The biggest mistake people do is they invest in some cryptocurrency without doing research.
You can ask yourself - would you invest some amount of money in the company that you know nothing about just because some random guy in the street said it's "the next big thing"? Probably not. Then don't do it with cryptocurrency either! If you already decided to spend your hard earned money by investing in something, take your time and research a project that someone suggested to you.
The second mistake that people do is they trade with emotions.
You have to put your emotions aside when investing and trading. Don't "fall in love" with a project, especially this early in the crypto adoption. One day it may seem as the best project of all crypto and tomorrow their team can do an exit scam on you.
For example, Oyster Pearl was one of the really promising projects. It was even in the CoinMarketCap top 100 list. And then one day their lead dev decided to use a loophole in the smart contract to buy PRL tokens for a very small price and then sell it on KuCoin and Cryptopia.
Of course, there are many other mistakes, but personally I think those two are the most common.
- Major mistake is that we think that every crypto we invest in will blast off soon..
- People put in too much at one go.
- people tend to buy at peaks and not willing to wait for a bounce back when it falls
- People tend to keep their coins with the exchanges making them more vulnerable to losing if a hack takes place.
When investing in cryptocurrencies uninformed people go with the herd and buy when everyone is buying (buy the hype) and sell when everyone is selling (sell during the fomo) which leaves them in huge losses.
Another mistake is people buy crypto and leave their coins or tokens on exchanges. It is a huge total since exchanges get hacked people lose their coins.
Last but not the least people make an error while writing down their private keys or store them on cloud which can again puts them at a huge risk.
You should never blindly follow the market trend; "Hey, as everyone is buying, I think I should also buy." Chances are you do not know enough about the currency in which you are considering investing, because if you did, you probably would have already invested if you thought it was worth it. The best option is to move on at this point or wait for things to calm down.
Another common mistake is to avoid the coins that are going down; This is exactly the opposite of what you should be doing. The only way to win big is to do what others are not doing. If everyone else is doing something, how are you going to profit?
A big mistake is impatience. You expect things to happen within a day, a week, maybe you think you're patient and you're willing to wait a month, but what happens after that? If you are like others who invest in cryptocurrencies, you are likely to expect large profits very quickly and, if not, begin to doubt your choice. Combined with this error is usually a sense of panic that begins to appear once you realize that your investment is shrinking and end up selling and generating losses. Well, again, do you believe in the currency you have? If not, why the hell did you put your hard earned money on it?
Fourth, you just want to get rich. What is wrong with this? Surely all those who invest in cryptocurrencies expect to become rich or at least earn a lot of money and that is why for the first time they were interested in investing in cryptocurrencies. That's fine but greed can become a problem. Why cryptocurrencies are such good investments? Yes, some of you are wondering about the answer to this question. To those who strongly advise you to find out why cryptocurrencies are the future, it is the technology behind cryptocurrencies that is why cryptocurrencies are so valuable today.
Investing the wrong projects without making any reasearches..
1.They panic and sell, just when they should be buying.
2.However when the marking is peaking they want to buy.
3.Moving to fast into or out out of the market.
4.Puting most of your money into the market at once.
5.Waiting until something get popular to buy.
People put all their life earnings on Cryptocurrency.
Many expect quick returns
Many invest on every new ICO
- Spending money that you need.
- Not researching the crypto's you're investing in
- Investing in coins that have pumped too much too fast before you got in
They leave their crypto on the exchange they purchased from. The whole point of crypto is not having to trust someone else to keep your money safe.
Not doing their own research. When I first started I would just go on reddit and see someone else's TLDR of a coin. While more often than not the positives they list are often true, most of the time you don't see the negatives until you read about it or try it yourself. This was my mistake with Nano, while it initially seemed great at first, there are a ton of issues with it that you wouldn't know about unless you looked deep into the history and issues with it in an unbiased way.