⚠️3 Crypto investment mistake you must avoid

  • Most investors often complain that it is hard to make money in crypto market, blaming the crypto market for their losses. On the other hand, we also hear stories of savvy investors making spectacular profits from investment opportunities that are often missed by others. So what’s going on here?

    After investing in crypto market for more than 5 years, I came to realise that most crypto investors often make the following mistakes that often cause them to get “rekt” and loose their money.

    1. Investing based on emotions, without a logical pre-defined buy and sell rules

    Most people often invest based on emotions. They usually buy a coin because they feel that the coin price would go up, without any idea on how much the coin they are buying is worth. Trouble is, our emotions tend to get the better of us most of the time and this often lead to poor investment decisions.

    1. Stubbornly Holding On To Losing Coins

    Without a logical set of pre-defined sell rules, investors often find themselves holding on to losing coins for a long time. They usually “justify” their decisions by thinking that the price of the coin will rise eventually.
    The problem with this approach is that by holding on to losing coins for too long, the risk that the investor is assuming often rises to dangerously high levels. To make matters worse, when he finally decides to sell the coin, he will usually incur a loss that is much larger than intended.

    1. Investing based on a prediction of the crypto market direction

    At any one time, there would usually be one group of analysts predicting that the crypto market would go up and another predicting that the crypto market would crash. So who’s right?
    The truth is, no one can consistently predict the direction of the crypto market. And contrary to popular belief, you do not need to predict the direction of the market in order to invest successfully! Rather, it is more important to able to spot whether the market is on and uptrend or downtrend and invest based on the current market trend.

    So what does this all mean?

    If you are planning to increase your wealth by investing in the crypto market, it is crucial that you avoid these investment mistakes at all costs. And that’s just the start! The next logical step before you start investing is to do deep research of the coins you intend to invest and make sure that coin is currently not overvalued. If you decide that coin has potential to grow in value next step is to pre-determine set of buy and sell rules. With these rules, you would likely to be less emotional when it comes to making investment decisions. In the long run, you stand a higher chance of achieving consistent profitability. So there you have it. All the best to your investment success!

    Ps: copy from Internet

  • Seeing that speculating the coin value is not a good method to invest in cryptocurrency, what kind of research is needed?

  • I have often come across such articles as this, and I always feel that the information provided is insufficient and much too generalised.
    Sure, do more research, invest with logic, etc. That those are just advice, just the tip of the iceberg.
    If more people search for information on any platform, it would need to be much more comprehensive.

  • Investing is not easy. These are risky, illiquid, long-term investments, so you need to do a lot of work upfront to increase your odds of success.

  • Many people jump to investments when they do not have even the basics. It is a very scary world out there as anything can happen.

  • @elixir This is very true. That's why beginners need all the help they can get when they're just starting out. Of course, it is impossible to spoon-feed everything because there is just so much information out there, and there is always gain and loss, so they will have to try it out themselves for experience. But the difference between a beginner with zero knowledge and one with at the very least some basics can be very scary.

  • @hola55 Yes. But not everyone has an outlet or source. Sometimes they just don't have anyone to guide them or they don't really understand the articles online. So it's trial and error for them as the learning process.

  • @elixir Indeed. There is no foolproof method to investing. It is all about understanding and constantly deepening our knowledge. And sometimes it just isn't enough.

  • @hola55 And that's why learning is a never-ending process. Sometimes it's so difficult to keep up with all the new information that pops up everywhere.

  • There are really very different investors out there where there are those who hold on to their losing coins and those who sell them off the moment the market drops.

  • It's scary to invest. There is always risk, big or small.

  • @supermario I think the research is too wide a scope to cover. Perhaps people can start by learning how to understand the trading charts and the investment community works as a basis. Then, once they know how it works, they will know what they will need to research about. Learning itself is already a step in researching.

  • @elixir I know right. It takes a lot to be prudent in investing. But sometimes it really is difficult.

  • @bell There is always a learning curve. Sometimes people don't know where to start.

  • @hola55 Knowing where and when to take the first step is essential. Some will bring you to your goal faster, some slower. But there is no shortcut.

  • @supermario there is always the internet. A simple question on google can help to kickstart the research.

  • @elixir if only there is a way for everyone to live comfortably though.

  • @bell true. Sometimes you just need to know how to use a search engine.

  • @hola55 Quite impossible. If everyone had the same way of living, things will go awry. Plus, no one will be 100% satisfied.

  • @supermario Sometimes still find it hard to believe that there is such a big difference between this and the previous generation that many from the latter do not understand how a search engine works. Did you see the video of the google CEO getting questioned by the congress?






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