Worst Cryptocurrency Investment Mistakes Ever Made

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The craze around crypto seems to be gaining momentum instead of fizzling out. Despite the risks of getting banned, the crypto community is thriving and investors are going all in. The experienced traders have understood the pattern by now and know how to tackle the volatility that comes with the market. The newcomers have the wisdom of the elders to guide them and they have a lot of material available on the internet to help them.

A lot of investors have learnt things in the crypto market the hard way. There are a few mistakes made by them that are enough to teach us a lesson. Let us take a look at the worst cryptocurrency mistakes ever made.

1. Investing in crypto using unverified exchange platforms

There are so many players in the game that it is difficult to weed out the frauds from the legitimate crypto exchanges. If you are new to this, then investing time in research before you invest money in crypto is highly recommended. Unverified platforms can not only dupe you and take your money but also capture your personal information based on the method of payment used. If you are wondering how to buy Ethereum, Bitcoin, Dogecoin, or any other currency safely in India, CoinSwitch is the perfect place to start.

2. Investing all the funds in the same cryptocurrency

You may have your favourites but one of the worst mistakes ever made by any investor was to put all his eggs in one basket. It is extremely important to maintain a diverse portfolio. In case there is loss due to anyone crypto, then you have the others to back you up and you won’t end up losing all of your investment.

3. Investing the funds that you would require immediately

Although crypto has been known to help make investors profits quickly, those are the exceptions. Not all crypto has turned a profit that quickly. One of the worst mistakes ever made was to believe that the exception is the trend. If you are investing in crypto, it is a long-term commitment. If you are expecting a booming profit to reallocate your funds, then that’s a big mistake. Not only can you lose money but you may tie up the capital that you need.

4. Investing in the most popular cryptocurrency

There are a lot of cryptocurrencies out there that will promise you a very bright future and call it potential. The truth is, you need to separate yourself from hype and look at the crypto at hand practically. Identify how much they have actually delivered. You cannot go by the word of a celebrity and invest because they think it’s good or sustainable. One of the mistakes made while investing is going by perception instead of identifying facts.

Image by Miloslav Hamřík from Pixabay

5. Investing in crypto because the price is low

If you have invested in crypto because the price is low, it may not be the smartest decision. The market is known for its volatility and you don’t need to be reminded of the ups and downs that are a part of this market. The low price may mean the utility is low and the crypto is headed towards a point of no return. If you are unsure of which crypto to invest in, you can hang back and observe the patterns of the market before jumping on the crypto bandwagon.

6. Investing because crypto requires no work and going all-in

It has been said time and again that cryptocurrency is a high-reward but a high-risk market as well. If you are investing all your savings in cryptocurrency you may want to think again. One of the most dangerous mistakes ever made was to not provide for losses. This means you should invest only as much as you can afford to lose. The popular notion that crypto is “easy money” is grossly wrong. If you are investing blindly, then you are at great risk. You need to put in time and research about what affects the market, what makes for the value climb, and what is the best time to invest.

7. Not investing in a wallet

Whenever you lose your wallet, you feel the pinch and keep thinking of how much money you lost. Example: the value of 1 Eth to INR at the beginning of December 2021 is 3,41,015 rupees. Can you fathom the loss if 1 Eth gets stolen from you? Luckily, you don’t have to. One of the biggest mistakes ever made was not investing in a wallet. Your crypto is vulnerable to theft if you leave it at the exchange platform. It is best to protect your assets and invest in a wallet. Be warned, if you forget the password, you may lose your assets forever as there is no way to recover these.

Revision of the worst cryptocurrency mistakes ever made is a reminder to tread carefully and invest mindfully.