The cryptocurrency world keeps blooming, and many people still keep joining the bandwagon, so if you’re reading this, I’m pretty sure you’re one of them too. Who wouldn’t be enticed when we know that many people have already been millionaires or billionaires because of investing in cryptocurrencies. But don’t just jump onto the wagon and think that it’s an easy ride to riches and wealth. Those people made mistakes before they became what they have become because of cryptocurrency investment. You have to learn from their mistakes and avoid them. Here are the top 5 mistakes cryptocurrency investors make and how to avoid them.
1. Not doing your own research
When a new crypto is launched in an ICO, people tend to get easily swayed, so they immediately dive in without doing their own research first, just like what happened in 2017 when everyone was so hyped that the total collected amount from ICOs that year reached over $1 billion. Unfortunately, most of these ICOs failed as it turned out that many of them were just selling ideas and not a finished product. In short, those were scams, therefore putting the investors’ hard-earned money directly down the drain. Avoid this by doing your own research. Find the whitepaper to ensure the authenticity of the project. In other words, do your due diligence.
2. Choosing the wrong exchange
This may sound like a simple mistake, but beware, this is one of the most common mistakes crypto investors usually make. Choosing the wrong exchange may mean lower profit margins as most of the largest crypto exchanges nowadays charge the highest fees. With high fees, you have to have a higher investment and wait to grow it further before you can expect a higher return on investment. More importantly, these exchanges are all centralized, meaning you will have to trust your money and personal information to a third-party entity. Avoid this mistake by finding a decentralized market where you have the upper hand, the freedom, and the security to move freely in the platform like what Virie Market is.
3. Putting all your life savings in your investment
Two rules of thumb to remember here: (1) Don’t put all your eggs in one basket and (2) Don’t invest more than you can afford to lose. I’m sure you’ve heard this many times already, but still, people keep doing the same mistake over and over again by putting everything they’ve got when they begin to invest in cryptos, hoping and praying that they will earn the profits a thousand folds overnight. Don’t do this if you don’t want to end up sleeping in the streets. Keep in mind that crypto investment is like a gamble and a very risky investment so, play your cards right.
4. Missed the security details
Security is one of the most crucial elements in cryptocurrency investment. Missing out on the security details of an exchange platform you’re investing in may mean giving away your money to hackers and cybercriminals. If you are into mining, consider investing in an exchange platform that has an automated mining system with embedded hybrid parity protocol of Proof of Work (PoW) and Proof of Stake (PoS), which makes it utterly impossible for anyone to malign the whole network. An attacker needs to have at least 50% of PoW and 50% of PoS to be able to get through it, ultimately keeping your cryptos secure. So far, the only one that has this feature is Virie Market. Just for this feature alone, it’s worth putting your hard-earned money into it.
5. Too afraid to make mistakes
Contrary as it may seem, but mistakes do happen in any investment, and that includes crypto investment. Many people lost the opportunity to invest in an ICO that later turned out to be successful because they were too afraid to make mistakes. This happened to bitcoin when it was launched. Nobody wanted to invest in it because of the fear of making mistakes and the fear of the unknown. People are scared of anything that would take them out of their comfort zone. Years later and until now, bitcoin has proven that it’s all worth investing in. This is why you should not be afraid to make mistakes when investing in new crypto, and this is also for this very reason that articles like this help you in avoiding those mistakes. Virie Market’s IEO and ICO are launching soon. It will be worth giving it a try and not be afraid. Download the application here, and see for yourself how it works.