What Are The Biggest Mistakes New Investors Make In Cryptocurrencies
Interest in bitcoins and cryptocurrencies resumes at the beginning of 2022. The media suddenly start to make predictions about new records “to the moon” and the resumption of growth.
Although the cryptocurrency market lost a lot of fans on the last correction, nevertheless, we hear “buy the dip” from every corner of our planet.
Each new positive wave from the media brings newcomers to the world of cryptocurrencies who hear that people become rich by investing in cryptocurrencies.
However, instead of blindly believing such headlines, it is better to study the mistakes of others and learn from them. When investing in cryptocurrencies, you also need to think about what exactly can ruin your portfolio.
You need to know and keep these things in mind, and by following the list, make sure your crypto investments are safe and you are on your way to success.
One of the main mistakes novice crypto investors make is emotional instability. FOMO is an obsessive fear of missing out on a good opportunity or exciting event.
This emotion may be associated with thoughts that someone is lucky, but you are not. For example, you see someone on social media talking about “raising some good money” with help of some coin.
This can evoke an appropriate emotional response in you and make you regret that you missed this opportunity.
Irresponsible investment. A well-known rule among crypto investors is that “you cannot invest more than you can afford to lose.” Everything is very simple. It is unacceptable to invest your rent money; college tuition fees; vacation funds; funds that you saved for housing, etc. Otherwise, you can “win” financial collapse. Ignore the greedy inner voice that tells you to “invest more.”
Setting clear goals and managing risk is not the easiest aspect of investing. However, a working investment plan can demonstrate to you that the difference between a modest income and a total loss of funds is simply huge.
Sale of the “bottom”. The flip side of “buying a top” is “selling a bottom.” In hindsight, we conclude that “the bottom was not worth selling.”
With such a sale, complex and confusing human emotions can work – rather, panic. However, the connection of emotions with economic markets is even more obscure.
If an investment loses 80% of its value within a few months, that is probably enough to make even the most avid investor nervous.
Wrong choice of investment channel. Many novice investors try to earn some money on cryptocurrencies by buying signals, or they try to invest in mining.
The first option promises high risks of draining all your capital, while the second, on the contrary, will be able to stably keep zero earnings – everything that you mine will most likely go to pay for electricity and equipment depreciation.
Cloud mining has become one of the leaders in attracting investments in 2021 – and for good reason: the user pays for the services of a remote data center, receiving all the benefits of mining and leaving all the rough work to the company’s employees.
Some companies like GreenHashes have made cloud mining completely green with renewable energy. GreenHashes crypto mining services are designed and inspired by various cryptocurrency enthusiasts and blockchain experts, as well as people who care about the environment, to provide an affordable and most efficient, and environmentally friendly mining service with frequent payments for both small and large investors.
The user just needs to register an account and buy one of the many mining contracts. Each contract differs in price and amount of leased capacity.
Different durations allow you to remain flexible with the high volatility of cryptocurrencies.