Mistakes in crypto Investment

[Itz-prisigold]

The biggest mistake some people make is focusing on the current price of bitcoin, whether it’s cheap or expensive isn’t really a criteria to know when to buy or not. No one has the slightest idea of what the price might look like in the coming years, so waiting for the perfect entry can become another form of procrastination.  The most important thing should be the entry price but having a realistic amount to invest with, having a reasonable amount for your emergency or for backup and having and maintain a long term mindset to hold your asset through thick and thin times, especially during moments that the market doesn’t move in your favor.

Another error most investors still do is putting money that they might need in the near future. Sometimes your original plan is to hold for long term but when unexpected events occur you'll have no choice than force yourself to sell at a bad time, as you didn't give yourself enough financial breathing space.

I also believe that sometimes people will start increasing the investment amount just because they see the market price going up.  When everyone is excited, it becomes easy to get tempted to invest more than you can afford, but excitement is not enough reason to go above what you can comfortably afford.  To me, it's better to have a budget and stick to it than to follow whatever is going on in the market.

[L E G E N D A R Y]

Another error most investors still do is putting money that they might need in the near future. Sometimes your original plan is to hold for long term but when unexpected events occur you'll have no choice than force yourself to sell at a bad time, as you didn't give yourself enough financial breathing space.

I also believe that sometimes people will start increasing the investment amount just because they see the market price going up.  When everyone is excited, it becomes easy to get tempted to invest more than you can afford, but excitement is not enough reason to go above what you can comfortably afford.  To me, it's better to have a budget and stick to it than to follow whatever is going on in the market.

A lot of people end up overlooking the financial breathing space simply because they focus more on their investment strategy and less on their personal finances. A person’s long term goals and plans may be strong and solid, but it automatically stands a chance of failure the moment one emergency forces them to liquidate their investments at the worst possible time. The best way to prevent such disaster from happening is to have a very solid emergency fund in place and also a fixed investment budget as these could potentially help to protect the investment strategy from unexpected financial crises.

[BitBakerr1]

Another error most investors still do is putting money that they might need in the near future. Sometimes your original plan is to hold for long term but when unexpected events occur you'll have no choice than force yourself to sell at a bad time, as you didn't give yourself enough financial breathing space.

I also believe that sometimes people will start increasing the investment amount just because they see the market price going up.  When everyone is excited, it becomes easy to get tempted to invest more than you can afford, but excitement is not enough reason to go above what you can comfortably afford.  To me, it's better to have a budget and stick to it than to follow whatever is going on in the market.

The best way to prevent such disaster from happening is to have a very solid emergency fund in place and also a fixed investment budget as these could potentially help to protect the investment strategy from unexpected financial crises.

We can’t underestimate the importance of emergency funds, emergency funds is very important to maintain and sustain an investment for long term.
Emergency funds is the only thing that can prevent you from dipping hands into your investment when you have an emergency situation at hand.
There are some emergency situations that will come up, but you don’t have money to solve that situation or emergency at the moment but if you have an emergency funds, you can just use it to solve the issue and you need to have a very strong emergency funds so it can solve any emergency issue that comes up no matter the amount it will require.

[SamReomo]

Another error most investors still do is putting money that they might need in the near future. Sometimes your original plan is to hold for long term but when unexpected events occur you'll have no choice than force yourself to sell at a bad time, as you didn't give yourself enough financial breathing space.

In order to be safe from such type of mistake one has to keep some money in a separate account for emergency. The money that one invests for long term holding should never be touched and when a need arises one should take money from the emergency fund instead. Selling your assets in loss isn't the way of the holders, it is actually the way used by the weak hands.

So when someone plans to buy an asset like Bitcoin or another good asset for long term holding then the person should never sell it. Those who can hold their assets for long term are the ones who make maximum return on investment. So be like such people who hold for long term and have maximum profit from your investments.

[Cossyblack]

By now everyone should know that borrowing money to trade is completely wrong, just because you want to trade doesn’t mean you should cause problem for yourself. Don’t allow people discourage you that trading is easy, and don’t allow anyone make you feel trading is risk free, and so profitable.

I always discourage people to take loan just because they want to trade, but whatsoever you tell some people, they won’t listen, so if you want to take loan to trade, make sure you have a source of income that will be able to pay the loan which you took Incase if anything happens. Some people have committed, some did things which they are not suppose to do because they borrow money to trade, and things didn’t go as planned. 

Borrowing money to trade can lead to suicide,yes because he might take his own life if things don't work out as planned and that's not good. This is why i don't encourage people to borrow money for trading because of the after consequences.  A trader could take his own life or go into hiding out fear that he might be arrested to pay back the loan he took, i wouldn't like to see someone that I know go through all that stress just because of a loan.  However, i have been hearing about people who took their own life because they couldn't pay back the loans that they took,the consequences are often extreme.  If a trader should borrow money, he should only borrow what he can be able pay back without depending on the profits from his trades.

[cxtreenal]

By now everyone should know that borrowing money to trade is completely wrong, just because you want to trade doesn’t mean you should cause problem for yourself. Don’t allow people discourage you that trading is easy, and don’t allow anyone make you feel trading is risk free, and so profitable.

I always discourage people to take loan just because they want to trade, but whatsoever you tell some people, they won’t listen, so if you want to take loan to trade, make sure you have a source of income that will be able to pay the loan which you took Incase if anything happens. Some people have committed, some did things which they are not suppose to do because they borrow money to trade, and things didn’t go as planned. 

Borrowing money to trade can lead to suicide,yes because he might take his own life if things don't work out as planned and that's not good. This is why i don't encourage people to borrow money for trading because of the after consequences.  A trader could take his own life or go into hiding out fear that he might be arrested to pay back the loan he took, i wouldn't like to see someone that I know go through all that stress just because of a loan.  However, i have been hearing about people who took their own life because they couldn't pay back the loans that they took,the consequences are often extreme.  If a trader should borrow money, he should only borrow what he can be able pay back without depending on the profits from his trades.

If that business is established and running, you can expand the business by taking loans. If someone takes loans at the time of starting, it will be a suicidal decision for them. I have seen some traders take loans to buy altcoins during a price drop. I don't know if they have alternative sources but they are taking maximum risk in trading because if for some reason the market drops further they will lose and there will be pressure to repay the loan with interest on time. Such traders lives are at risk and they commit suicide because they have no other option.

Although I personally do not like taking loans, I have taken loans several times to buy Bitcoin and I took risks because there was an alternative way to repay it and it was beneficial for me. A person can borrow during the long term investment journey when the price of Bitcoin dips and if he has an alternative financial backup to repay the loan.