Did you know that Bitcoin officially launched on January 3rd, 2009? If you are new to the world of cryptocurrency it is important to get familiar with cryptocurrency investment mistakes to ensure that you know how to avoid these mistakes. We have put together this short guide to share the top mistakes when investing in cryptocurrencies and how you can avoid them.
Keep reading to learn all about these crypto mistakes.
1. Putting All Your Money in One Coin
This is a common rookie mistake that we don’t recommend doing. Instead of putting all of your money in one basket, it is a smart idea to diversify your portfolio and invest your money in a few different coins. If you invest all of your money in one coin then you are going to be at the mercy of that one coin vs having several coins where if one doesn’t do as well as the others it can balance out any losses you might have.
Do your research and make sure you do your due diligence to buy your crypto from a reliable exchange or ATM. We highly recommend checking out this site for more tips about making a Bitcoin purchase: bytefederal.com.
2. Not Doing Your Own Research
Another mistake that newbies do is not doing their own in-depth research. Instead of being influenced by family or videos on YouTube, take the time to look up the coin you are considering buying yourself. You might come across a lot of hidden gems just by doing your homework.
Doing your research will not only teach you more about the coins but will also boost your confidence.
3. Buying Because It Is Cheap
You do not want to buy coins just because they are extremely cheap without doing your research. Take a look at other factors for example “what is the purpose of the coin?” and what is the maximum supply of coins available?”
Understanding the Market Cap (coins available) is going to make a difference in how valuable the coin can become in the future.
4. Buying More Than You Can Afford to Lose
One major downfall for rookies is investing money that they need to pay their necessities such as rent or their mortgage payment. Investing money you can’t afford to lose can put you in a bind if the coin value drops dramatically after you buy it. Of course, you never know when coins will go up or down in value but, it is best to be safe by only investing spare money that you can afford to lose in a worst-case scenario.
Now You Can Avoid These Cryptocurrency Investment Mistakes
We hope that now that you have our list of the top cryptocurrency investment mistakes, you can make sure that you do not make one of these mistakes yourself. We also hope you are feeling more confident with buying and selling cryptocurrencies.
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