Once you get started on your investment journey, there are many pitfalls/ditches/puddles/dog poop that will be in your way but can easily be avoided. Below we will give you 3 easy pitfalls you can avoid that will save you a lot of your hard earned denero (translation – Money)
#1 – Don’t chase the DRAGON
You will always find one or a number of Cryptocurrencies that are absolutely rocketing, chasing these crypto’s more often than not will result in a loss. This is because by the time they have rocketed, its probably too late as it’s used up most of it’s rocket fuel. In other words the hype that’s driving the price will be dying down.
#2 – Not doing due diligence
A common acronym used in Crypto is DYOR ‘Do your own research’, long story short, most people will tend to read 1 or 2 reviews and consider that project studied. Proper due diligence involves; looking into the various team members and their background, looking at how large the community as well as other methods to identify if you’re looking at a good project. Have a look at our previous article on ‘What a juicy crypto looks like‘ for more info on that.
#3 – Investing too much
What normally happens, especially during a bull run (a period of positive market movement) is investing into a Crypto project that leads to instant gains. This makes the investor believe this is super easy and consequently decides to double/triple or even throw the kitchen sink into their investment! And like clockwork, the market machine starts spinning, takes your investment and eats it up, resulting in a loss of investment. It always best to have a pre-planned amount of capital to invest in the market and STICK to it regardless of market movements. Investing too much is normally the consequence of getting too greedy, control your emotions and stick to the plan, we have a Crypticle on the best investment strategy coming soon!
There you have it folks, 3 easy mistakes that if avoided, can save you a lot of money, we will be doing some more of these in the near future!
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