As more and more people look to invest in the cryptocurrency market, many experts are warning new investors to take care when spending their money. Experts like Robert Testagrossa have been in this world for a number of years now and they have seen more than their fair share of investors making errors, which have cost them money.
There are some mistakes which are more common than others, which we are going to be taking a look into today. If you like the idea of getting involved in cryptocurrency then here are some of those mistakes which you should be looking to avoid.
Buying From The Exchange
No matter which company you sign up with, they will give you the chance to buy crypto straight from them. They will quote you a price, you will select how much you wish to buy and just like that you are a crypto owner. This however is not the best or lowest cost way of doing things, not at all. The best place to buy is on the exchange, where you will be buying directly from those who are selling, and you will always get the live price for your investment.
FOMO Investing
FOMO stands for fear of missing out and sadly this is the way that a lot of people buy and sell. Instead of doing what they should and buying at the low end and selling at the high end, they will buy as the price rises, scared of going to high, and then panic sell as it falls, scared of losing their investment. This is never a good way to trade and you will end up losing money.
Not Researching
It is critical that no matter what you plan to invest in, that you have a good amount of knowledge about what exactly you are investing in. There are so many coins out there which really don’t have much value but which can get easily pumped with a smart social media campaign. Those who end up investing in these coins just lose their money, and this is why you absolutely have to know what you are investing in. There is a wealth of information online about various projects and ideas which you can invest in, and that is why there is no reason not to get your research done.
Getting Greedy
A bull run within the crypto space can be very exciting indeed and it seems that every day the prices will just keep going up and up again. Sadly however a bear run can be brutal and you can watch your investments crash very quickly indeed. This is always something to beware of and you should constantly be taking stock of what that money would mean to you in the real world. If you are financially comfortable then you don’t have much to worry about at all, if however that money means a lot, cash out and enjoy it rather than getting too greedy.