In 2017, we are in the phase of going mainstream with cryptocurrency and the blockchain. Many heard of the rising of Bitcoin at 4,000$ and want to invest before missing the boat.
Also many are looking for the next coin that has the potential to hit big. In the crypto world, we see numerous coins increase at the rate of x100 in value. It is more exciting than a common share of the stock market, but you need to know and understand in what you are investing.
These are some mistakes you need to avoid if you want to be successful with cryptocurrencies and crypto assets investment.
1- Not storing your crypto offline
Lately, I read a story that someone got robbed of 5 BTC because he stored his seed on Evernote. Moreover, he used the same password on multitudes sites, this is a tremendous mistake.
You need to know that security is very important when you are managing your cryptocurrencies. The first step is to always be precautious and take the time to learn how to store you crypto assets offline.
And never forget if you do not own your private key, you are not the owner of your coins.
2- Do not follow any pump and dump groups
I got trapped myself when the bloodbath happened in the beginning of the summer of 2017. I was holding my coins, but it was depressing to see my portfolio value decrease every day. When your energy level is not at the top, you can make mistakes. I bought coins that were pumped and in the end, I lost some money. At least I kept the tokens as a learning lesson and I will never sell them.
My advice is to never follow any pump and dump group for a quick buck. Also, the best alternative is to simply invest in great coins like Ethereum and Bitcoin. Keep them for many years and let the organic growth do the job.
3- Invest without understanding the coin
The real truth, countless people will buy because the coin is hot and has a huge potential. However, the investor does not understand what gives values to the coin or the community behind it.
This is a huge mistake you should avoid. You need to take the time to research, read and understand the token before putting your hard earned money in it.
4- Invest in an ICO without researching
Everyone wants to make a quick buck and raise money without having a product. They create the hype and receive millions in return. You need to be careful because many of those ICO will turn out to be a scam and create a shit coin without any value.
Take your time to read the white paper and check the background of the team. Several have great potential to raise good money in the future. Others not so much.
5- Sell on the panic button
I saw many folks regret having sold their positions on forums and socials networks. When the market is going down, the volatility is crazy with crypto.
The best strategy is to hold and not panic. If you let the market control your emotions you will make mistakes and lose money.
6- Ask advice to a complete stranger
Buy from reliable sources, please do not follow blindly advice of a complete stranger. Sometimes those strangers do recommendations for their own agenda.
It is better to research from many channels, then take your own decision.
In the crypto space, we all make mistakes. The most important is to learn from them, and not make the same one over and over!
Moreover, you can read stories from other people who made those mistakes and avoid getting in the same pitfall yourself.
Have you made mistakes in the crypto space?