Such Mistakes Can Make Success Impossible in the Crypto World
The crypto winter is here, and hopes to stay for a long while! In contrast, you are waiting for it to end! However, things do not always go the way that you want them to. Therefore, in the meantime, think about your past mistakes. This would be a great time to introspect over them.
To illustrate, here are five common mistakes that you should avoid.
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Do Not Do What Celebrities/Influencers Do
There is a certain glamour in doing what the rich and famous do! You follow them on Twitter, Facebook, YouTube, etc. They hint at investing in cryptocurrencies. On your part, you do not even know if you will get something genuine or not. All you know, is to blindly follow!
Maybe, you make some purchases. Soon after, developers get into action. They ensure another supply of tokens on the concerned blockchain. The figure runs into billions. Thus, your influencers and crypto networks make worthy profits. You generally remain on the losing end!
Also, refuse to pay attention to journalists and social media posts. Instead, explore official websites. Interact with representatives or developers.
Invest; Do not Gamble
Have you gained sufficient experience, to make your own decisions? If not, do not jump into anything.
To begin with, invest in just a small amount in cryptocurrencies. Get some expert/professional advice on what coins/tokens to invest in, before you part with your hard-earned money.
If you invest large amounts, you might jump into trading right away. The term refers to using cryptocurrencies for concluding business deals.
True, the cryptocurrency marketplace does offer many, and even rare, opportunities to become wealthy. However, a proper plan should be in place for utilizing the opportunities wisely. Otherwise, the whole thing will turn out to be a mess. Note that there is no effortless way to gain success. Above all, do not treat the crypto world as a gambling den. Respect it, and it will respect you!
Avoid FOMO and FUD
FOMO means Fear of Missing Out. FUD means fear, uncertainty, and doubt. If you let either of them enter your mind, you may expect to be a loser.
How can you prevent these entities from disturbing you?
It is simple. Just purchase a limited number of cryptocurrencies. Being sensible about taking unnecessary risks, puts you in the pathway of success.
Even more sensible would be to wait until prices lessen. Trading seems easier, because many investors show signs of quitting. If you wish to, you may even practice Contrarian investing. Here, people refuse to follow existing market trends. They purchase, when others are selling. They sell, when others are purchasing.
A great example of a Contrarian investor is Warren Buffet. Now, he is one personality that is safe to follow! Just observe the signs of FOMO and FUD in the marketplace. Then, stay put, until either passes.
Avoid HODL and SODLS
Hold on for dear life, is what HODL means. You can sell, or sold, is what the misspelt SODL means.
It would never do to cling on to your assets forever! You will have to let go, sometime or the other. However, you must know the right time to do so. That is when SODL comes into play. Thus, do not make HODL your best friend! Experienced experts can help you in decision-making, whenever you need.
Then again, opt for certain types of cryptocurrencies. For instance, they must have revolutionary features. They will prove extremely competitive for their counterparts that are already firmly established. Then again, they must flourish on decentralized platforms. It means that they are permissionless digital currencies.
Learn From Your Mistakes
Always give your own feedback, after every action. Then, ask others casually, what they would have done in your place.
Have the courage to recognize your ‘investment’ or ‘lack of planning’ mistakes. Take the trouble to analyze them. If you feel they have destroyed your gains, vow that you will not repeat them! Similarly, if you have been found yourself becoming a victim of get-rich-quick schemes, shady projects, etc., do not berate yourself too much. Just tell yourself firmly that you will not allow yourself to get ‘caught’ again.
