Common Mistakes of Cryptocurrency Noobs
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The truth is, we all make mistakes, but oftentimes, we fail to recognize and address them accordingly. Just like in any form of ventures, whether you are an expert or just a newbie making your first few steps, there are always certain mistakes that keep on repeating themselves, whether done intentionally or not.
Beginning your cryptocurrency journey is not easy as someone would have thought. Invest more time than money. It is necessary to get familiar with the process. Inexperience is often the cause of why crypto noobs (beginners) fail in achieving their goals.
Here are some of the most common mistakes that crypto noobs make:
NO CRYPTO BASICS BACKGROUND
If you are a newbie, you are most likely eager to start trading ASAP. There is no need to hurry. Take your time to learn the market more and to develop the basic cryptocurrency trading strategies.
FAILING TO CREATE A TRADING PLAN
Most beginners will just go with the flow without a definite goal in mind. It is essential to decide about the direction you want to take. It will make more reliable decisions and keep the highest level of control possible. Evaluate the result from time to time and make some necessary modifications along the way.
DO NOT SAFELY STORE THEIR BACK-UP/RECOVERY PHRASE
If you are willing to share your KYC (Know Your Customer) details with an exchange, please do activate your 2FA (2 Factor Authentication) when possible. There are far too many hacks going on and having 2FA activated will save you from losing your crypto holdings.
USING THE WRONG ADDRESS
This is one of the most frequent mistakes among the beginners but it can really happen even to anyone. It is very crucial to always double or triple check the wallet address before sending the coins to the possible recipient.
LETTING THE FEAR AND DOUBTS GET IN THE WAY
The cryptocurrency market is highly volatile; thus, it fluctuates drastically. It is something that should be considered completely normal, so don’t let your fear and doubts affect your decision-making.
STORING YOUR CRYPTO AT THE EXCHANGES FOR TOO LONG
If you don’t have the key, you don’t own them. Your go-to routine should always be after buying a new cryptocurrency at some exchange is to send it back to a safe wallet you own where you have a complete control over the funds.
BEING EMOTIONAL
The best trader is the trader without any emotions, that is not fazed by a 200% increase or a 70% dip and just takes profits or rebuys more.
ANTICIPATING THE MARKET THE WRONG WAY
As emphasized, cryptocurrency market is highly volatile, in most cases, certain news and events can have a huge impact on price fluctuations. Your approach should always be wait and see.
CHASING PROFITS
Cryptocurrencies are the next big thing, but that doesn’t mean you’ll be a millionaire within a fortnight. Trading only for profit is the biggest mistake troubling beginner crypto traders.
PANIC SELLING
Stick with your trading plan. Cryptocurrency trading is all about being iron stomach; don’t get too much bothered with price fluctuations.
GETTING JEALOUS WITH OTHERS
It’s a terrible mistake to trade out of jealousy. Just because someone has earned huge profits, doesn’t make sense for you. Use someone’s win as your learning curve rather draining with the emotion.
FINAL THOUGHTS
Cryptocurrency is a very promising market. We have been seeing massive growth in the last few years. But it is not a get-rich-quick scheme. It is a business. Invest in learning. Do your own due diligence before engaging in anything.
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