5 mistakes to avoid when investing in Crypto

[Pamadar]

1. Do not invest first if you are not knowledgeable in the technology of the cryptocurrency you are buying.
2. If a new investor immediately believes the hype of those supported by celebrities.
3. If they hear bad news, they are panic selling.
4. If all the money is in just one investment, it should be divided.
5. No strategic planning.

With said so, everything have big impact to every traders who don't understand what they are doing inside this business.

#5 carry the weight as before investing you should plan everything, it saves you time and money that you'll going to spent during your
participation within this business, if you set your plans and strictly follow everything according to how you percept the market. Chances
is high for you to succeed..

[gwdf1]

Most of my friend who loss in this crypto crying because they don't know what they invested in.

They just joining the hype without knowing the project he invested in and when the price falling they just talking shit about their own decision.

But the important thing is, just spend money in crypto when you afford to lose it because crypto is totally diferrent with any other investment (Stock or etc).

Lack of cryptocurrency knowledge make us suffered huge loss, speculation be main reason why they couragely invest their money into this market even they didn't know what actually it is. And the important point is , they didn't ready to face loss and accept the fact

If a bull run starts in the cryptocurrency market (basically every financial / investment market), it is mainly because are investing people who don't know what they are doing, and the only reason they are investing is greed and that they can see that the chart is growing right now.
That is why it is said that you should sell when the hairdresser and taxi driver persuade you to invest - they are simply the people who do not know what they are doing and it is a signal that the bubble will end soon.

Oh yeah, a really good note. I used to do so when I worked in the stock market. For example, when well- known bloggers advertised some companies it was a message for me  that it was the right time to sell soon, as first of all price might increase because of followers of these bloggers and secondly it means that new investors can come. And it goes without saying, that when a crowd of people come somewhere, it will not be profitable after this hype.

[TastyChillySauce00]

Number 4 is the most important one. As a Newbie, the FOMO force is very overwhelming and you can make decisions that can easily rekt you. Though newbies would be newbies

Yeah fomo and panic selling is like the biggest factor that causes people to make a really bad decision.
Im myself still gets trapped by the fomo or panic selling sometimes, when the market feels like its gonna go up so high or gonna go down so hard our feeling usually gonna take over and influence us.
Even many expert traders also gets influenced by that and its undeniable that to go against your fear in trading it needs years of experience. Usually though people overcome this using technical analysis.

[Robinson66]

Before entering the crypto market, you must understand the market and don't run rampant. This still needs to be learned, otherwise the money you invested will be in vain, and don't invest all your money, but also have the courage to take risks and don't be afraid of failure. Find experience in failure.

[Bravehash]

The best advice I can give on this is to follow the warning of Warren buffet that says be greedy when others are fearful and be fearful when others are greedy, I don't buy when FOMO is alive this is a time to sell not buy, also make sure gou invest only on what you understand

[indrakusumaindra]

If you are a newbie in crypto world you are bound to make some mistakes but this thread is for you on how to avoind making those mistakes

1. You dont want to skip the learning part- You need to have an idea of what youre going to even if it is to make a research about it. You have read about an asset before you invest in it to know exactly what they are building.

2. You want to avoid using the wrong crypto exchanges. This is one thing you want to avoid because it can make you lose all your assets. You need to research about the exchange before even registering. Some exchanges have fake volumes and are not transparent enough.

3. You dont want to rely on a single coin- Diversification is very important when it comes to investment. You dont want to put all your eggs in one basket.

4. You want to avoid the fear of missing out (FOMO)- When you see everyone buying a trending coin you dont jump in, it might too good to be true

5. You dont want to forget the basic security. Keeping your private keys safe is very important. As a newbie you should understand how important private keys are. Also 2 factor authenticator shold be added to all your exchanges

I dont think its bad to put all your money in single coins. Its depends what coins you investing and i dont think diversification is the answer for safety of investments. Divesifications in investing means you invest not only in crypto but on stock and other financial instruments like bonds and land. Its okay to buy more than one coin but you need a reasons why you buy so many coin not just because diversification but cause you believe the potential in the coin that you buy.

[_MrTuyul404]

This is very helpful for a newbie, because most newbies are always influenced by FOMO which can cause very high risk