The 2020 pandemic has caused a lot of uncertainty and financial turmoil and many are very optimistic and hopeful that 2021 will be a better year, and hoping that things will go back to normal. However, despite the global financial meltdown caused by the pandemic, the cryptocurrency sector led by Bitcoin has been able to keep up with the dwindling economy and surprisedly went higher this year. Here we are in 2021, hoping for better and more successful investment. So l will point out the mistakes to avoid when investing cryptocurrencies.
- Lack of Attention To The Math
When investing in anything in life, alway keep your eyes on the prize. With the way Bitcoin is rising in 2021, you need to pay attention on the profit potential. Because paying attention to the numbers will make you know when you are indeed making a profit.
- Allowing Your Emotions to Make Crypto Investment Decisions
HODL, FOMO, and FUD are familiar acronyms you will encounter in crypto investing. Each of these represents some kind of strategy and are also emotion-driven at the same time, which should not influence your investment decisions.
GODLY means to hold on to your investment no matter how volatile the market is.
FOMO or Fear of Missing Out means buying on the hype because you just want to follow the trend.
FUD stands for Fear, Uncertainty, and Doubt. It can stop you from investing in crypto even if the research stats or market sentiments are telling you that it’s a good time to invest
- Investing Without The basic Knowledge
Whatever it is in life that you want to venture into, you must remember to educate yourself and understand what exactly you are getting yourself into. I advise that before you invest a single cent, you have to allocate some time in learning about the basics of crypto investing. Crypto investment remains unpredictable and risky and if you do not gain the education about the system, you will end up losing money at the end
