4 Common Crypto Mistakes to Avoid
Author: Elle Miller
Crypto is a global phenomenon that is here to stay. It has been both praised and ridiculed for its volatility, but one thing is certain: there is no turning back from the crypto revolution.
The cryptocurrency market is volatile, but it’s still a great investment opportunity. In this rush to buy and sell Bitcoin and other altcoins, it’s easy to make mistakes, be skeptical or rush into your first investment.
The best way to learn about cryptocurrency investing is to do it yourself and make mistakes along the way.
The better way to learn about cryptocurrency investing is to learn from the mistakes of others too.
We’ve all been there. Got too excited and poured everything in a coin that we didn’t fully understand, got scared, and made decisions we didn’t put much thought in.
Whether you’re starting out or looking into expanding your portfolio, make sure you don’t fall prey to these common crypto mistakes:
1. FOMO or Fear of Missing Out
Not every new cryptocurrency or token Elon Musk tweets about will skyrocket. Not everything your uncle or friend shares is a legitimate investment. The first step to see if an investment for you is to know what you want in your portfolio, your risk tolerance, and your investment plan.
2. Not Understanding How Crypto Exchanges Work
Crypto exchanges is the bread and butter of investing. You will always need to go through one of these to buy, sell, or swap a currency. It is important to understand which one best fits your transaction.
3. Not Using a Hardware Wallet and Protecting Yourself
It’s great if you make money and gain from your investment. It would be totally horrible if you lose all of that. It happens! Many people lose their gains through scams or even simple things like restarting a computer or losing their password. To prevent that, it’s best to get a hardware wallet, and keep a copy of your keys and passwords on a written note locked away somewhere safe.
4. Not Understanding How Blockchain and Crypto Even Works
This is the MOST IMPORTANT mistake you should never make. Do your own research! You should never ever put money in something you don’t understand. So, if you want to create the life you want, make a ton of gains on your investments, build up your portfolio, you need to take the first step.
What is that?
Invest in your education.