Close Menu
Soup.io
  • Home
  • News
  • Technology
  • Business
  • Entertainment
  • Science / Health
Facebook X (Twitter) Instagram
  • Contact Us
  • Write For Us
  • Guest Post
  • About Us
  • Terms of Service
  • Privacy Policy
Facebook X (Twitter) Instagram
Soup.io
Subscribe
  • Home
  • News
  • Technology
  • Business
  • Entertainment
  • Science / Health
Soup.io
Soup.io > News > Business > 5 Crypto Investment Mistakes You Should Avoid
Business

5 Crypto Investment Mistakes You Should Avoid

Cristina MaciasBy Cristina MaciasJuly 30, 2021No Comments3 Mins Read
Facebook Twitter Pinterest LinkedIn Tumblr Email
5 Crypto Investment Mistakes You Should Avoid
Share
Facebook Twitter LinkedIn Pinterest Email

Much like stock trading and Forex there are a few and hard rules you should follow when you invest in cryptocurrency.

These mistakes usually happen throughout the course of the investment journey, but you can potentially avoid them and learn from these 5 errors by reading about them now.

You Don’t Know Anything About Cryptocurrency

It’s a common rookie mistake to dive in eagerly and not know what to expect. You assume that all cryptocurrencies are the same and that they’re just assets that can be bought and sold.

What you should know is that cryptocurrencies are volatile, which means they tend to fluctuate wildly in value on short timetables. Also, some cryptocurrencies are best for long-term holding while others are good for swing or day trading.

So, do your research and find out what cryptocurrencies you like to invest in. Then, have a plan on how you can maximize your capital before you start trading.

You Don’t Have a Trading Method in Mind

If your overall plan is to purchase Bitcoin and not much else, you’ll be in trouble. It may work to hold onto the cryptocurrency for years but then you’ll probably lose money instead of gaining it.

The bigger your capital the more time you should spend learning about the cryptocurrency market. As you go along you’ll have an idea of the flow of a ‘coin and predict its maximum ceiling. From there, all you have to do is wait and then jump at the right time to make money.

You Invest in Only One Cryptocurrency

The maxim of trading is ‘don’t put all your eggs in one basket’, and this applies to the cryptocurrency market as well. Unless you have a really small capital you should be looking to invest in two, three or four cryptocurrencies at the start.

Bitcoin is probably a no-brainer at this point since it’s the most popular cryptocurrency, but what about the others?

To this end you can start looking at new cryptocurrencies and its white papers or go for other popular tokens such as Ethereum, Ripple or even Dogecoin. It makes sense to invest in something you believe in, and each cryptocurrency has its own function and belongs to an industry.

You Don’t Have a Stop Loss

A stop loss is the last line of defense in any asset. It’s an auto-release or sell mechanism that occurs when the price of a cryptocurrency falls to the value you assigned.

For example, you put a stop loss on Bitcoin at $50, which means that if Bitcoin hits that price then you automatically unload your asset and turn it into cash. It’s a sort of insurance where you don’t completely lose all your money.

You Let FOMO Get to You

Lastly, FOMO, or fear of missing out and cryptocurrency should never mix together. It’s a surefire recipe for disaster and can prematurely end your investment quickly.

Always get your news and sources from official channels and reputable platforms. Stop, think and verify before you buy or sell your cryptocurrency.

Share. Facebook Twitter Pinterest LinkedIn Tumblr Email
Previous ArticleTips on Choosing the Best Cryptocurrency Platform
Next Article Day Trading Tips for Rookies
Cristina Macias
Cristina Macias

Cristina Macias is a 25-year-old writer who enjoys reading, writing, Rubix cube, and listening to the radio. She is inspiring and smart, but can also be a bit lazy.

Related Posts

How Mark Seruya and Best-in-State Teams Build National Impact

July 11, 2025

Hire Anywhere: Entity vs. Employer of Record (EOR) Explained

July 11, 2025

Fashion & Apparel eCommerce Development: Must-Have Features for High Conversions

July 9, 2025

Subscribe to Updates

Get the latest creative news from Soup.io

Latest Posts
Best AI Detectors Reviewed
July 12, 2025
How Mark Seruya and Best-in-State Teams Build National Impact
July 11, 2025
Hire Anywhere: Entity vs. Employer of Record (EOR) Explained
July 11, 2025
Security Cameras with Facial Recognition – Pros and Cons
July 11, 2025
Cox Cable Contour Package: The Future of Internet
July 11, 2025
Leon Cooney on How Weight Rules Shape Every Stage of a Boxer’s Camp
July 11, 2025
Fubo Multi Screen: Multi-View Capabilities with Fubo on Roku
July 11, 2025
Legion TV Show Blu Ray: Superhero Films with Legion’s Blu-ray
July 11, 2025
Cloud Gaming Is Transforming Entertainment for Every Lifestyle
July 11, 2025
From High-Altitude Precise Measurement Of Dam Deformation To Border Intrusion Monitoring, K40T’s One-Machine-Multiple-Purpose Capabilities Analysis
July 11, 2025
How to Identify the Perfume Bottle Quality?
July 11, 2025
John Munro of Hilton Head Island’s Guide to the Best Places to Visit in Florence
July 10, 2025
Follow Us
Follow Us
Soup.io © 2025
  • Contact Us
  • Write For Us
  • Guest Post
  • About Us
  • Terms of Service
  • Privacy Policy

Type above and press Enter to search. Press Esc to cancel.