Welcome to Bulliscoming Crypto And Finance Media, When it comes to investing in cryptocurrency, most newbies don’t know the right way of investing, it might be a very big deal when it comes to knowing the vital ways of avoiding mistakes in investing in cryptocurrency
Cryptocurrency is not a get-rich-quick scheme and people who sees it as a get-rich-quick scheme; turn crypto investment into gambling. They always want to get involved in any coin that gurus mentioned to the moon and make 3 – 10x
Due to Fomo, they might be losing a lot of money because of little to no knowledge about knowing the various ways to avoid FOMO and other important things in crypto investment
Without so much ado, I will be briefing the five(5) worst mistakes to avoid when investing in cryptocurrency.
Buy High, Sell Low
Most people mostly mistake this knowingly and unknowingly and this kind of strategy will always make them lose a lot of money in investing in cryptocurrency
How do they buy high and sell low?
This individual will buy when the market is green, they buy when the coin or token is pumping in regards to Fomo( fear of missing out) and when the market is coming down(dip), they began to Fud( fear, uncertainly and doubt) and sell when it -10% to – 30% below their entry point.
This happens to a lot of newbies and to avoid this mistake is by using the Dollar Cost Averaging(DCA), DCA is just simply buying an asset bit by bit anytime the price goes down below your entry or buying point.
“You budget $2,500 in crypto investment, instead of by a coin with the whole of the $2,500 at once, you now first buy with $1000, and when the price of the coin dip, you buy with another $1000, when it dips again you buy with $500 making your total purchase $2,500 at different buying price”.
Buying Because It’s Cheap
Buying a coin when it is cheap, yeah. Most newbies and crypto enthusiast who are not knowledgeable in the thing to look at when investing in cryptocurrency falls in this category.
They simply look for cheap coins/tokens to invest in without doing some research to look if the coin is worth investing in. This often leads newbies to invest in a pump and dump coins(shitcoins) and when the dev removed liquidity, they can’t sell back to valuable coins or fiat currency; the victim might say, crypto is a scam.
To avoid this mistake is by knowing the things to look at when investing in cryptocurrency, learning what is Market cap, Unit price, Supply, and demand will minimize their loses
Looking For 100x Gems
When it comes to finding gem tokens, newbies often see hype coins as gems. This is because; they don’t know the vital things to look at when choosing a gem token. Most newbies don’t even think of doing their research; they often depend on gurus to tell them to buy this, buy that, it is a gem coin
And on the other hand, they also see a coin that is cheap as a gem coin, the fact that a coin is thought very cheap doesn’t classify it as a gem token but this can be one of the things to find a gem token.
To avoid this mistake, newbies are to learn the various things that classify a gem coin, the pros, and cons of finding a gem token and the risk involves. This will help to minimize their loss when looking for gem coins.
Using Leverage As A Newbies
Cryptocurrency investing is not for the weak, it requires a mindset of learning, patience, standard capital, and consistency to start doing the right thing that will make a good investment in cryptocurrency
Most newbies don’t want to learn, they are impatient, they often want to use little capital to make a huge amount of money from cryptocurrency, a lot of newbies are familiar with jumping from spot to leverage trading.
Meanwhile, it is very bad in trading with borrowed money mostly when you are not knowledgeable about the volatile market of cryptocurrency and this is what newbies are doing.
To avoid this only implement the habit of consistent learning and implementation, look for a strategy that works, and practice to the level your profit ratio is higher than your loss ratio.
With all this, I think crypto enthusiast can now minimize their loss and stop making these mistakes to avoid stories that touches 🤝
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