldwide then was among the most popular Ponzi and HYIP schemes that operated within the period.
They dramatically found a way to close in on individuals’ financial funds and disappeared in the thin air.
9. Buying every cheap altcoin
Even before investing funds, it is clear how the currency will develop. If this is not a risky investment, then it is necessary to calculate what the result will be from the investment.
A coin can develop, but it can be a fraud as well, especially when it does not posses the features stated in its whitepaper.
Just know that it is a bad strategy to invest money in cryptocurrency just because the price value is very cheap.
Many inexperienced users are used to thinking that most of the cheap altcoins with a small price are merely underestimated.
This is because there are already many stories of sudden long-term growth in cryptocurrency value.
But this is not true, that all of the cryptocurrencies are profitable.
Some of them are also in the category of pump and dump schemes.
10. Investing more than you can loose
As an example, we will bring to the deposit all your available savings, or, especially, loan funds. Not a single person is insured against failures and mistakes; even professional traders often bear significant financial losses.
The stories of newcomers who managed not to make any of the typical mistakes at the beginning of the trade route can be called anomalous, or at least unlikely, with the independent crypto trading from scratch.
Mistakes must be made (not intentionally, of course) because learning from their mistakes is much more effective than on others – this is a characteristic feature of acquiring practical knowledge.
The best thing you can do before the start of exchange trading is to minimize the consequences of initial errors in advance. The rest will come with time.
Crypto investment advice
Being able to maintain certain level of patience is the key to successfully start investing in cryptocurrency safely.
Do not be afraid to miss any deal, as the market is so big and developing that there will be enough money to be made, no matter the number of people involved.
However, remember that it is easy to make money in the cryptocurrency market, but it’s hard to keep what you have earned.