Buying and selling crypto can seem pretty intimidating to newcomers.
For starters, it seems like cryptocurrency is never out of the news for very long, and the sheer strength of the opinions of the people talking about it (some of whom may not really know what they’re talking about but have a very strong opinion anyway) is enough to put anyone off. And then there’s the jargon, with a whole host of new words and different acronyms to get to grips with. But crypto traders know that it is well worth jumping through those early hoops to take advantage of the rewards.
However, it is still worth noting that if you want to have any success making money buying or selling crypto, you can’t just jump in with both feet and hope for the best. Crypto, like any other market, can be unforgiving if you don’t know what you’re doing. You’re going to need to be careful and think carefully about your next steps.
Not Doing Their Homework
Most people who trade crypto will have a story about someone coming up to them at work or at a party and asking “How did you get into that? I’d be interested myself!” They’ll have seen a news story about a specific coin, and they’ll have heard that they can make a lot of money. What these people don’t tend to want to do is actually put in the time and the effort, which will result in success. If you don’t understand what you’re buying or selling, how are you supposed to get the result that you want? So, if you’ve never done this before, set some time aside. You’ll want to be confident that you understand the jargon and that you understand what the company behind the coin that you’re investing in is actually doing. If you don’t have a firm handle on those basics, you are setting yourself up for tougher times later.
Not Looking At The Bigger Market
Every market is prone to fluctuations, that’s just a basic fact. And it’s true that some are a lot less predictable than others. It’s one thing to be caught unawares by an event that no one saw coming. It’s quite another to be surprised by something that every other investor had known about for weeks if not months. Having a simple understanding of the economic calendar might not tell you what coin to buy, but it can tell you when events that may determine the performance of the market will be happening. Say you want to look at the economic calendar this week. You might find that there is a speech that could impact the confidence of something specific. You can find out more about economic calendars and much more at TradingView.
Investing In The Wrong Coins
This sounds like a rather obvious point, doesn’t it? And one that could be quite tough to follow. After all, if it was as easy as that to only invest in the right coins, wouldn’t everyone be doing it? But there are a lot of people out there who will try very hard to convince you that they have stumbled across a great new coin. Or they’ve heard about a coin that has been overlooked which is surely on the brink of gaining a huge amount of value. Of course, once you’ve paid for it and realised your mistake, those people are nowhere to be seen. You can’t always avoid a bad investment, but it’s always worth doing your research before you commit to anything. It’s also the case that some people will try and convince you that a ridiculously elaborate trading strategy is the best way to go, but it doesn’t need to be so complicated. It’s a bit of a cliché to say that you should listen to your head and your gut, but if something does not seem quite right, there is probably a very good reason.
Not Taking Security Seriously
The hysteria around cryptocurrency and security has been one of the oldest topics of discussion when it comes to this area. A lot of the anxiety comes from a misunderstanding of what crypto was and how it works, with people convinced that blockchain technology was only being used by sinister criminals working in basements on the dark web. However, the fact is that cybercrime continues to be a major issue. What’s more, crypto is always going to be a very desirable asset. That means that you must take care when it comes to your information. Use two-factor authentication on all of your accounts. While you’re at it, remember to use a random password generator instead of relying on the same one every time. Think about investing in hot and cold coin wallets to keep them safe. And above all, think twice before clicking anything that does not seem quite right.