Mistakes are learning opportunities. According to the fourth richest person in the world, Warren Buffett, learning from one’s mistakes is good. But, he adds, learning from other people’s mistakes is better as it saves one from havIng to suffer the consequences of an unintended error. Though experience is a great teacher, learning from those who have done the actual leg work allows those who haven’t to sit back, relax, and choose wisely – knowing what they now know. Hopefully, the below mistakes unintentionally committed by those who invested in crypto currencies will help inform your decision. Remember, to be forewarned is to be forearmed.
Letting fear rule your decisions
There seems to be two major fears crypto investors deal with: the fear of loss and the fear of missing out. Both require the proper regulation of one’s emotions. The first fear rears it’s ugly head during trading, whether it is for the short or long term. For instance, an investor regularly purchases Bitcoin using a strategy referred to as DCA or Dollar Cost Averaging – a technique that requires one to invest a pre-determined amount in a fixed schedule regardless of a crypto’s existing market price. But what if, before your scheduled investment, the price of Bitcoin fell. Are you brave enough to make a purchase of the digital coin’s second share? Most are usually reluctant, if not terrified, do so. The fear of potential loss, though natural, is something a serious crypto investor needs to get over with. The same applies to those who are prompted to buy, rashly and unthinkingly so, for fear of missing out on the latest popular token out in the market. Reign your fears and emotions in. There are numerous crypto currency opprtunities every day thus making any fear of missing out irrelevant. Also, one way to regulate your emotions and temper your fears is by gathering all the information you need. In doing so, you let the gravity of facts sway you instead of your irrational fears.
Failing to do research
Are you willing to invest in something you know little of? Do you want to part ways with your hard-earned money based on a coin recommended by a trusted friend of your friend? If you have no information about a certain crypto and you’re solely depending on what others, or even so-called experts say, it is highly likely that you may lose money.
Do your own research. Don’t depend on hearsay. Gather all the data you need that will help you make an informed decision. Try not to rely only on experts, Twitter recommendations, or online groups. Read up on anything and everything you can get your hands on about your preferred crypto. You need not chuck out your friends’ recommendations. Consider all the data that comes to you. Weigh their worth. Feel free to go to trusted crypto currency communities such as Decred Slack, SingularDTV Slack, Crypto Twitter to get your dose of friendly and reliable crypto info. After collecting all you need to know, decide what you think and feel is best to invest in.
Not saving a hard copy of anything and everything
Crypto currency trading is primarily done online. Usernames, passwords, codes all exist and are kept in the universe of the web, and in the convenience of your computer. What would happen if your PC crashes, is stolen, or hacked? To avoid these scary scenarios, always keep a hard copy of all your passwords. Literally keep a physical, tangible copy of all these written down or printed, and stored in a secure location. Some keep their passwords in a locked safe. The same somewhat applies to saving records of your two-factor authentication code. It is important that this be similarly stored offline. Not all cryptos provide customer support. Best to do the work yourself in keeping everything secure. Your future self will thank you for it.