Today, cryptocurrencies take second place in terms of investment among private investors. At the same time, novice investors tend to make a number of mistakes, among which I identified seven main ones:
- Lack of any kind of investment plan. It is imperative to determine for yourself: goals, risks, key indicators, and the rate of diversification.
- Investing all money in a minimum amount of highly profitable instruments. This, of course, can bring profit in the short term, but due to high risk, profit can turn into a loss.
- Investing only in low-risk assets. A portfolio of low-risk assets will allow you to save, but not greatly increase, the money. When you have time ahead, it makes no sense to avoid a reasonable amount of risk.
- Investing in high-hype tools. If a large hype has already risen around a coin or token, it is most likely too late to invest in it, because The purchase price of this instrument will already be regulated by the market itself, which usually reacts quickly to all news.
- Lack of rebalancing. No matter how strange it may sound, sometimes you need to partially get rid of instruments from the most successful sector in order to restore the initial percentage of investment distribution.
- Insufficient indexing. In the long run, indices show returns above the average return of an individual instrument.
- Focusing too much on analytic forecasts and trading signals. Truly working approaches are never published or voiced by anyone.
And the most important thing:
The point of investing is that you feel protected and know that no matter how life develops, no matter what happens, you are prepared and boldly look to the future. When you need funds, you will have them. Any other goal of a private investor is self-deception.
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