So many of you have been writing into us with questions around your potential crypto investments. The bets thing that we can say about this to you guys is that we are not able to give any financial advice in this field, all actions are your own. With this being said however we can identify many mistakes which a lot of first time investors have made, to help you avoid scoring any own goals when you first begin investing. Experts like Robert Testagrossa have been vocal about the risks of late, and these are some of the common errors which you should seek to avoid.
Buying Directly From The Platform
There are a number of platforms online which you can find to buy your crypto from, and they will also host exchanges where you can buy and sell from the market. The latter option here is always the best, because of the prices which you will get. Buying BTC instantly for example may be available for $58,000 whereas on the exchange you could probably get in at $56,000. The same thing happens when you look to sell, they’ll offer you a much lower price.
Failure to Increase Security
When you first set up your crypto wallet it is absolutely essential that you use all of the security features which they offer. This will include limits, rules once action has been taken and multi-factor authentication for when you sign in. There is no protection offered to you if you are hacked or if someone accesses your account, which is why you should ensure that you have increased our security.
Swayed By Twitter
Twitter can be a great place for you to find out about new investment opportunities but it is always essential that you have done your own research too. You cannot just trust the words of some Twitter account when it comes to investing your hard earned money —and you’d be surprised at how many people do.
Not Having a Ceiling
Prior to investing you should set yourself a ceiling price, which will be the value of your portfolio when you pull your investment out. You should also ensure that you have a floor price, in case you do lose money, so that you can get out without having lost too much. This is important as it will influence the decisions which you make for your investments, as the price rises and falls.
And finally you have to ensure that you don’t panic when it comes to your crypto and what the prices are doing. This is an incredibly volatile market and you will see some serious pumps and probably some brutal dumps too. Having your plan in place will ensure that you are making the best decisions to avoid any kind of panic buying or selling.
Take your time, diversify your investments, be patient and avoid making the same mistakes which so many have made before you.