Are you making any of these 5 critical mistakes when investing in crypto?
Here are five (5) destructive mistakes you’re making with cryptocurrencies.
Although cryptocurrencies have been around for quite a while now, the idea of picking a particular crypto asset and investing in it can be a bit overwhelming especially now that there are about 9,900 different cryptocurrencies out there.
In case you aren’t aware, a large percentage of all those 9,900 crypto assets aren’t even worth the time.
Many people have made bad and destructive mistakes regarding how they pick and invest in crypto.
Just because it’s crypto and it’s on the news and every billboard or YouTube ad doesn’t mean you should do anything with it guys!
Here are 5 of the critical mistakes you’re probably making right now with cryptocurrencies:
1. You invested in a coin because the price just went up.
Many people, especially rookie investors tend to make this mistake.
This mistake is way too common because one of the reasons why anyone invests in the first place is to make money and what better time to invest than when the price of that asset is going up, right?
With crypto, the answer is a resounding NO!
The price of a cryptocurrency is like a rollercoaster ride. And if history is any indication, a sharp rise in prices is eventually followed by a steep and often lower drop in price.
Remember, crypto prices are always, I repeat, always fluctuating!!
2. You invested in a coin without any prior research.
Generally, when it comes to investing in any form of asset, be it crypto, real estate, or stocks, you want to make sure you take the time to research that asset before putting your money into it.
But you’re too lazy and choose instead to trust the guy on the YouTube Ad promoting a coin.
Scam coins or as we like to call them “shit coins” have even been promoted even by celebrities and other public figures. So always make sure to do your research on any coin before putting your money into it.
Always do your research on any cryptocurrency before investing in it, especially if that coin is new.
3. You decided to invest in just one coin.
When you’re just starting your crypto investment journey, it’s fine to begin with just one coin.
But as time goes on you might want to try some other coin, instead of just relying on one coin. As I said, cryptocurrencies always fluctuate, they’re just not stable.
Hence you want to diversify and spread your assets to be on the safe side in the bad times.
Try to have more than just one type of coin in your portfolio.
4. You decided to buy into the crypto hype.
You went ahead to buy or invest in a coin because everyone was talking about it, Elon Musk made a tweet about it, or you saw a TikTok video about it.
First off, never buy a coin that’s being hyped on social media. Secondly, never buy a coin everyone seems to be talking about!
Those are subtle but very serious red flags. If you’re going to buy that coin at all, make sure you’ve validated it from deep research.
The more hype there is about a coin, the more research you want to do before getting it, if at all you must get it.
5. You decided to buy it because the price is low.
You made a big mistake when you decided to buy that coin because its price is low or more affordable. Many people make this mistake because, ..well, many people can’t afford expensive things.
But with crypto, you want to buy the more valuable coin. The more valuable a coin is, the higher its price will be.
To remedy this, you can buy the coin in fractions (small amounts) and put in a small consistent amount at intervals to get more and more of it. This method is known as Dollar Cost Averaging.
This method also protects you from serious losses during periods when the market is down.
Invest in the more valuable coins in fractions instead of getting the cheaper coins.
HOPE YOU’LL FIND THIS ARTICLE HELPFUL 🤘🏻
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