What are Some Crypto Investment Mistakes You Should Avoid?
Don't Only Trust Peer Reviews
People often rely on peer reviews for information about an ICO or crypto investment, but these should not be trusted blindly. Scammers have found ways to manipulate the system by posting positive comments on their coins, hiring people to write fake reviews, and trading positive reviews for cash or another crypto.
Be aware of these scams, and don't let them sway your investment decisions. Another thing to note is that many people hate the idea of losing money. So when someone invests in something, they are likely to be biased toward that investment. Some investors might also be biased toward certain coins because they seem to be trending or popular.
Avoid Exchange Scams
Exchanges are websites where you can buy, sell, and store cryptocurrencies and use them for trading between various currencies. When choosing an exchange to trade on, there are a few things to watch out for. For instance, you'll want to make sure the exchange is reputable.
Some exchanges will deposit your money into a wallet and not send it to the exchange. They hope that you will not notice that your funds did not get deposited. When you try to withdraw your money, you will find out that it is not there.
The exchange will then tell you that you have to wait. Do not use these exchanges; if you have funds stuck in an exchange, you should withdraw them as soon as possible. Another scam that you might fall for is the "change your password" scam. Some phishing emails will tell you to change your password for security reasons and send you to a fake website. The phony website will ask for your login information and steal your funds. Avoid these scams by not clicking on links from emails and logging into your account manually.
You'll also want to make sure that you don't fall for any of the following exchange scams:
Bogus App Scams: Some scammers create fake apps that let you trade currencies from your phone. You provide them with your login information, and they steal your funds.
Fake Promotions: Some scammers will create fake ads offering free crypto or big sign-up bonuses. They'll then ask for your login information. Confusing Exchange Process Some shady exchanges will lure you in with low fees, no deposit requirements, and a confusing exchange process that makes it hard to withdraw your funds.
Do not go all-in on one crypto.
It is easy to pick a cryptocurrency and fall in love with it. You may think that this is the next big thing, but it is not guaranteed. If you put all of your money into one cryptocurrency and it falls, you will lose all of your money. Diversify your funds so that you keep all of your money if one fails.
You will also want to consider the market and its overall performance. The need usually goes up and down. You wish to have only some of your money in the market when it is at its highest point because you will lose money. However, you also want to have only some of your money there when it is at its lowest because you will lose money there too.
Do not use soft wallets for long-term investments.
A lot of newcomers use soft wallets to store their funds because they are easy to use. However, they are not secure and should not be used for long-term investments. Although there are some exceptions, most exchanges will keep your funds in a wallet that is not secure. These are easily hacked and are not suitable for long-term investments because you are at risk of losing your funds.
If you want to store your funds for a long time, you should use a hardware or paper wallet. You can also transfer your funds to a paper wallet , a piece of paper that holds the information needed to access your funds. Although this may sound old-fashioned, it is very safe. You can also use a hardware wallet which you can connect to your computer and access your funds.
ICOs Are High Risk, High Reward
ICO stands for Initial Coin Offering and is a way for companies to raise money. People can invest in these companies by buying their tokens and hoping that their value increases. There are a lot of scams in this area as it is unregulated and new. You can protect yourself from these scams by doing your own thorough research on the company.
It would help if you also looked at the whitepaper and their website. You should know that ICOs are high-risk investments and that there is no guarantee of success, and you should only invest what you can afford to lose. Always do your own thorough research before investing in an ICO.
Always do your own thorough research before investing in an ICO. As with everything in life, nothing is guaranteed. The same goes for ICOs. Don't fall into the trap of thinking that they will all be just because one ICO was successful. Make sure you do your own research on every ICO.
Conclusion
Investing is about balance, you cannot be less confident or over confident, you cannot be emotional or disregard emotions while trading. Making crypto market is an intresting and exciting roller coaster, no matter what you do you will have to loose some money to make alot of money. The market is not very friendly to the new comers but the above mistakes are some of the most common ones that the new comers commit that could be avoided. Best of luck for your crypto investments , happy trading.
