6 Biggest Mistakes New Crypto Investors Make
You don’t know the basics
What are cryptocurrencies? What is blockchain? Before jumping into the industry, take the time to understand the basics of the technology you’re going to be investing in. If you don’t understand the basics, your digital currency experience will be a short one. You don’t need to rush into it; take your time to educate yourself.
Falling for the hype
There’s a new currency online, and everyone is rushing to buy into it. Sounds like something you need to jump on board with, right? Wrong. Social media has a huge influence in the cryptocurrency world, meaning many currencies get hyped up and crash. If you hear of an upcoming currency, do your own research and don’t fall for the hype. Read blogs from experts and speak to people in the currency community to gather information.
Submitting the wrong wallet address
This happens more often than people would like to admit. It’s easy to give the wrong wallet address and end up sending crypto to a completely different person without the ability to retrieve it. Understandably, selling and buying crypto is exciting; however, one mistake could end up with you losing your currency. Always double-check the wallet address before submitting it.
Falling for the scams
Scams are in every industry, and sometimes, they can look pretty convincing—many scams in the digital currency world prey on new investors who are new in the industry. Never open an account and invest your money into a site before researching them. Pyramid schemes are also in the cryptocurrency world, so be aware of any site that asks you to recruit new investors in exchange for currency.
Investing without a strategy
Not everyone can sit in front of their computer day and night to watch their investments, and not everyone wants to do that. If you’re someone who can only check their investment and trade once a month, you’ll have a different strategy than someone who has five days a week to invest in trading. Know who you are and what you want to get out of your investment. By developing a strategy, you’ll keep yourself inline with your goals.
You don’t read the cryptocurrency charts
When you decide to invest in digital currency, you need to understand the trading market from front to back. The more knowledge you have about the market, the more power you have with your investment. You need to read price charts and learn where you can invest in potentially successful projects. Take the time to educate yourself on price charts to ensure your investments are lucrative.
