What would you say is your biggest mistake you do while investing? You might answer "getting in too late" or "not buying early enough". No, those are not your biggest mistakes, even if you make them. Your biggest mistake is following others blindly.
Ok, lets break it down. Why is following others blindly bad? Well, pay attention to the word blindly, this is where you go extremely wrong. You should never look at the market and go "hey, everyone is buying, I think I should buy also, so that I don't miss out on it!". At the point you notice everyone is buying, you probably shouldn't buy it any more. The chances are that you don't know enough about the currency you are considering investing in, because if you did, you probably would've invested already if you thought it was worth it. The best option is to just move on at this point, or wait for things to settle down. Of course, if you truly believe in the currency and are willing to take a hit, meaning holding onto it even if it crashes, then go ahead.
Your second biggest mistake is likely to be avoiding currencies that are going down, or are down at the moment. This exactly the opposite of what you should be doing. The only way to win big, is to do what others are not doing. If everyone else is doing something, how are you going to profit? Everyone cannot win always. But again, if you hold a currency you believe in, it might go up because the chances are that all good cryptocurrencies are still undervalued.
Your third biggest mistake is likely to be impatience. You expect that things will happen within a day, a week, maybe you think you are patient and you are willing to wait a month, but what happens after that? If you are like the others investing in cryptocurrencies the chances are you expect to see huge profits very quickly and if you don't you start doubting your choice. Combined with this mistake is usually a sense of panic that start to creep in once you notice that your investment is going down and you end up selling and making a loss. Well, again do you believe in the currency you are holding? If not, why on earth did you put your hard earned cash into it?
Fourth, you just want to be rich. What is wrong with this? I'm sure everyone who is investing in cryptocurrencies is hoping to become rich or at least make a lot of money and that is why they first became interested in investing into cryptocurrencies. Ok, some people in the community/communities might just be generally really interested in the technology and became investors accidentally. However, I will generalize here. Your greed becomes a problem. You forget why you should invest in cryptocurrencies or you never even thought about it. Why are cryptocurrencies such good investments? Yep, some of you are wondering about the answer to this question. To those, I warmly encourage to find out why cryptocurrencies are the future. But I will say this to get you started: The technology behind cryptocurrencies, the blockchains, are the reason why cryptocurrencies are so valuable today.
Five, you can't name one good reason why you invest in the currency, which differs from the other currencies. Yeah, sure many of you will think, "I know", well good. Now go back through the other biggest mistakes and think, why do you fall pray to these mistakes? For the rest of you, start studying! Take one coin, read what it is about, take another coin, compare! There you go, this is how you avoid falling for the most obvious, not having enough information!
Hope you got something out of this! Thanks for reading :)
Disclaimer: This post was originally posted 7 months ago, but despite my effort it went rather unnoticed, so I hope it will do better this time :)