The 6 mistakes of beginners investing in cryptocurrencies

The crypto market is welcoming a large number of investors day by day. Most of them particularly venture into this area to make the maximum possible gains. However, things don't go as planned and they end up with huge losses of capital.

This situation mainly concerns novices, who lose a lot of money and end up giving up. Discover in this post the different errors beginner to avoid when you start investing in cryptomonnaies.

Start investing without understanding cryptocurrencies

Invest in cryptocurrencies without understanding how they work is a serious beginner's mistake. It's not enough to learn that this field brings in enough money to get started. All the advantages offered by this sector are based on technical rules and principles. 

When a novice invests in an asset that they do not fully understand, they run the risk of losing their capital. That is why it is recommended to learn about cryptocurrencies and understand how they work. This allows beginners to know what strategies to adopt so as not to lose their investment capital.

Whether it is Bitcoin, ETH or any other crypto, each of them has its own characteristics and advantages. To have a perfect mastery of cryptocurrencies, the best option is to train and learn how to do it a fundamental analysis.

We cannot decently invest in cryptocurrencies when you don't know what bitcoin is, a cryptocurrency, a blockchain etc.

Before you invest, you have to learn. It's unavoidable. It's the same thing for any type of investment. If you want to invest in real estate, it is essential that you know the real estate market and the different aspects of this type of investment.

The wrong choice of starting capital

Choosing the wrong starting capital can be a cause of loss for many beginners in cryptocurrencies. Some people decide to invest all their money at once, believing that they can get a significant return on their investment. They do what is called an "all-in" in poker.

This gross error is often noticed among novices who are generally more greedy and more naive regarding the gains that can be made with cryptocurrencies. However, it must be recognized that the cryptocurrency market is very volatile. Even if you have significant capital to invest, it is always preferable to diversify your investments.

The best thing to do is toinvest in different assets cryptographic so that your capital does not evaporate. For example, if you have capital of 1000 euros, you can try to invest 300 euros in Bitcoin and 200 euros in Ether. Then the rest of the capital can be invested in another project or another cryptoasset.

The main problem for some beginners is that they immediately cling to a single cryptocurrency. They put all the funds into it that they could use for many other projects. Consequently, losses become inevitable. To be honest, crypto investing is different from games of coincidences. Therefore, no result is possible if we rely everything on luck.

To succeed, you have to be forward-thinking and thoughtful. Nowadays, many people end up give up because of this mistake and lack of experience. This is why it is important to follow the support of a cryptocurrency expert. He can offer you coaching and help you choose reasonable capital for your investment. 

Carry out operations without taking the time to think

Most beginners think that investing in cryptocurrencies allows you to easily earn a lot of money quickly. However, this should not be the case because it is necessary be patient to succeed. When you invest your capital, it must be worked in the market for a certain period of time. 

Additionally, it is also possible to make losses when investing online for the first time. THE trading conditions are not regulated and you cannot always know at what price the cryptos will be listed. 

The beginner must then take the time toanalyze market fluctuations in order to know how to behave when faced with rating problems. This is not done in one or two months, but rather requires quite a bit of time. Likewise, it takes some practice to understand market psychology.

In fact, the most glaring mistake beginners make has to do with losing patience. They can't wait until the price of cryptos increases before making sales. In this case, they risk losing a large part of their investment in a period of time. They are also more likely to panic sell if a sense of FUD spreads for example.

Invest in any cryptocurrency

Even if it is favorable to diversify your sources of income, it is not recommended to invest in any cryptocurrency. This beginner's mistake affects many people who end up having a bad perception of crypto. 

Apart from bitcoin, Ether and others popular cryptocurrencies, new projects are launched almost every day. Therefore, you need to be careful about how you invest and what you expect in return. It is also important not to follow just any person on the networks who talks to you about this or that project in a positive way. A beginner tends to drink the words of his web gurus and if the latter do shilling (hidden and insistent promotion), then he has a high chance of investing in a scam...Thus, a beginner will be able to buy memes corners, shitcoins without really knowing what it does.

According to CoinMarketCap reports, there are already more than 20 assets crypto. The market is then very dense and whatever project you are offered, you must inquire before you start. 

In addition, note that there are crazy or uncertain projects today. In the crypto field, they take the name ''shitcoins'' and offer transaction fees that are too low in order to attract as many inexperienced investors as possible. 

Beginners should avoid these types of projects so as not to waste their money. Whatever benefits are offered, you should seek to take reliable and convincing information before making a decision. Although online investing is presented as very profitable, it also presents several risks if you are not careful. 

Another mistake is not differentiating between different crypto investment tools. For example, a beginner will invest in a Bitcoin ETFs thinking of investing directly in bitcoin. A beginner does not yet know the difference between different types of assets.

Choosing an investment platform that goes beyond your beginner level

Today there are a large number of platforms specially designed for buying and selling cryptocurrencies. They are often available in the form of applications to make it easier for those who use mobile devices. 

However, faced with this variety of sites, beginners do not know which one to choose for their investments. They start with such as internal which are above their level of practice. In reality, each site for buying and selling virtual currency has its own mode of operation. In this case, choosing a platform that is too technical is a risk for a novice in the field. 

This is why new investors are advised not to use derivatives platforms like Poloniex, eToro or even Bittrex. These platforms are reserved for experienced traders, because they require advanced strategies. On the other hand, platforms like Binance et TrustWallet are rather recommended for beginners. They are quite simple and easy to use, although at first glance they can still impress the novice.

Not having investment strategies

Before you start investing in cryptocurrencies, it is crucial to have an investment plan. This is a detail that escapes many novices. The majority of beginners start invest without setting goals beforehand and without having strategies.

This is why they tend to invest all their capital in a single cryptocurrency and end up suffering big losses. THE crypto investment plan must mention the expected capital, the different cryptos to invest in and the objectives linked to each investment.

This allows you to have a good path to invest in advance and avoid taking unnecessary risks. It is also imperative to regularly monitor your investments in order to make adjustments.

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Note: This is not investment advice. Always do your own research (DYOR). Only invest amounts you are willing to lose. Trading is an activity that involves risks of loss of capital.

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