4 Mistakes to Avoid While Investing in Cryptocurrency
Investing in cryptocurrency can be a tricky business. With so much to think about, it’s easy to make mistakes. We’ve compiled the top few mistakes people have made when investing in crypto and how you can avoid them.
1) Investing without research – There are many different cryptocurrencies on the market today, each with its unique value proposition. One of the easiest ways to lose money is by not doing enough research into which coins are worth your time and effort. From bitcoin to sgd, many currencies will likely never get off the ground.
2) Not diversifying your portfolio – It might seem like a safe bet, but putting all of your eggs in one basket is never recommended for any investor. Diversification ensures that you don’t put all of your money into one coin or project.
3) Letting your emotions get you – This is a rookie mistake! When prices are going up, it’s easy to get caught up in the excitement and invest more money than you intended. Conversely, it’s tempting to sell off all your holdings at once when prices drop. Instead, try to stay level-headed and make decisions based on research rather than emotion.
4) Failing to set a stop loss – This is one of the most important things you can do to protect your investment. A stop-loss automatically sells off your holdings when they reach a certain price point, preventing any major losses if the market turns worse.