For all the newbie crypto investors ;)
Crypto market is a growing one, it is easy to make in it. You can probably pick any of the top 10 coins randomly and expect to be in a green if you are willing to wait long enough. However I have noticed that there are a couple of mistakes that people repeat often and make it harder for themselves.
Panicking when bubble happens - Crypto is a volatile market, it grows exponentially but corrections happen and will happen. You can make money at it, but expectation to be profiting every day is unrealistic. When you enter crypto game you must understand that crashes happen, they take some time and then market rebuilds itself and becomes bigger. You must have patience to wait it out.
Expecting immediate profits - Once you make a research and buy a coin that you like, stick with it. You do not have to check how it is doing a couple of times per day, it is the equivalent of going on a diet and checking your weight every five minutes. If you are investing into something, it should be for the longhold. As long as the fundamentals of the coins that you bought do not change, it does not matter how it is doing on a given day.
Expecting too big of a profit - It is virtually impossible to become rich overnight with crypto, you can improve your finances but you have to be willing to wait out some time. Months or years even. Crypto is not a get rich quick scheme, but many people made a lot of money off of it. It just takes longer than a week or a month.
Buying when a coin is massively in a green - Don't jump on the hype. If a coin has gained 100%+ overnight it doesn't mean it is going to continue to gain in value. After a coin pumped it is usually often and a major correction is due. Don't have a feeling that you are going to miss out. Green is the seller's market.
Selling in the red. - Red is the buyer's market so don't quit on a coin too early. Coin can struggle for weeks/months before making a breakthrough, and no one knows when it will happen. If you invest in a coin that you like you must give it time to realize its potential. Otherwise you are going to sell and look for another investment opportunity and end up chasing every coin in the market. Most of the coins that I have lost money at is because I have sold them too early, had I waited a bit longer I would be in the green.
Having too many coins - It is important to be diversified but every one of us has finite resources. There are hundreds of coins and countless ico's. But you don't have to own them all. You should focus on creating a portfolio of a couple of coins which stand out. Look for the biggest longterm potential, the best technology and for the coins that are undervalued.
Cashing out all the profits into fiat - Crypto is easy game right now but it may not always remain so. If you invest $1000 make $500 and immediately cash it out, you will never make it to the big bux. The only way to get there is by having compound interest work in your favour. Cryptocurrencies scale extremely well as it is as difficult to make $500 from $1000 as it is to make $5000 from $10000. Keep it in mind and let your investments grow.
Daytrading - Selling and buying coins everyday creates too much noise and very few people can do it profitably. Most of the successful investors buy for longrun and only switch coins after they have made big profits or fundamentals of the coins changed drastically.
Not doing extensive research - Before you buy something, understand the technology behind it. Listen to successful youtubers, read website, whitepaper, try to think about what actual problem does this coin solve? If there is no real use for it or there will not be in a couple of years then think hard about why you want to buy it.
Discarding an investment just because you don't get it. - I could have invested in BTC in 2008-2009 but I didn't, I didn't know what it does and what kind of use it might have. I thought it was nothing worth considering. Don't be lazy like that. If a coin launches that offers something groundbreaking, you should take a moment to understand what it does and if it is useful now or could be in a couple of years. You might find next big thing this way.
Remember that when mobile phones came out, they sucked and no one thought that they need one. Same with PC's, laptops, facebook. It takes years to develop solid platform. Cryptocurrency is in its development stage right now, so get on board and most importantly learn to be patient about it.
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