By STEX.com on The Capital
Anyone can make huge profits from investing in cryptocurrency. However, only the most skilled and disciplined investors benefit from crypto investments, as dreamers and noobs end up counting losses.
Not learning the crypto basics, not diversifying, and not panicking are the common beginner mistakes to avoid. Let us have a closer look at these common pitfalls to avoid being caught on the wrong side.
Don’t personify the market
The crypto market lacks human characteristics, and yet the major mistake many crypto enthusiasts make is speaking about it as if it has a spokesperson. The effect is that people end up with a fundamental misinterpretation of how the market runs.
Personalizing the market might be useful in short-term projections, but it is disastrous that most investors use that shorthand as the basis of their investment strategy.
The concept of diversification has been in existence since time immemorial: you are more likely to lose it all if you bet it all. And that applies to crypto trading as it is anywhere else.
It is wise to diversify your investments even when you feel you have found a sure bet. It is healthy to have a wide variety, as you may win some, lose some, and sometimes both may happen concurrently.
Learn the crypto basics
Crypto trading requires that you be all-rounded, knowledgeable, and up to date with the latest news rather than depending on luck. Unfortunately, many crypto investors have little knowledge of the technology they are investing in.
If you want to be successful in crypto trading, then you must have a good understanding of the crypto market to help you make wise investment decisions.
Avoid peer pressure!
Not marching to the beat of your drum is the other worse beginner mistake most crypto investors make. By the time an adequate number of people know about something for you to feel pressured to partake, it is already too late- the tipping point has already been attained. Avoid it at all costs!
You ought to have an iron stomach to thrive in the volatile crypto space. Sometimes it is sensible to cut your losses, but they are not lost till you sell them. If you can hold your investment, you might experience gains again. Avoid buying high and selling low because of panic.
Exit through the gift shop
So, you have made some profits from your investment. You do not want to sell it all at once so that you end up missing the biggest boom. In such a scenario, you can practice staggered selling to make some profits while potentially making even more!
Are you interested in investing in cryptocurrencies? STEX is a reliable and secure crypto exchange where you can buy and trade digital currencies. Try us today for exceptional crypto services.
Crypto Investing 101: Cryptocurrency Pitfalls to Avoid was originally published in The Capital on Medium, where people are continuing the conversation by highlighting and responding to this story.