How to Avoid Common Crypto Mistakes 🤦

Investing in Crypto can be a wild ride, and we get it - mistakes happen. But fear not, because we've got the inside scoop from Earle Loxton, the CEO of EasyCrypto, on how to avoid some of the most common blunders investors make.

Cryptocurrency is a relatively new investment opportunity that has caught the attention of many people. With the potential for high returns, it has been seen as an exciting prospect for those who are new to investing. However, it is important to realize that cryptocurrency is not a risk-free investment. There are mistakes that novice investors can make that can end up costing them dearly.
 
One of the most common mistakes made by new investors is panic selling. Cryptocurrency is known for its volatility, and it is not uncommon to see double-digit percentage moves in just minutes. When prices drop quickly, it can be tempting to sell in a rush, fearing further losses. However, it is important to ask yourself if anything has fundamentally changed in why you own cryptocurrency. Often, the answer is no, and selling in a panic can lead to missed opportunities for gains when prices inevitably recover.
 
Another mistake that new investors often make is falling for biased media. Major news sites may release negative news stories about cryptocurrencies, which can be exaggerated and intended to generate clicks, controversy, and fear, uncertainty, and doubt (FUD). It is important to do your own research and not be swayed by sensationalized news articles.
 
Ignoring fees is another mistake that new investors often make. When making many trades in an attempt to make a profit, fees can quickly add up and seriously affect your profits. Be aware of fees and factor them into your trading strategy.
 
FOMO, or fear of missing out, is a common pitfall for many cryptocurrency traders. Investors may feel compelled to buy in the hopes that this is the next big run, leading to irrational trading decisions. It is important to have a calm, structured, and logical investment decision behind your trades, rather than simply taking a swing for the fence.
 
Finally, new investors may not "HODL", or hold onto their investments for the long term. When the cryptocurrency market falls immediately after an investment is made, some investors may be quick to cut their losses out of fear and emotion. However, it is important to accept that the cryptocurrency market can rise and fall dramatically - and to have a longer time horizon with a patient and logical investment decision.
 
Investors in the cryptocurrency space should adopt a long-term perspective and exercise patience. In the current environment, it is crucial to invest in cryptocurrencies that have strong fundamentals. This requires careful consideration of factors such as the project's leadership, track record of meeting milestones, unique technical advantages, potential user base, and a clear vision for the future. Failing to adequately assess these factors can lead to unfavourable outcomes.
 
For those who are uncertain or lack expertise in this area, a wise approach is to purchase a cryptocurrency bundle such as EC10, which gives the investor a combination of the top 10 Cryptocurrencies by market cap. This enables investors to benefit from the market's assessment of which cryptocurrencies are likely to succeed.

Earle Loxton, CEO of EasyCrypto
@earleloxton

Updates as of 30 March 2023

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