New to Crypto? Don’t make these 4 mistakes

Once in a while, the crypto industry makes the news. We sometimes hear about a surge in the value of Bitcoin or Ethereum, for example. Celebrities such as Elon Musk often suggest the use of a specific coin. Numerous people are interested in digital assets. They want to invest, but they just don’t know where to start in the crypto industry.

The crypto industry is fascinating, but it has many pitfalls, too. When you’re a beginner, you’re likely to fall into some scams and make mistakes. They can cost you a pretty penny.

Mastering bitcoin price prediction isn’t an easy thing to do. Keeping your digital money safe is yet another affair. Here’s a list of four common mistakes that new crypto investors tend to make.

Not Enough Research Before Starting

Stepping your toes into the crypto industry can be exciting. It’s about discovering new exotic terms (wallets, blockchain, airdrops, and so on) and also a vibrant community that enjoys digital assets and the values they bring, such as safe and secure transactions

Any newcomer who feels like investing in these digital coins must do diligent research beforehand. You don’t need to become an instant expert in technical things such as blockchain validation; it’s better to have a clear overview of what crypto is about. Mainly a huge amount of highs and lows, some sweat, and moments of fear when the market is down.

There are many resources, such as YouTube videos, Reddit forums, and social media accounts of crypto analysts. News sites specialised in crypto are also a good way to start, although it’s hard to see which ones are the most legit at first glance. Most of these sites will try to push you into their sponsored content, which means that you have to pick the most reliable sources as you go.

Fear Volatility
Crypto prices are like a rollercoaster. A roller coaster on steroids. There isn’t a dull day in this industry because the market operates at any moment of the day. It means two important things: it’s easier to make a decent profit than traditional stock market shares in the short run, but it’s also easy to lose a lot in a matter of seconds.

A crypto investor experiences many conflicting emotions, especially during a bull run when its assets tend to go through the roof before correcting. It’s all part of the game, and people need to understand the emotional impact that a sudden loss (or a sudden win) can have on their psychology and well-being.

Despite this uncertainty, two things remain constant in the crypto world. If the Bitcoin price goes up, pretty much every other asset goes up, too. World news is also very important for crypto buying and adoption. Keep your eyes peeled for any event that could have a significant impact on crypto and make some decisions based on it.

Keep Your Assets In The Wrong Places

First things first: to get into crypto, you must buy some coins on a platform. Because most people start on a big platform such as Binance or Coinbase, it’s crucial to understand that your newly acquired crypto isn’t safe. For this purpose, the industry has invented physical and digital wallets. Some of them work as apps or browser extensions such as Metamask. Their goal is to keep your digital assets in a safe place, thanks to a combination of advanced security measures.

Another thing: please keep your credentials and your recovery passwords in a safe place. For most of us, it could be a piece of paper because storing your digital keys on your computer could have negative consequences. Remember, there are thousands of crypto scammers out there: the main rule is to never give your keys to anyone else but you. It’s still the best way to make sure that it won’t get stolen.

Fall For the Newest Scam
Many people get into crypto using social media. More often than not, we’re bombarded with reels, videos, and images of successful individuals showing off flashy cars and expensive watches. Although looking rich and affluent is part of the glamour, it’s important to distinguish reality from fiction. Indeed, there are plenty of scams in the crypto world.

The most efficient scam someone can fall into is through social engineering. You might come across testimonies of a celebrity who allegedly made money using crypto. There will be an invitation to use their tools, with a fee, and you might end up putting coins in the wrong project.

The same goes for Telegram channels and YouTube tutorials about the next big project. For any serious project, it’s better to see at least 100,000 people interested in investing. This doesn’t mean that the project will make a profit in the long run, but it’s a clear indication that other people did some research.

Lucky for us, looking for scams and avoiding them becomes increasingly easier as you become a seasoned crypto investor. Not everything that glitter is gold, specially in the crypto industry. On the other side, there are a great number of passionate people out there. Don’t hesitate to get inspired by what they have to say, but use their advice with caution.