Bitcoin Forum

Not minding the current trend, the world of cryptocurrency can be quite tricky to navigate, most especially for beginners, who have little or no knowledge. But as a matter of fact, getting started in the world of cryptocurrency today can feel overwhelming due to its countless opportunities and stories of people making money, whereas, sometimes losing due to its volatile market nature. But all thanks to crypto, it’s no surprise to me that more people today have gotten interested, of which over a million worldwide have invested in one or more types of cryptocurrency e.g Bitcoin, Ethereum, USDT, BNB, Cardano, and even the Luna Terra which just crash few days ago.
But despite all been said, I have noticed that there are these mistakes a lot of people keep making when they start investing in crypto, which is the main focus of this thread.
So listed below are the most common mistakes people make when investing in crypto


8 MISTAKES PEOPLE MAKE WHEN INVESTING IN CRYPTO

1.   Buying high and selling low
2.   Investing money you cannot afford to lose
3.   Investing before researching the coin
4.   Not having a plan
5.   Investing because a coin's worth just went up
6.   Buying a coin just because it's cheap
7.   Following the Current Crypto Hype
8.   Investing in Just One Type of Crypto


DETAILS…


1. Buying High And Selling Low

This is the most common mistake people make when investing in crypto, because just as we all know how volatile the crypto market is, where you could make huge profits this seconds, and the next, risk of losing your  funds.  You see a project skyrocketing high in price and you just want to jump into it, simply because you ones missed out on previous similar opportunities, and don’t want to miss out again, forgetting that what goes up must come down. As there is a far bigger chance of losing money investing when a project price is pumping, as that’s the time most early investors start taking out their profits and you may need to wait a long time for the price to break even again, let alone make any money. And when the project no longer pump in price, because of Fear, Uncertainty, and Doubt you jump into selling it at low price.
So if you have been doing this, I will advice  its rather you don’t buy if you know because of fear and doubt you will be force to sell at low, as its not crypto-ethical.




2. Investing money you cannot afford to lose

Considering the volatile nature of how the crypto market works, another big mistake people make is investing an amount of money they can’t afford to lose, of which some go a long way to taking loans from bank just to buy a coin with the sole aim of selling it when it rises. And must times always end in regret when plan goes the opposite. Because even I have experience this several times with BTC, of which the last one I will never forget was buying BTC with my $100 college school fee in March 2021, hoping it will rise to pay my school fee and settle some bills, but the reverse was my case as my $100 turned to $50 in few days, of which my examination was fast approaching, and paying the school fee was the only criteria to write the exams, of which I felt really frustrated I can never forget.
 So it’s always advisable to invest an amount you can afford to lose in case of the worst case scenario, as the price of BTC will always fluctuate.  
  



3. Investing Before Researching The Coin

This is where most people fall victim, because you see a coin been promoted by a social media influencer or hear people talking about it and you just jump into buying it before making research, because just as scams exist everywhere, the world of cryptocurrency is no exception to this. A popular scam now in the crypto world is the creation of ‘’shit-coins’’ which is always targeted at newbies who has little knowledge of crypto. And a good example of this is ‘’Squid Coin’’, launched just after the release of Netflix’s last year’s most popular TV series ‘’Squad Game’’ of which the coin ran away with over $3.4million of people’s investment.
So if you have ever bought a particular coin without prior research, I will advise you to stop, and rather research before investing in a coin, as every penny matters, and I will be very grateful if this my thread could help you safe future lost.




4.  Not having a plan

Not having a target or goal towards your crypto purchase is also a big mistake majority of persons make, because it’s the plan which serves as a guide for action in times of need. Such plans as, How much risk are you willing to accept, How much money do you want to make, When do you plan to take your first profit or cash out completely, and Is the investment short or long term e.t.c.
Because these questions could go a long way and are very important question one need to answer before proceeding a crypto investment, as this serves as a foot print for an immediate action.
So, its always good to plan in all we do and crypto is no exception, as that gives us a clue on what to do next.




5. Investing Because a Coin's Worth Just Went Up

Another common mistake beginners make when investing in crypto is buying a particular coin just because the price recently increased. Because one major thing about most of these crypto value jumps is that they don't usually last as a result of the fluctuating nature of cryptocurrencies. Taking ‘‘Luna’’ for example, which after it’s great crash, the value massively later went up, which drew lots of attention, and people bought, and price dropped again.
So it's always important to think twice before placing a buy order of a coin with a sudden increase in price.




6. Buying a Coin Just Because It's Cheap

This is another big mistake people make, investing in a bunch of newly launch cheap coins with the sole aim of making profit selling it when it rises someday, which most times don’t always go as plan as a result of many pump and dump scam coins today in the crypto world. And they end up losing their funds to it.
So its not all coin who has the potential of going up 10000X, 1000X or 100X in the next few months or year, so investing in cheap coins, you just have to put more effect in doing more research in choosing the lucky right coins.




7. Following the Current Crypto Hype

You must have noticed some coins become public through the help of most celebrities/public figure or current trends and got a massive adoption, e.g Dogecoin promoted by Elon Musk and Squid coin influence by Netflix’s original TV series ‘’Squid Game’’ which later became a scam after they ran away with the revenue. So its always not ideal to jump into buying a coin promoted by hype or an influencer without due personal research.




8.  Investing in Just One Type of Crypto

This is another big mistake people make, investing in just one type of coin, because thou it’s not bad to start with one type of coin, but as time goes on, diversify your portfolio, because it’s not good to put all eggs in one basket, as no one knows the next minutes, because as a result of the volatile nature crypto, a coin can be skyrocketing now and in the next one minute crashing.
So that’s how crypto works, and diversification is the best option every crypto holder could do to either stable coin and the rest.




CONCLUSION

In conclusion, there is no short cut to success in crypto investment, that’s why I will advise anybody who wishes to invest in crypto to first achieve the very basic knowledge, so that you don’t regret with the loss of your funds.





Source
https://medium.com/coinmonks/top-7-mistakes-people-make-when-investing-in-crypto-24a4ade5056
https://www.google.com/amp/s/www.makeuseof.com/avoid-mistakes-investing-crypto/amp/

If we should outlines the tendency causes the newbies investor's to invest in wrong channels, i will not be forced to portray that their major objectives or concern is to get ride of making free profit for their investment, i know vividly that any investor primary intensions is to make profit.. but some investors have nothing like watch over as primary concern before investing. Really if any coin the price quick accelerating many people queue to purchase in order make profit, without putting a consideration factor of making a personal test and examination before enrolling into investment.

Just avoid all shitcoins, so you already avoid 3,6 and 7.

I disagree with number 8
Diversify your portfolio is good, but diversify to other shitcoins, do you think when Bitcoin price drop, the shitcoin will rise? nope, they only follow Bitcoin price. Diversify to other commodities e.g. gold, real estate, stock, plants.

1,2, and 5 are just common sense, it's not worth to discuss anymore.

Every thing listed as mistake narrows down to making quality research before making any investment decision. Shit coin investment is ponzi in disguise, If it must be included in a traders portfolio then knowing when to withdraw is part of the investment plan same with Bitcoin. for non researchers its best to Hold on to Bitcoin and if diversifying portfolio should be considered then real estate, metals is best.

To invest successfully, vision is key.

• In order to have good vision, an investor should have comprehensive knowledge on fundamentals of blockchain, cryptocurrency in general and Bitcoin or any altcoin in particular
• Investment plan should be long term because a long term plan will help investors to skip massacres within a day, a few weeks or months.
• Long term investment means invest with own money, no leverage, so no risk of liquidation

Lastly, remember "Not your keys, not your coins" so let's make sure you don't store your coins in custodial wallet on exchanges.

• Notyourkeys (https://cryptosec.info/nyknyc/)
• Security checklist (https://cryptosec.info/checklist/). A should-read resource.

If you want to look at it from a different perspective, and when I say this I don't mean to say that this will continue like this, but anyone who invested, and then at least held for 2/3 years profited massively, and not one of them lost money.

Depends, personally I don't believe there's any altcoins currently worth investing in, at least not for the long term. So, by diversifying if you mean outside of cryptocurrency as well as Bitcoin, that could be a good idea. Think like property etc. I'd probably agree, but diversifying into altcoins? I mean there aren't that many promising altcoins in the first place, so you'll likely get burned if you invest into too many.

i will like talk more about the number eight factor you mentioned, this is an exceptional, investing on only one type of cryptocurrency should not be a mistake only if it's on "bitcoin" and any other crypto posses more risk than as expected and investing more on them is like increasing the risk level the more in altcoins, if we are to advise any beginner to have a start on cryptocurrency then bitcoin is the only coin that should be a reference point, bitcoin is the only cryptocurrency that is worth deserving taking a risk else investing on other cryptocurrencies is a risk taken that does not really worth it and have higher chances of loosing than making gain out of it

Well, I have a question --why there are only 8 mistakes you have mentioned? There are too many factors that we should avoid not to commit mistakes upon investing.
If you are not an expert on investing altcoins, dont deal with it. Focus on bitcoin which is a safe investment, another possible mistake is dont store your coin on a centralized exchange or wallet. We have many reports of losing funds because they are newbies and dont know how to protect their coins. Invest in a long-term purpose that gives you a true profit when there is a bullish trend.

Yes.. You have a point there, and that's the reason why i came up with this thread, because i got to notice that the vices of not putting some of these factors into consideration, ha as made most persons lost a future that till date are still struggling to pay the debt. And if only one third of people on this forum could know these factors at their finger tip. The crypto community will be a safr place.

I can not do this with altcoins but I can do it with bitcoin. Although, not a good advice for newbies.

If the coin is bitcoin, why not? It is good like that. But, if the coin is altcoin, I think people prefer to diversify because some altcoins can fail to rise during bull run.

It depends. If it is bitcoin, I agree. Bitcoin all-time-high in 2017 was $19650, but its all-time-high in 2021 was $68900. Their were many altcoins in 2017 that has not reach their all-time-high in 2020/2021 bull run. Example are ripple, bitcoin cash, eos, qtum and many others. They may still reach all-time-high but it is getting far unlike bitcoin.

https://i.ibb.co/rbk8f3h/Screenshot-1.png (https://ibb.co/PTxXzMy)
https://medium.com/coinmonks/top-7-mistakes-people-make-when-investing-in-crypto-24a4ade5056

Seems you have been found to plagiarize, very disappointing OP, I really found your write-up good and was about to applaud you before seeing that you copied content without referencing the source, did you really go through the rules here? Because if you did you should have seen that plagiarism is very prohibited here.

Deciding to invest in crypto is in itself a large mistake. Investing in crypto is essentially investing in totally unregulated startups, and even in traditional finance startups are one of the riskiest investments and beginner investors are not advised to invest in them. And what makes crypto worse is that the technology is fundamentally broken, it claims to solve problem that aren't really problems, and it has tremendous downsides that outweigh its supposed benefits.

Bitcoin is the only cryptocurrency that works, all the alternatives are just money-grabs. This should be the common knowledge, not the idea that you can get rich by trading crypto.

I remember my first crypto mistake (https://bitcointalk.org/index.php?topic=5396005.msg59963920#msg59963920) which I wrote about. I made mistake number 2,3,4,5,6,7. I'm grateful I found this forum and I know better now.


There's is no consensus when it comes to diversification. It is purely based on individual preference. While a long term holder would disagree with you, while a crypto trader will agree. Assuming that I want to try out diversification,how do you advice I go about it.

Do not forget about those people that have taken loans to invest because of some of those mistakes you've listed. They've been hit by the hype so they FOMO and buy those coins that recently got high and they are left at the top as the coin's price start to dump.

There's nothing wrong in investing into one crypto if it's only bitcoin. That's even the better choice for everyone that have made a lot of mistake if they want to keep going on with the market.

Op paraphrase the tense, when looking at what is there you will know that op changes some certain words, and it can be that he used his initiative to write those things since the similarity is not much, because some people like view and copy, if you said about protocols many newbies don't like to pass through protocols because they are inquisitive to learn

That was actually what i did here, because it took me almost a week to compile this piece of thread that you see. I made my research and was able to write it the way i understood it with reference to how it apply to us forum member. And i am the last person that will do copy and paste on this forum, because i know how much the forum frowns at it. And i can never do that. So i render an apology if it likes slightly similar to the listed source. Thanks.🙏🙏
Long live the forum... Long live Bitcoin👍👍

You have been corrected, take this as a warning and make sure to give credit to the original author. One would think by now you would have added the link Lovemayfamilis provided to the OP. While it is possible to forget a source when researching a topic using numerous sites, when issues are brought up to your attention. It is better to make the necessary corrections.
Long live the Queen

Op, I want to let you understand that there is no rigid rule about plagiarism. I always tell other members of this forum that there is no rigid rule here. This is a forum of liberty just like Bitcoin.

The information is not that you should not copy from the internet. No man is an island of knowledge and everyone learns from everyone. Go to the internet, copy related things and bring it here. Only what you need to do is to add a link to the source you copied from. I don't think this is so difficult to do.

It is deceitful not to even add a link even if you didn't copy the exact words, but you copied ideas, you can put link and call it related articles (bibliography). It is allowed.

Bringing a good information you saw in the internet to the forum is not a bad idea but not referencing the source of your information is wrong and the forum is against it, you can spend year's gathering useful things that will be of benefit to the fourm but don't forget to what is necessary, good to hear you are aware of the forum rules so try not to go against it. Take corrections and do better.

Can you tell me how many rules do you think are not rigid out of the 33 rules listed here (https://bitcointalk.org/index.php?topic=703657.0)? I don't want you to underestimate the rules because I believe plagiarism will be banned on this forum without even needing a warning. It's great if the OP gets a warning and fixes the error, but what if no one else is willing to warn him and just report his plagiarism to a moderator to get banned?

I think you misunderstood what uchegod is saying. Plagiarism is plagiarism be it a single line copied or a wall of text without reference, the punishment is the same. It’s true that the rules for plagiarism is different for each person and are handled case by case. It’s believed from this thread (https://bitcointalk.org/index.php?topic=5388389.msg59430082#msg59430082) that moderators are becoming lenient than before to newbies committing plagiarism.

I agree with this point too. This goes against the rule of diversification because diversification is to put money in different aspect of business so that incase one is failing and the other or next might succeed and you gain or recover from the loss of the losing one. If you invest in just one type of coin with alot of money, it is not a good investment. It is better to put money in different coins like throwing your net in the river you never know the fish it will catch for you.

But I don't have a problem with that, putting my money solely to Bitcoin is not wrong because I was sure that my money is safe and certainly it grows rather than splitting it into several altcoins. Well, of course, it was the best option to pick some potential altcoins aside from Bitcoin as it was the most practices here.

Generally, it is all about fund management. Even having multiple assets cannot give us assurance and the future of our investment certainly lies on how we manage them.

3, 6, and 7 were just me during my noob days. This day, I know better. I suspect that those too may be common with every newbie especially that of buying a crypto because it's cheap. That dealt heavily with me. When I look back now, I smile at my ignorance. I used to think then that every crypto was going to soar like Bitcoin was doing then. That was in 2017 and Bitcoin was having a good time. I felt it was also the right of others to enjoy the same massive run of Bitcoin. How dead wrong I was. I paid for that experience.

Too often to realize what we have done before after losing some money and even see how these newbies are doing now. We can really picture what we are doing before during our early days in crypto while we still don't have knowledge and experience, and this is quite the same for the newcomer's journey.

And it was very fortunate that despite those hard days that we have in crypto we still have the courage to continue and believe ourselves to make things right. Can't certainly be perfect, but we are trying our best to make it perfect, right? That is why we care to listen to other's advice and correct our mistakes.

To survive as a crypto trader it's either you are reading and doing your research or the market reads you and take away your funds. If an investor chooses to hold on to just a single coin that shouldn't be a problem so far they are ready to study to know the next market direction it will likely take. Crypto is a world of research altogether it's either the trader outsmarts the market of it pays the market for it's ignorance.

These mistakes are done because they lack the knowledge, experience and skills which will eventually lead to success. However, for newbies, you cannot expect for them not to get mistakes and losses because they are still exploring the market while investing. But these mistakes will eventually impact them some valuable lessons that will make them knowledgeable and become wise in their decisions. Everyone here started from a scratch, before they succeeded in their crypto investments.

I want to talk on your number 8 mistake you mentioned. For me I see no mistake whatsoever in investing in just one particular crypto especially when you have a great awareness of such crypto instead of diving into Jack of all trades and master of none kind of thing.

Cause it's empirically possible you can invest into three different cryto and still end up lossing, either serially or simultaneously.

If it is bitcoin you are investing on, I see no reason of going for other coins, but if it is altcoins you want to invest on, some altcoins may rise in value and price while some may remain stagnant and not rise during bull run. It can be unfortunate that someone can invest on a single altcoin and the altcoin did not rise in bull market or it may not rise to the extent it supposed to rise which can be very frustrating and disappointing. That is the reason people advice people to invest in more than one altcoins. But for bitcoin investment, you will definitely make profit.

I think to an extent mistakes are inevitable because no one is perfect but out of our imperfection shouldn't come a stupidity, just as OP was trying to address some mistakes done when dealing with cryptocurrency and unknowingly making a mistake as well that goes against the forum rule, but he quickly realized his wrong and amend it, imagine if we cannot give credit referencing the author of an article, how can we then confide trust on other aspect or areas we talked, post or comment about to be true and genuine, this is also a lesson to us all to be transparent in whatsoever thing we do and give honour to whom it is due.

Diversity is very important in cryptocurrency, not putting all investment in one coin. When taking decisions to diversify cryptocurrency investment it does mean one should all his new investment buying coins that are not reliable. Investment must be with coin that has good qualities and market value.

Seriously!!
Thank For Sharing This Information. Its To Helpful for Investor.
Personally For Me

They should also learn how to control properly their emotion in different market situations. One of the mistake of some traders/investors is they let their emotion control them resulting for some impulsive decision that should not be made. If there is a fud that shakes the market, they quickly sell their crypto out of fear. If market is going parabolic, they get greedy and set unrealistic targets until that crypto dumps and they miss the chance to gain profit.

My understanding of portfolio diversification is that we will invest in many different areas, not in many different coins. It won't be true if you invest in shitcoins without investing in bitcoins, or if you just invest in bitcoins and don't need a lot of shitcoins. Crypto market is not like other markets, everything here is dominated by bitcoin, if bitcoin goes down then no coin can go up or vice versa. Diversifying crypto investments isn't bad, but it doesn't make much of a difference.

There are always lessons to learn in crypto because people who want to make quick money always make mistakes and we continue to learn from them, even as a bitcoin Maxis, you will sometimes make mistakes that you may not realise on time but they make us even stronger and wiser in making future decisions.



I have just gone through the website you are shilling, nice way of including a promotional website into a nice discussion, the website is having good faces of the team, and they have the potential of making good sales in their shit coin, what I was so interested in was the part they said they are partners of Binance. Nice one comrade!  ;)

Diversification brings not only the opportunity to "catch a bigger fish", but also to squander one's resources on a "fishless river". It seems to me, Investing in Just One Type of Crypto, not such a bad idea if this crypto is bitcoin. Spreading your money across other altcoins not only increases the chance of losing it, but it also reduces the return on investment in the bitcoin because there is less money left to spend on it. The pursuit of "very big fish" may be fruitless and it is better to be content with the "medium fish". All the same, at least some "catch is better without a catch at all". Pardon the "fish" metaphor.

There is a need to do enough research before making any investment. It is important not only to invest in different coins by sharing funds, but also to see what the market situation is and where the market trend is. Most new investors do not follow what you say. As a result, they face huge losses. This is a perfect example of what happened in the crypto market in recent times with luna coin, why you should not invest all your money in one coin.

The forum kicks against Plagiarism and we should not fall victim and be caught in the act, i see you've done the needful. You did a very good job with the post though, alot of people make these mistakes when investing in cryptocurrency especially newbies i just hope they can learn from this.

This is exactly. Buying high and selling low commonly happens because someone is facing or experiencing a panic situation. The reasons may be because of the FUD or market correction of the price itself. That is why people will panic automatically and sell their coins directly because of the panic situation. This may not happen if we can control ourself to be calmer to face the day.

This is also another reason why especially newbies can lose their money so easily because they only follow the crypto hype without any analysis at first. We know that crypto hype is very interesting and makes most newbies desire to invest in that hype.

Investing in cryptocurrency is something that can be very worthy and also risky at once. People may get high profits from investing in the crypto industry, and o the other hand, vice versa, people may lose much money because of crypto investment. This can happen because of some problems and reasons. Seriously, these 8 mistakes very often happen in the crypto industry, done by mostly beginners and also people who have been here in the crypto world for longer times.
Yeah, as like here:
They even don't learn moreover analyze the coins or projects that they want to invest. They only follow the hype from high promotions by most influencers. Sadly, people are only interested in the profits, but they cannot learn and control their funds. That is why many people are also not ready with the risk of losing. In this case, they cannot afford to loose. Moreover investing in coinwithout any research is something that is very risky, like gambling in certainproduct only.

I would also add 2 more.  1)  Thinking you're going to get rich quick and 2) Failing to take profit, at the least to recoup your initial investment.  Otherwise, the market has a hard way of teaching lessons.

It ain't no problem investing only to one crypto if it's bitcoin. Diversification isn't bad but if you're a maximalist, it's also not a problem because I've seen those maxis that have been made well, and even until now, there are plenty of them that are just silent.
There also goes those investors that have been holding for long even before the 2017 bull run and never sold up to this point along with the last bull run of bitcoin that hit $69k.

A very good post it just too bad that it a plagiarized work, because this provide alot of good information to many members of the forum. I believe you know plagiarized works are prohibited to this forum, please do endeavor it doesn't happen again.

However, never take this method as a big mistake because there are many people who are willing to ignore dozens of altcoin to not include in their portfolio just to invest in bitcoin alone. They only have bitcoin in their portfolio and ignore the long term potential of altcoin, so what big mistake did they make?

Even if diversification is good but if one is only investing in bitcoin then it is actually a very good option. Bitcoin is still much better in the long run than thousands of other altcoin, so obviously that shouldn't be taken as a mistake. After all, don't put your eggs in one basket - This doesn't necessarily mean you have to diversify your assets for several different altcoin, but it's kind of a way you keep some of your assets in different wallets.

Gold rules! i wish everyone could see this before entering the crypto world!