There are more new investors in crypto than in any other market on the planet. The reality is that this comes as no surprise given the huge rise in prices which we have seen in the market. Experts like Robert Testagrossa welcome this of course, but they have been keen to warn of the dangers which can be found in crypto for new investors. The key to avoiding the mistakes which so many make is to know what they are, and here are the most common errors which we see.
There are many wallets online which you can choose from when it comes to holding your crypto. With this being said however there is only one truly secure way to keep your holdings and that is with a physical wallet. These small devices offer the greatest security that we have in the crypto sphere, and there is no reason why you shouldn’t use one to protect your interests.
Following Advice Only
There is still so much that we are yet to learn about crypto, yet many people online who do believe that they know it all. The way to avoid trusting those pieces of advice on their own is to ensure that you have always researched the information which they are sharing. If someone suggests an alt coin to buy, spend some time researching the project before you decide to jump in.
This is a market which is known all over the world for its incredible volatility. The result of this is that there can often be big price drops overnight. What you must ensure that you are aware of however is the dangers of panic selling. This is not to say you shouldn’t sell if the price goes down, there is nothing wrong with this. If the price begins to fall however and you sell everything you have each time this happens, then you will lose out in the long run.
Whenever you are buying or selling crypto assets you have got to make sure that you are doing so from the exchange, and not directly from the platform. The likes of Coinbase will sell directly but they will offer you a big drop in price for selling and an uplift when it comes to buying. There is just no value here for you at all and this is exactly why you should be looking to learn about how to use the exchange.
Having a Plan
The best way for you to sensibly manage your investments is to have a plan as to what you are looking to do. For some this may be enough money for a new car, others may wish to become millionaires. Whichever your plan is, get it down now so that you can allow that to then dictate what you are going to do as you buy and sell crypto.
Avoid these mistakes for increased chances of success in the crypto space.