Some Common Mistakes Made by New Crypto Investors

[Hyphen(-)]

-Lack of Basic Crypto Knowledge: Some people are drawn to cryptocurrency because of the excitement and profits associated with it. As a result, people become obsessed with making money and fail to understand how it works. Without the proper understanding, you run the risk of losing your assets quickly.

I categorize everything in this first one; basic knowledge is the key to every success; if a beginner waits patiently and learns the basic knowledge and experience about anything, it will be easier and the losses will be minimal because he/she will know the right and wrong things involved, as well as the risks involved. Furthermore, the new knowledgeable investor would need to learn about keys and addresses, as well as how to keep his or her private key safe.

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[cryptoaddictchie]

Never share any personal information and never connect your crypto wallet to any untrusted applications.

Most crimes happened online and it will occur in the least you expect it. Ive been hearing a lot of hacks and scam everywhere where their asset was transferred or stolen. Yeah this is happening on non custodial wallet so its kinda bit scary. It does mean that someone connect to a malicious link or application resulting to his compromise wallet. This should be wary by all the categories above since it could really happen at you. So avoid these links that you arent familiar and always check the site 3x or more cause you could be deceive by just a letter error or typo.

[Outhue]

-Keeping Crypto in Online Wallets: Keeping your cryptocurrency in exchanges or online wallets does not provide complete protection and is easily compromised. Because online wallets do not provide the same level of security as offline wallets, it is preferable to keep your valuables in an offline wallet.

You should talk more about custodial wallets vs non custodial wallets, online wallets are mostly custodial wallets, meaning that the team are the ones in charge of your security keys e.g private keys or recovery seed, any wallet that failed to give private keys or recovery seeds to their users are custodial wallets.

Also, even if the crypto wallet is non-custodial, you still have to make sure that its open source, because if the wallet is a closed source you won't know how transparent they are, they can give users access to their wallet keys, and the wallet devs still have access to users' wallets themselves.

[SOKO-DEKE]

-Lack of Basic Crypto Knowledge: Some people are drawn to cryptocurrency because of the excitement and profits associated with it. As a result, people become obsessed with making money and fail to understand how it works. Without the proper understanding, you run the risk of losing your assets quickly.

The path to success is always paved with knowledge. If you don't know how to do what you want to do, you will undoubtedly fail. To avoid losing everything losing, we therefore need the fundamental knowledge that will serve as our guide, particularly in the cryptocurrency industry. As you mentioned, a lot of people simply enter the cryptocurrency industry with the intention of making money. I believe that their the set of people who were duped into investing in shitcoin and losing every penny they had invested in it made the crypto industry look like a ponzi scheme and discouraged others from entering it.it hard to be successful without knowledge.

-Getting Scammed: Cryptocurrency users have now become a target for cyber criminals and scammers, the rate at which people are conned online is getting out of hand. These criminals employ a variety of strategies, so I urge everyone especially newcomers to use caution when interacting with others online and avoid falling for their cunning tricks and fake promises. Never share any personal information and never connect your crypto wallet to any untrusted applications.

Anyone can become a victim of scammers because they are always coming up with new, unique tactics, but they rarely have the chance to take advantage of experienced cryptocurrency industry professionals because of the knowledge they have, so these scammers are primarily targeting newcomers.but it will not be also easy to scam those newbies who are not aiming to get quick money from Crypto industry because all mostly this scammers are using big turn found  format to convince newbies.

[sunsilk]

This is really a common mistake by most newbies. They think that it's fine to keep their assets in online wallets or exchanges where they are trusting most. They do trust the exchange but they don't know what's the importance of holding their own keys.

The result isn't great at all because we know that this is an important fact being in here. If you don't hold the keys, it means that you don't hold your crypto. And that's the same with the assets being kept in exchanges, you're just seeing your deposited asset but it's no longer you that owns it while it's there.

I think everyone made this mistake once. I used to keep my assets in exchanges and in mobile wallet where I didn't had the control of my own coins. But later I lost some coins form my exchange and they told everyone that there exchange was hacked. I know it can truly be hacked by others or simply they just removing balance from the users and label it as hacked.

Online wallets and exchanges are easy to use compared to wallets where you have the private key or seed phrase. For the advertisement and easy to use reason newbies keep their coins at online wallets.

It's true that using exchanges and online wallets are easier because on how they're being marketed, that's why everyone seems to be confident and comfortable using them because of how accessible they are and ease of access.

But, the truth has to be said and usage of it will determine on how knowledgeable you are with these type of keeping of your assets.

If you're not too careful and don't do researches then, your confidence will stay on them and when they're hacked there is a possibility that your funds might be gone forever and they have to reason out that no refunds will be made.

[Mpamaegbu]

-Lack of Basic Crypto Knowledge: Some people are drawn to cryptocurrency because of the excitement and profits associated with it. As a result, people become obsessed with making money and fail to understand how it works. Without the proper understanding, you run the risk of losing your assets quickly.

Here, you should've added "greed" too. Lack of crypto knowledge can be adjusted where the level of greed of the noob is under check. Sometimes investors get carried away by the ROI or APY promised without reading between the lines to discover the hidden scam. Last year I had to do an intense sensitization to some members of my church who were getting into a so-called BTCs mining site. I saw the format for registration on the site and knew it was not right. How do you ask people to do a KYC with passports and all that while the site had not debuted. I told my brethren it was going to end in tears. Did they listen to me? No! They were all carried away by the promises made by their uplines. Imagine turning crypto investment into an MLM 😂

[_BlackStar]

Here, you should've added "greed" too. Lack of crypto knowledge can be adjusted where the level of greed of the noob is under check. Sometimes investors get carried away by the ROI or APY promised without reading between the lines to discover the hidden scam. Last year I had to do an intense sensitization to some members of my church who were getting into a so-called BTCs mining site. I saw the format for registration on the site and knew it was not right. How do you ask people to do a KYC with passports and all that while the site had not debuted. I told my brethren it was going to end in tears. Did they listen to me? No! They were all carried away by the promises made by their uplines. Imagine turning crypto investment into an MLM 😂

Without proper knowledge plus greed and stubbornness is just fast road to failure. I'm sure you don't look like you want to manage those people at all, just give them knowledge - but only fail because of their greed and trivial attitude about the risks behind the sweet promises.

I don't think we are responsible for other people's failures, but it might be good to get them to become more knowledgeable at something they are not completely good at. But this will only give them experience that might be useful in the future.

[taufik123]

-snip-
I don't think we are responsible for other people's failures, but it might be good to get them to become more knowledgeable at something they are not completely good at. But this will only give them experience that might be useful in the future.

Depends on the initial agreement, but most people will not be responsible for someone else's failure to cause financial loss.
Therefore giving a "DWYOR" warning is very important so that no one complains when someone fails because of our suggestions.

Failure due to follow other people's advice will be a valuable lesson, don't trust too much before doing your research first.
most new investors only think about profits, and they forget that cryptocurrencies are very risky, Losses will come anytime and don't look at anyone.

[GigaBit]

Investing in cryptocurrency can be thrilling, but many inexperienced investors make basic errors because they are so excited about the profit people make from trading cryptocurrencies that they believe they can ignore the small precautions and guidelines, resulting in the loss of some or all of their assets. So this post aims to increase knowledge among crypto novices so as to prepare and prevent them from repeating the same errors that have been made previously.

Some speculate that money in the crypto space can be multiplied several times over a short period of time, which can give an investor higher returns over time. Many people think that the return on investment in this platform is very high. Many new investors are misled by wrong information which later causes them huge losses. I think an investor should come up with a long term investment plan otherwise he will be at risk. I consider excessive greed as a common and big mistake as the new investors. Another big mistake is that some new investors invest in this platform without having proper knowledge.

[indah rezqi]

>Snip
I don't think we are responsible for other people's failures, but it might be good to get them to become more knowledgeable at something they are not completely good at. But this will only give them experience that might be useful in the future.

Exactly, I agree with your statement. No expectation mentor who doesn't get paid anything responsible for the loss of his protege when they don't listen to directions at all. Not at all, you don't need to be responsible for their losses and greed, and they should know what the risks are. Only stupid people don't realize their mistakes, while smart people hear what their directions are (unless they mislead).

Several common mistakes have been known, all of which are natural due to the ignorance of investors about the risks of their investments. There is no single investment without risk, and they should also really know that the risk of investing in crypto is even higher than other physical investments.

[Sanitough]

I think the biggest mistake new crypto investors or beginners make is too high or unrealistic expectations that they will get rich overnight through crypto investing.
It's important to be well informed about everything before any investment, analyze the market in detail and only then make a rational investment decision based on facts and not emotions or expectations.
Of course, it is always important to take care of Internet security, but you should also have a concrete investment plan and a clear exit strategy.
The problem with crypto is a lot of young and uneducated investors who don't understand the high risk of crypto investing.

You have a good point. Newbies are motivated to invest because of the wrong mindset that crypto can make them real quick rich. That’s why they put all their hard-earned money thinking that it will double or triple overnight. But that’s not how crypto works. It is more of a long term investment so you have to put all your knowledge and patience hodling it to avoid end up making wrong decision that you will regret in the end. And as always, if you plan to invest in the market, always know your investment first and understand how it works. That way, you can focus on your goal and set plans on how to achieve it.

[Finestream]

People's failure to educate themselves about crypto is their first and most significant mistake. Many initially believed that cryptocurrency was a relatively high way to gain money quickly. The truth is very different. Even novices lack the knowledge important to protect their assets. The main issue is that people get greedy and fall victim to various cryptocurrency scams. After losing money, they do study and learn. Hence, we ought to learn as much as we can. We will be safe once we have a comprehensive understanding of crypto.

I think newbies do not actually gain much knowledge in the beginning, because they prefer to experience first and when their investments have turn into losses, that’s the time they will start gaining basic knowledge and understand how crypto will become profitable. Although I am not against about it as experience will always be the best teacher, but if they can be more knowledgeable and knows the value of crypto investment in the first place, then they can avoid much losses in the investment process.

[Asiska02]

-Keeping Crypto in Online Wallets: Keeping your cryptocurrency in exchanges or online wallets does not provide complete protection and is easily compromised. Because online wallets do not provide the same level of security as offline wallets, it is preferable to keep your valuables in an offline wallet.

You've made an excellent point here that newbies should avoid at all costs. Many people have lost their life savings in the cryptocurrency market as a result of a hack or attack on the online wallets and exchanges where they kept their money. This has only fueled negative sentiment toward cryptocurrency and deterred people from investing in it. However, this should only deter the uninformed. To avoid loss, it is best to keep your funds in an offline wallet, as was the case with the FTX bankruptcy scandal.

Finally, I advise my fellow newbies to never overlook minor details that they may believe are insignificant, as they may be the deciding factor in their crypto adventure's success or failure.

In terms of cryptocurrency, no risk or warning information is insignificant. The one you ignore could be the one who causes you to make the biggest mistake or regret of your life. As you suggested, no newbie should dismiss any detail as insignificant and should treat any red flag with urgency in order to avoid any type of loss or regret in the cryptocurrency market.

[Justtoons]

Sometimes, people gets over excited when they hear about the benefits a friend gets from the crypto investments and forgets to ask about the pros and cons that person went through before he got that achievement. This can lead to loss of capitals to scammers or maybe investing at the wrong season. it's best for them to learn from their mistakes as it will give them new ideas on how to go about trading or investment.


And to add to your points stated, most newbies don't really know the right persons to get advice from. Anyone can feed them with wrong ideas or information which will mislead them when making decisions.

Finally, I advise my fellow newbies to never overlook minor details that they may believe are insignificant, as they may be the deciding factor in their crypto adventure's success or failure.

And yes, newbies sometimes don't wait to read some important terms and conditions before hitting the confirmation or accept buttons. They just assume that those many things are not important or too much for them to read.

[Taskford]

People's failure to educate themselves about crypto is their first and most significant mistake. Many initially believed that cryptocurrency was a relatively high way to gain money quickly. The truth is very different. Even novices lack the knowledge important to protect their assets. The main issue is that people get greedy and fall victim to various cryptocurrency scams. After losing money, they do study and learn. Hence, we ought to learn as much as we can. We will be safe once we have a comprehensive understanding of crypto.

I think newbies do not actually gain much knowledge in the beginning, because they prefer to experience first and when their investments have turn into losses, that’s the time they will start gaining basic knowledge and understand how crypto will become profitable. Although I am not against about it as experience will always be the best teacher, but if they can be more knowledgeable and knows the value of crypto investment in the first place, then they can avoid much losses in the investment process.

What newbie trying to adopt are those risky decisions to invest without even thinking about what they are doing since they believe that this is easy get rich scheme for them that's why they flop and lost there money instantly. If newbie should research all necessary things needed especially basic information about crypto for sure they can minimize the risk about it and also they also need to learn how ponzi schemes works so that they can avoid such different types method exist to avoid get scam by random scammers.

[Luzin]

For me, this is a common mistake for new people entering the cryptocurrency world.
While this is a MUST-HAVE thing to have when you are in cryptocurrency. Basics will help you to be safe, smart, and profitable whenever which path you will pursue in the world of cryptocurrencies especially in investing.

Several times I observed my friend who was just about to join. The error the OP wrote is correct. But one that doesn't exist, they don't want to survive. Those who asked for help against me didn't seem to continue to trade. They took off after feeling at a loss. Whereas trading must have the courage to lose and continue to persevere and learn.

I think whoever he is if he just comes in should be ready to lose money. In addition they do not train much to trade with technical, fundamentals. They don't have a strong desire because they have a main job that has a definite result.

[Smack That Ace]

The common mistakes you mentioned will all be fixed after you have the knowledge, so knowledge is the only thing a newbie needs. As a newbie shouldn't be in a hurry to buy bitcoin or invest without any knowledge of it or through someone else, what they need is to read some basic information about the market. Once you have the basic concepts, go slowly step by step, then newbies will have their own initial knowledge and experience. Investing is a long journey, never think it's too late to invest or miss an opportunity, the opportunity will always be there as long as bitcoin remains.

[akuntester1]

The common mistakes you mentioned will all be fixed after you have the knowledge, so knowledge is the only thing a newbie needs. As a newbie shouldn't be in a hurry to buy bitcoin or invest without any knowledge of it or through someone else, what they need is to read some basic information about the market. Once you have the basic concepts, go slowly step by step, then newbies will have their own initial knowledge and experience. Investing is a long journey, never think it's too late to invest or miss an opportunity, the opportunity will always be there as long as bitcoin remains.

Basic knowledge of cryptocurrencies is the main key.
The rest will go easier if the individual can control himself and keep learning.
Most beginners rush because sometimes they are too tempted by other people's profits and success.
Sometimes some beginners take things for granted, are too confident and have too high expectations.
They think it will be easy to just buy a few coins and then they will make a profit.
Without thinking long and without having clear goals, only thinking about profit without being accompanied by the basic knowledge that must be possessed.

I admit that I was a beginner who was too hasty by buying some shitcoins because of a suggestion from a colleague at my work.
Without doing research and clear goals I immediately bought and the results were not as beautiful as expected.
Luckily my friend directed me to this forum, here I learned a lot of tips and basic knowledge about cryptocurrencies.
But I think sometimes beginners may have to experience mistakes so they can improve themselves and their mindset to be better.

[rozak]

Without doing research and clear goals I immediately bought and the results were not as beautiful as expected.

that's on a beginner's mind, cryptocurrency is a trade. they come to the exchange, create an account, deposit money, and buy some shitcoins that they feel will make the pump.
they don't think how big Bitcoin would be if they studied more.
it doesn't matter, everyone comes to the crypto market with their own goals. and you get your experience, it is quite valuable if you take lessons from your experience. a friend always said to me, every beginner, learn Bitcoin, trade Bitcoin, and Invest in Bitcoin.

[CryptoHeadlineNews]

That's an excellent work you just did @ O.P on this thread, because those are actually some of the big mistakes newbie crypto investors make on a daily basis, which means if only we could promote the awareness of these key facts, I'm sure we will have a safe free crypto environment. But another vital mistake I have notice most newbie make on this forum is focusing on bounty fo their first 2 to 3months, while ignoring the most important thing which brought them to the forum,  (i.e Bitcoin and how it works) and strive to grow, but rather comfortable promoting a bounty that they could barely earn a dollar, because I once did it and I know how frustrating it could feel.