When you are a beginner in the industry and want to invest in cryptocurrencies, you often make mistakes and lose your money. Many new investors come because they have heard about crypto from the media, the Internet, or friends.
It is therefore essential to enforce rules to discipline yourself and avoid maximum losses. Here’s a tip to help you see things more clearly.
1. Investing in cryptocurrency without understanding
Everything has one technical side, especially the trading of cryptocurrencies and cryptocurrencies. Investing your money in an asset that you do not understand is the perfect recipe to lose capital.
Before investing, you need to study and understand what is the purpose of the project you are targeting or what is the utility of the token. In general, the fact of self-education is above all stock Investing will make you The best investor.
You should always keep that in mind Your money is the goal of the worldit is up to you to create a strategy to study crypto projects and to understand the technical aspects of blockchain.
2. Ignore transaction fees
in cryptocurrency trading and in particular in a challengeAnd the Every transaction incurs a fee, called “gas surcharges,” which can be translated into fuel costs. When the user performs a purchase, sale, or otherwise stockpay transaction fees.
This fee always vary Depending on the number of transactions per second and blockchain. For clarity, perform an operation on the network Ethereum It ranges from $1 to $10 per ounce ETH or more, depending on the network overload.
When carrying out many transactions, especially on the network Ethereum Where the fees are quite high compared to other blockchains, we realize that an astronomical amount goes into these fees, by adding them up.
So you should always be vigilant about this in the long run to save your money.
3. Invest in cryptocurrency: Think short term
Many new investors think they are going to get rich In less than a year thanks to cryptocurrency trading. This is a common mistake that many make when looking at the attitudes of some of those who have been successful with cryptocurrency.
Don’t be blindBecause he who says get rich quickly also says get poor quickly.
4. Thinking that cryptocurrency trading is “free” money
volatility of this new market it’s so loud, It is an indisputable fact. But every climb has it diminishing equivalent, The truth is that nothing is easy.
It is more difficult to keep your cool than in the traditional market. Considering that cryptocurrency is money that fell from the sky, we’re running straight to the wall.
You always have to be Satisfied earnings and stick to it investment strategy.
5. “All-in” your cryptocurrency trading capital, investing all of your money at once
In cryptocurrency trading, it is mandatory Don’t invest all your money at once separated by percentages.
In order to succeed in being profitable, without playing the lottery, you must have a file ” Money management »a spreadsheet to allow yourself to lose this or that percentage of your portfolio, because any money invested should be considered already lost.
So it is highly recommended not to use it that a certain percentage of its capitalgenerated in advance, and keep the funds uncovered.
6. Invest in cryptocurrencies because the price is low
After a cryptocurrency has done a lot from a low, it could be buying it just because it came back to a low very tempting, Imagine seeing her once again rise to her heights and become rich.
It may indeed be interesting to position oneself in this way, but the decision must be so arguments. buy some ETH Since it is low, there is no point in investing in an unknown cryptocurrency even if it has made high multipliers before.
7. Having a very complex strategy
New cryptocurrency investors directly use complex trading strategies because a YouTuber or social media influencer told them to, without even understanding the basic principles of trading.
As in all cases, this will They lose their money and go give up Strategic vision for investment sum.
It takes time to learnTechnical Analysis The work of the cryptocurrency markets. The best business school is Experiment with yourself.
Indeed, investing in cryptocurrencies can be simple, it is possible to invest without always being in front of the charts of crypto assets by doing active trading.
8. Invest in Cryptocurrency: Watch the levers
principlePositive effect Very dangerous, especially in the cryptocurrency market. Since the volatility of these assets extremely high, use Positive effect Dangerous if misused. It is a tool that must be used with extreme caution.
It works both ways: it can do just as much lose a lot win a lot.
To be on the side of investors, you must leave nothing to chance and neglect nothing. With that in mind, you will be well on your way to success!
You are interested in Digital currencies and trading? You can learn how to make multiples from a file Digital currenciesAll within the rules of risk. The exercise Crypto Rider offers you to create a strategy that will allow you to make profits: