4 Common Crypto Investment Errors and How to Avoid Them
Are you ready to invest in crypto? With over 300 million people currently investing in this multi-billion dollar market, it’s time to make your money go to work for you.
Not every investment in cryptocurrencies will make you an instant millionaire, however. There are many mistakes investors make that negatively impact their portfolios.
Do you want to avoid some common crypto investment errors? We’ve got you covered in this guide!
1. Not Researching the Different Types of Crypto
Many people don’t research their investments before buying, whether it’s stock, real estate, or crypto. Investment in cryptocurrencies is even more diverse than stocks or properties.
Not every crypto works the same way. Unlike other monetary forms, crypto has no standard-issue or central authority. Every crypto is free to decide its issue and regulation.
For example, Bitcoin is very different from Ether, despite currently being the top two crypto investments. Coin cryptos are also very different from crypto tokens.
A guide to NFTs and altcoins will help you understand the different applications and issuance of each crypto type. You’ll be able to sort the crypto knowledge from the hype and speculation.
2. Buying High and Selling Low
This is another common investment mistake across all types of investing. Some investors have an intellectual understanding of investment risks and rewards, but their investment strategy is still based on emotion.
As an investment’s value shoots up, excited investors hop on the bandwagon hoping to grab some earnings while they’re hot. The psychology behind this mistake is referred to as FOMO, or Fear Of Missing Out.
But investments don’t climb forever. When the investment performance inevitably goes back down, disappointed people sell their stock low.
Investor guides caution against these FOMO-based decisions. It’s one of the worst emotion-based investment strategies to have and all but guarantees you’ll lose money.
3. Buying, Trading, and Selling Without a Strategy
Every investor starts out with the same basic goal: make a return on investment. But not every investor tries to meet this goal with an actual investment strategy.
A crypto investment strategy follows the same basic principles as other investments:
- Evaluate the risks
- Don’t invest money you can’t afford to lose
- Make short-term and long-term goals
- Have a well-balanced portfolio
Many common investment strategies include:
- Buy-and-hold investing
- Dollar-cost investing
- Active investing
- Momentum investing
- Value investing
- Growth investing
- Income investing
There are many investment guides from sites like NerdWallet, Investopedia, and SmartAsset to help you decide which strategy works best for you.
4. Neglecting Investment Security
Crypto is a virtual currency that’s more private and less regulated than other currency forms. This gives cybercriminals new opportunities.
Your money and crypto investment profits can be attacked through:
- Ransomware
- Hacked or fraudulent trading sites
- Cryptojacking
- Phishing for pins and passcodes
- Digital wallet theft
Like any other currency, it’s important to safeguard your investment in cryptocurrencies against theft and social engineering.
Avoiding Common Crypto Investment Errors For Higher Profits
Now that you know some common crypto investment errors to avoid, you can start your investment journey with confidence!
For more guides like this one, check out our tips and tricks section. Or read more articles in our hacks section!
The post 4 Common Crypto Investment Errors and How to Avoid Them first appeared on Weirdomatic. Weirdomatic is the place where all weird things come to life through the amazing world of photographs – a corner of our wild imagination or the whimsical face of the reality?
Source: https://weirdomatic.com/4-common-crypto-investment-errors-and-how-to-avoid-them.html
Anyone can join.
Anyone can contribute.
Anyone can become informed about their world.
"United We Stand" Click Here To Create Your Personal Citizen Journalist Account Today, Be Sure To Invite Your Friends.
Please Help Support BeforeitsNews by trying our Natural Health Products below!
Order by Phone at 888-809-8385 or online at https://mitocopper.com M - F 9am to 5pm EST
Order by Phone at 866-388-7003 or online at https://www.herbanomic.com M - F 9am to 5pm EST
Order by Phone at 866-388-7003 or online at https://www.herbanomics.com M - F 9am to 5pm EST
Humic & Fulvic Trace Minerals Complex - Nature's most important supplement! Vivid Dreams again!
HNEX HydroNano EXtracellular Water - Improve immune system health and reduce inflammation.
Ultimate Clinical Potency Curcumin - Natural pain relief, reduce inflammation and so much more.
MitoCopper - Bioavailable Copper destroys pathogens and gives you more energy. (See Blood Video)
Oxy Powder - Natural Colon Cleanser! Cleans out toxic buildup with oxygen!
Nascent Iodine - Promotes detoxification, mental focus and thyroid health.
Smart Meter Cover - Reduces Smart Meter radiation by 96%! (See Video).