Cryptocurrency investment is attractive to the younger generation because it has promising results. However, do not just invest. Understand in advance the things you should avoid. Like stock investing, there are many mistakes that novice investors make when trading crypto assets. The key is not to be afraid of missing out (FOMO) with the news that appears. Here are 5 common mistakes that crypto newbie investors often make that you should avoid.
1. Buy coins because they are cheap. Don't be tempted by cheap crypto coins. Sometimes prices are low for a reason. Watch out for cryptocurrencies with declining user rates. Oftentimes too, developers leave the project and stop updating properly which makes the crypto coin insecure.
2. Get entangled in fraud
Cloud scam. Multiplier Fraudsters sometimes contact victims via email or text with "investment opportunities". They promise to give investors double or triple the amount they put in bitcoins if they send their cryptocurrency to certain digital wallets.
* Spoofing
Criminals can easily raise or lower the price of a very small or unknown cryptocurrency. They also create fake buy or sell orders and sometimes send currency values ​​skyrocketing by hundreds of percent all at once.
* Dangerous hardware wallet
Use hardware crypto wallets to keep funds safe. Don't be tempted by unknown wallets or no proof of security.
* fake coins
With so many types of coins on the market, it can be difficult to tell which ones are real and which are not. When you invest in fake coins, criminals can steal your identity and money. They do this through phishing. Don't take other people's word for it and use as many sources as possible to do your own research.
3. Doing the 'All-In'
Some of the more suspicious trading apps advise you to maximize your bankroll by betting as much as possible. A better crypto investment tip is to only use a certain proportion of your investment capital, say 5 percent. Always keep an emergency cash fund that is never invested in the market.