Over the week, I had a group of three young men and a lady who were referred by a friend for some investment advice in Cryptocurrency. They came with so much expectations and enthusiasm so glaring on their lips that was hard to be hidden as they poured out question after question. After some conversation with them, I asked them what they wanted, why Cryptocurrency and which one(s) they do have in mind. Amazingly, the group of four unanimously responded, " we want to buy the REAL bitcoin(BTC) not any other".
In this post, I will highlight briefly some of the mistakes newbies make that I shared with them.
#1. Making a coin/token your favourite: most newbies only know about Bitcoin and a few, know a little or nothing about Ethereum and other altcoins. "King btc" has already escaped and you cannot make times 50 of your investment as it is right now (btc at $11,838). My advice has always been to go for the "responsible heir apparent" with a promising future that can do up to 1000-2000%. Remember, the coin is not your father's property and even if it were so, there would be someone's better than your dad's one day.
#2. Lack of workable research (i.e. fundamental, technical & emotional analysis) and guidance: I recommend one spend at least a month doing your own research & finding facts before you take a step. Your friends Google and Youtube are always there for you. Also get yourself familiar with the terminologies like, pump, dump, moon, dip, TA, FA, DYOR, etc as used in Cryptocurrency.
#3. Impatience: Most newbies think and want a get it quick kind of returns and will likely fail to decipher when to hold, trade or dump.