The one saying is, “If you are not making mistakes, that means you are not learning something new.” So making mistakes is good because you will learn something from mistakes, but as an investor, it is precarious to make mistakes initially. So, in this case, it is better to learn from other people’s mistakes by reading books and articles. This article will discuss the fundamental errors you should avoid if you want to be a successful crypto investor. So without wasting your time, let’s take a look at these mistakes.
Following mistakes, you should avoid
Not Doing Research
The first mistake every beginner investor makes is not doing Research, which is the biggest reason for wrong investment or losing money in investment. Doing Research is a time-consuming and tedious process, and people want a high return on their investment, but they don’t want to invest their time and energy. To avoid this basic mistake and do proper Research if you’re getting higher returns on your investment. There is also a need for basic knowledge of technology and researching terms, and if you know, then you can do well-research, and if you do not know, then you can learn by yourself by reading and taking courses and can be a like this platform
Don’t know the technology
Do you know where you want to invest? Do you work behind the technology in which you want to invest? It is also the fundamental mistake that you must know where you are going to invest. For example, if you’re going to invest in the XYZ company and don’t know their goals, what products are they producing? Are they making problem-solving products? or what is the revenue model of the company? Then there are high chances you will lose your money if you don’t know the answers to these questions.
Trading
Trading is one of the riskiest forms of short-term investment. We see many ads about cryptocurrency trading daily, and many people are earning high returns on intraday trading. But the mistake is beginners start following other people who are experts at trading. They have dreams like if I make the trade with bitcoin, I will be financially free in the short term, but it is challenging. So they start trading, and many people lose their money in trading, and after losing, they will say trading is not for us. It is better first to understand correctly what trading is and how to trade with minimum risk, and there are many books on bitcoin trading. So do not start selling with a high amount. First gain knowledge, and after that start practice with a short amount of money.
Many people think that bitcoin is like shares. But bitcoin is just a mode of payment as a digital currency. In percentages, you are the company’s owner according to your shareholding, and the company will give you returns and dividends annually, but it is not in the case of bitcoin. Bitcoin is just a digital currency and popular mode of payment, and it is not a company, or no management or controller will give you profit or dividend for holding bitcoin for the long term. We know that the value of bitcoin will increase over time, which means that if you purchase bitcoin at some amount and hold it for years after years, the value of bitcoin will increase. The increase in value is your profit, but there is no guarantee you will get it after a year, two, or how many years. So do not consider bitcoin as a share.
Relying on exchanges
Some people have long-term plans that mean people want to hold bitcoin for the long term and wait to increase the value. It is a long-term investment, but the mistake of many people is that they have their bitcoins or other crypto coins on exchanges. It is good to purchase bitcoin from an exchange but keeping it for five years is the riskiest investment. Exchanges are centralized systems that mean an individual or group of individuals controls exchanges, and if the exchange gets hacked, you will lose your money. Instead of using an exchange wallet, store your bitcoin on offline wallets like a hardware wallet or paper wallet that are the fully secured form of storing bitcoins.
Hi there! I’m Sethu, your go-to guy for all things tech, travel, internet, movies, and business tips. I love sharing insights and stories that make life more interesting. Let’s explore the world together, one article at a time!
