Given the recent boom in the crypto market there are so many people who are looking to get involved, and they will do well to do so. Unfortunately however there are a lot of mistakes which people are making which are costing them money and costing them profits. Experts like Robert Testagrossa have been outspoken about the dangers which low level investors face, and with this in mind we are going to talk a little today about some of the most common mistakes which are made in this sphere.
If you like the look of a crypto investment, here are some mistakes to avoid.
There are two ways in which you can invest in cryptocurrency, the first is to buy on the exchange, which is buying from people who are selling P2P, and the second is buying directly from the crypto wallet.The risk of buying direct is that they will sell to you at a far higher price than you can get on the exchange. For example if you buy directly from Coinbase right now, you will pay around $4,350 for 1 ETH. On the exchange however, you can get 1 ETH for $4,050. There is no point paying above the odds. The exchange looks complicated but is in fact easy to use.
Selling Down, Buying Up
If you do plan to do a little bit of trading with your crypto then the golden rule is to sell on the way up and buy on the way down. The issue which most people have however is that they see the price rise, get FOMO and purchase. When they see the price drop, they panic and sell up. This is trading strategy which will see you lose much more than you win. This is especially true in crypto because of the volatility of the market.
Assuming All NFTS are Money Makers
Non-fungible tokens are a very exciting area of crypto and if you are buying pieces for yourself then it is a nice way to get your hands on some really cool stuff. What many people are making the mistake of doing however, is assuming that every NFT they buy is going to be worth millions, it probably won’t be. There are some success stories of course, but these are not an indicator that you are going to get rich off the back of NFTs.
Assuming It Is Too Late
And finally you shouldn’t avoid a crypto investment because you think that it is too late. I’ll give you a personal example of why this is wrong. I wanted to buy some BTC when it was at $7,200, but I saw it just days before at $6,500. I decided that I’d wait until it dropped to maybe $6,750 before jumping in. Eventually I did get in, but not at the low cost I wanted. Bitcoin is now worth $57,000, which makes the $450 drop I was waiting for seem pretty stupid in hindsight.
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