Investing in Cryptocurrency can be a good choice in many ways. It is a lucrative deal as it gives some good return on investment. However, when it comes to investing in digital currencies, many newbies tend to make a few mistakes that go too expensive for them. In this post, we will be exploring a few common mistakes that novices tend to commit and end up losing their money. Also, you have the choice of exploring the portals like this trading App, which can give you a fair share in this regard. How about checking them as under:
1.Avoid investing like a Degen
One of the common mistakes one makes in the digital currency space is putting money like a Degen rather than carrying out your research. Do keep in mind that you are all alone responsible for all the investment decisions, and no one can do for you. So when you invest on your own, you have no one to blame for your losses. You make any decision to invest only when you understand the products so nicely. This is the key reason why you need to do your research, as it helps a lot. This is the basic reason why more and more people are failing in crypto investment, particularly the novices, as they are doing things without going for any kind of research.
2.Shun the Fear And Greed
Love it or hate; the fact is any financial market is driven by two key emotions that tend to remain powerful – fear and greed. When you see people greedy, it is mostly when the prices are seen going up, while with fear, you see the prices falling. If you intend to follow such emotions, you only buy when the prices snowball and sell away when you see prices falling. In other words, you buy when things are on top and sell when they are on the decline. In the crypto domain, the abbreviation FOMO is important. It means Fear of Missing Out. The fact of the matter is, it helps you to make decisions as per logic and reasoning and now via any emotion.
3.Keeping Things on an Exchange
When you plan to invest in crypto, you need to promise that you do not keep all the funds in a single exchange. This is one of the common mistakes people make in the digital currency space, which one can easily avoid. Your exchange or account can get hacked while happening from one juncture to another. This may happen that all the exchanges can hold all your funds due to some shady reasons and even need you with some additional effort coming in the form of KYC to prove about your funds along with some legit sources. You can avoid this problem by keeping all your funds intact in your wallet rather than keeping them in one exchange. Rather consider native exchange tokens, including KCS or KuCoin, to name a few.
4.Losing Access to your Funds
Frankly speaking, if you tend to lose access to your funds, this can prove to be a costly mistake for you. This may be simple, though, but it can happen when you start losing access to your funds. This may happen to anyone, particularly when you face some fatal loss and that becomes too difficult to recover from the same. Hence do keep in mind to keep your passwords and key in safe mode. This applies both to your wallets and the exchanges as well. When you keep things safe, you tend to keep them physically everything in your diary or a piece of paper you keep in mind. This would apply to trying 2FA codes when it comes to trying your exchange accounts.
5.Beware of Getting Scammed
Lastly, scams tend to remain a big issue the novices could face. This is one of the key mistakes people tend to make when you put your hard money there and end up losing it. Some of the scams are pretty inevitable as they tend to appear too subtle and convincing; scammers are evolving with their methods all the time. It is a complex topic, but you need to explore it more to get an edge on this; in this way, you end up avoiding this.