1️⃣ Not Having a Plan 1️⃣
A strategy is important because it will help to inform your investing decisions in a relatively consistent and pre-programmed way. It limits you from making quick and sometimes emotional decisions when trading particular coins. Most often, it is deviations from well thought out strategies that see newbies get rekt.
2️⃣ Using the Wrong Exchange 2️⃣
You need to make sure that the exchange that you are using works for your trading preferences. It needs to be safe and has to have the coins that you want to trade on it. You have to DYOR to make sure that the exchange does not have restrictive policies when it comes to withdrawals. You also have to make sure that the fees are not too high. Trading fees can build up over time and considerably limit your upside potential.
3️⃣ Not DYOR 3️⃣
The smart act of DYOR is the most underrated investment edge that you can get over all the other people who are jumping in the markets. Not only does it allow you to take full ownership over your investment decisions but it also means that you can research some of those hidden gems that other investors have not even heard of.
4️⃣ Taking Too Much Risk 4️⃣
This leads you to make decisions which are suboptimal and go against the strategy that you defined initially. When you are taking too much risk in the crypto markets, you tend to make emotional decisions because of the high stakes that are involved. Try to avoid high leverage if you are newbie.
5️⃣ Not Securely Storing 5️⃣
If you are holding crypto for the long term then you need to store it off exchanges. You will probably want to invest in a hardware wallet. It’s a small insurance policy.
6️⃣ Not Keeping Backups 6️⃣
Be sure to make regular backups of not only all your seed words. You will also want to make sure that you have backups of exchange passwords and two factor authentication seeds. You should consider keeping these in a safe location like a safe deposit box.
7️⃣ Sending Funds to wrong Address 7️⃣
Too many newbies send funds to the wrong address. You always need to make sure that you are sending that crypto to the correctly supported chain. You will want to make a test transaction with a smaller amount to make sure that it is being picked up on the other end.
8️⃣ Not Considering Tax 8️⃣
You should always invest with consideration to the tax implications. The taxman has become quite efficient when it comes to tracking those transactions. You may also want to consider when you are taking your profit as this will impact on your profit in the various tax years.
9️⃣ Telling People 9️⃣
Don’t tell people how much crypto you hold and that you are invested in crypto. They don’t need to know how much you have and when you do this you open yourself up to a robbery or worse.
🔟 Falling For a Scam 🔟
There are a lot of scams out there in crypto. These range from ponzi schemes to giveaways and phishing attacks. You will always need to ask yourself whether the offer in question is too good to be true.
📜 Disclaimer 📜
The information contained herein is for informational purposes only. Nothing herein shall be construed to be financial legal or tax advice. The content of this video is solely the opinions of the speaker who is not a licensed financial advisor or registered investment advisor. Trading Forex, cryptocurrencies and CFDs poses considerable risk of loss. The speaker does not guarantee any particular outcome.