Is Flow Crypto A Good Investment

Anyone can make big profits from investing in cryptocurrency in 2022. You just take to invest at the right time — like in December 2017, when no one could lose.

But investing at the right time requires luck.
Only those who improve their cryptocurrency investment strategy
every twenty-four hours, one mistake after another,
consistently crush the masses.

Only the most skilled and disciplined investors are running away with big profits over time, while dreamers and noobs stop upward
hodling
useless coins and that is a bad cryptocurrency long-term investment strategy.

This is why I have curated the ultimate cryptocurrency investment strategy: a listing of common mistakes to avoid when investing in the crazy crypto earth.

Nosotros’ll showtime with basic mistakes and progressively move to more than advanced ones.
And so if you are an experienced investor, make sure to read until the end.

Let’southward get started!

i. Yous Don’t Know the Basics

If yous’re get-go, you’re probable eager to trade. I get it, really.

Only don’t rush information technology. Have a picayune bit of time to develop a basic cryptocurrency trading strategy and to educate yourself.

Do you know the basics of blockchain technology and Bitcoin? Do y’all know what
circulating
vs
full supply
means? Do you empathise what inflation is? Do you lot know nearly
exchanges,
wallets,
private keys, and
public keys?

If you lot can’t answer these basic questions, you’ll exist in problem quick enough.
Have some fourth dimension to prepare yourself, it’south essential.

To learn the basics, navigate our website – there are tons of cool resources to get started and to learn about cryptocurrency investing strategy.

2. You lot Don’t Take Action

Every day, potential investors miss out on cryptocurrency investing because they aren’t confident about how to get started.

Even experienced investors miss on new tools or cryptocurrencies that could bring significant profits simply from non staying active.

Why? Because
they’re agape to make mistakes. The showtime step is taking activeness, so don’t hesitate to swoop right in.

Activeness will result in experience, and
feel will result in better decision making. In fact, the
feel is all about learning from the mistakes you brand.

If you feel ready to brand your first investment, then get for it. Fifty-fifty only $10, on any commutation yous want, with whatsoever payment method you like.

Yous can’t imagine the difference a small step will make versus not taking action.

This is where your experience will first, and you volition feel the highs and lows of investing – it’south a wild ride.

3. Yous Don’t Understand the Technology

What makes Bitcoin and many cryptocurrencies innovative is their underlying technology. But if you lot don’t understand the foundations of the technology, the road will exist risky.

Yous don’t want to rely on others’ ‘knowledge’ to make your crypto investment decisions. Until you tin judge these projects for yourself, you will be missing out on big opportunities.

After all, the creators of Bitcoin and its first adopters were all techies.

To avoid this,
detect educational sources you trust, accept the time to learn, and most importantly, enjoy the journey of learning.

Once you empathise
cake rewards, consensus algorithms,
premining, and all the fancy jargon, y’all will exist an improved, independent investor.

Blockchain engineering is continuously advancing, so go on upward with it the best yous can.

four. You lot Ignore Fees

Now that you’ve taken activeness,
have your time and find the right exchange with the best fees.

When people start trading, they make lots of trades a day hoping to earn small profits. While this is squeamish in theory, fees are killing them. Even if they are low, it all adds upwardly.

Do your research before you merchandise. To become a successful crypto investor, you demand to get-go taking good habits right now.

5. You Overtrade

Some investors, mostly beginners, want to brand 20 trades a twenty-four hours. This is dangerous.

Ultimately, many of them lose from fees or because they make bad trades a fault and and so trade more to recover their losses. Simply to dig a deeper and deeper hole for themselves.

The reality is that in that location aren’t xx good trading opportunities in a day.
Trading too much leads to poor decision making and a bad cryptocurrency investing strategy.

half-dozen. You Don’t Sympathise Tax Implications

Overtrading also increases your revenue enhancement liabilities.

At least in the United States and Canada. Well-nigh people think that they just owe taxes on profits that were sold back to USD/CAD, when in fact,
you owe taxes on every unmarried trade you make – fifty-fifty crypto to crypto.

The IRS and CRA view every trade as a realized gain or loss. Put just, if you buy Ether with Bitcoin, they consider this a taxable event on a realized proceeds or loss. They assume that you sold Ethereum to USD, then purchased Bitcoin with USD, even though this is not what happened.

Ignoring both tax implications and exchange fees will severely impact your overall cryptocurrency investment strategy.

Taxation implications, in addition to accumulated fees and bad trades, is some other reason why you should not overtrade.

vii. You Invest Your Life Savings

Rule number one of investing; don’t invest more you lot can afford to lose.

Y’all should go into this gear up to lose any you put in. Ultimately, as the toll swings up and down, you lot should remain calm and still be living a healthy life with room for regular spending.

I’ve heard endless horror stories of people investing greedily with their entire life savings or borrowing big sums of coin.
This is a HUGE mistake.

Funny plenty, even if you hitting it large, your greed volition likely win you over. For case, if you invest $50,000 and at one point have $150,000, then your mind will rationalize and normalize these winnings to experience less pregnant than they are.

The side by side matter you know, the marketplace drops, and you are back at break even, or at a loss.

8. You Call up Cryptocurrencies are Shares

Take your fourth dimension to educate yourself and understand what yous’re investing in.

Cryptocurrencies are not shares like stocks. Yous have no ownership in the visitor and receive no dividends.

If a company issues a cryptocurrency, then information technology is very possible for the company to turn a profit or get acquired, with no benefit to you. A company can be doing very well, withal their coin can drop.

The merely exception here may be security tokens which can grant ownership to their investors. Simply fifty-fifty then, it’s up to the guidelines of the offering.

Cryptocurrencies are a different game.

9. Y’all Chase Cheap Coins

Don’t hunt cheap coins
with dreams of lambos and private jets.

Lots of uneducated investors in the crypto space buy low priced cryptocurrencies because they call up at that place is a college chance of big returns.

If presented with one coin priced at $0.01 and another at $75, they blindly purchase the $0.01 money considering they call up information technology’s easier for a money to go from $0.01 to $0.02, rather than from $75 to $150.

This is a common trap.

There are lots of factors that impact a coin’s price, including ii important ones: the
circulating supply
and the real world value of the coin.

More often than not, a cheap coin has a
huge supply of coins, which dilutes the toll of each coin. If the supply is massive and at that place is little real-world value, then the coin priced at $0.01 is not undervalued and should exist priced that low.

A better factor to consider when looking for coins with growth potential is the
market capitalization
of the coin. The ‘market cap’ is calculated as [current price * circulating supply] and is oftentimes a better (although not perfect) indicator of a coin’due south valuation past crypto investors.

If you want to find the side by side jewel coin, look for coins that have a low market cap.

Low market cap coins have more potential for growth, but they also come with a lot more than run a risk (failure,
illiquidity, etc.)

Ultimately, you lot should stay away from those coins if y’all’re still at a beginner level, and pick your next investments based on their potential existent-world value.

10. You Think You Must Always Be Right

I hate to tell y’all this, but become over yourself.
Yous’re not ever correct. And information technology’southward okay.

Investing is a game of speculation which involves some amount of luck – fifty-fifty for professional investors. To be a winner in this space, you only need to be correct a certain percent of the time.

For example, if you 2x your investment 55% of the time, and then you tin can afford to lose 45% of the time equally you will make coin in the long run.

xi. You Make Sloppy Mistakes

Hold your horses, buddy!
Have your time when transferring your coin.

Don’t rush, and make sure the sending and receiving addresses are correct. Never blazon an accost. Just copy and paste them. This style you avoid whatsoever run a risk of typos. And hey, it’s faster!

After you lot copy and paste it, always verify the start two characters and the concluding iii characters match your address.

12. You Don’t Diversify Your Portfolio

Your cryptocurrency investment strategy must involve diversification so yous need to learn most crypto resource allotment strategy.

While it may exist tempting,
don’t put all your eggs in one handbasket. Every experienced investor
hedges, or protects his/her risk by investing in multiple assets.

You might notice some coins correlate where when one goes up, the other goes down. If this is the instance and you lot like both coins’ futures, then invest in both. Your investment volition exist much safer.

My recommendation:
own a minimum of 5 cryptocurrencies.

13. You Over Diversify Your Portfolio

Exist sure to choice a number of coins that yous can keep track of. This means keeping upwards with news and price action.

My recommendation:
invest in a maximum of 10 cryptocurrencies at a time.

Diversify responsibly!

fourteen. You Don’t Practise Your Own Inquiry (DYOR)

Research a money earlier you invest in it.

Then many people invest in crypto based on hype. They see other investors on Twitter or Facebook talking about a coin, meet the coin’southward price rise, and then buy off of impulse. This often ends badly.

Do your own research.

When researching a project, you should be able to answer the following:

• What is the
  mission
  of the project?
• Who are the cadre
  team members? Take they worked together earlier or take past success?
• When is the
  
  mainnet
  
  expected to launch?

If y’all can answer these, then information technology’due south a good showtime.

Don’t be afraid to miss out on investment; there will ever be more than to come up.

fifteen. Y’all Research Poorly

One time you empathize WHAT you should research, then next is starting the research.

The process volition be fourth dimension-consuming if you’re just starting.
But the more you research, the better you’ll become at it.

Here are a few basics to get started:

1. Take a look at each coin’southward
   BitcoinTalk.org
   announcements thread and website.
2. Search on the net to see if there are reviews on the coin or mentions of it being a scam. If you run across lots of talk about it beingness a scam on Google or
   Reddit, then information technology’s worth excavation deeper into that to understand the reasoning.
3. Bank check on the economic science of the money such every bit its
   marketplace cap,
   trading book, price history, and total versus
   circulating supply.
4. Cross-reference opinions from industry experts. Never trust 1 single stance.

16. You Don’t Proceed Upwards to Date with your Investments

As you come to own 5, 6, 7, or more coins, the amount of responsibility on your shoulders increases.

Be sure you
keep up to date with all of their developments and price action.

To practice this:

• Follow them on social and through their blog
• Join their communication channels (Telegram, Discord)
• Bookmark their websites and Bitcointalk threads

17. Yous Don’t Take a Plan that you Stick With

Lots of folks permit the market highs become to their head. Once their portfolio hits an
all-fourth dimension loftier, they but desire to get higher.

On the other manus, as a coin drops in price, they hold until 0 because they are stubborn about their crypto investments.

The best way to avert these situations is to set a target, stick with it, and don’t be greedy.

So, when you lot enter a position, be sure to write down your plan.

18. You Don’t Take Your Profits

If you want your cryptocurrency investment strategy to profit, you accept to sell and accumulate profits eventually.

Learn from others mistakes. At the terminate of 2017, during the big boom of cryptocurrencies, lots of investors became rich
IF
they sold for profits. On the other hand, many had theoretical profits but overheld into this
conduct market.

Now, they are stuck property at a loss, waiting for the next
balderdash run.

Remember:
you don’t profit until you sell dorsum to realize your gains.

19. You Don’t Cutting Your Losses

Existence stubborn is piece of cake. Simply at the stop of the twenty-four hours, the market moves despite how yous feel.

Don’t hold a money you no longer believe in.

You should always ask yourself: “if I had not bought this coin, would I purchase this coin correct at present?”

Be honest with yourself.
It’s okay for things to change.

Additionally, if you planned to cut losses at 15%, then do it, no matter how you lot feel at the fourth dimension. Don’t rationalize that it will ascension – cut your losses and trust the plan.

20. Yous Buy Loftier

I bet that when Bitcoin was at $fifteen,000 or $xx,000, your friends and family were asking you about cryptocurrencies.

That’s because
there is a natural trend for people to follow trends. But those who profit are those who entered the tendency early.

DO Not purchase high, especially when a coin is close to its
best high
.

After all, why buy Bitcoin at $20,000 when you tin buy it at $3,500? Ownership loftier may be the correct decision in some cases, simply is a error mostly.

21. Yous Don’t HODL Difficult Plenty

On the flip side,
lots of investors are impatient and ‘cut their losses’ early on considering of emotions.

The cryptocurrency marketplace is made of cycles, where prices rise and autumn drastically.

If yous purchase loftier, and then yous will demand to wait out an entire new market cycle to end up with profits – meaning a new
comport, then
bull run
– which can exist well over a year of waiting.

Source: imgflip.com

Recollect:
if you yet believe in the project, and so your best bet is to exist patient and hold potent, even if the price is dropping fast.

22. You’re a Math Noob

Any successful investor needs to understand the basic maths behind trading.
If you don’t sympathize the real implications of a twenty% drop, information technology’southward fourth dimension to learn.

Hither are some examples of math-related confusions:

• If an asset drops l% in price, it does not demand to raise 50% to break even again. In reality, information technology needs to raise 100%.
  Remember well-nigh information technology: if y’all purchase a money for $100 and information technology drops to $50, information technology needs to double (+100%) in toll from $50 to hitting $100 again. If it only goes back upwards 50%, then yous will accept $75 – all the same at a loss.
  
  
• The difference between an eighty% loss and a 95% loss is extremely meaning. To intermission even afterwards an eighty% loss, the price needs to bounce dorsum 5x. To come back from a 95% loss, you’re looking at 20x.

Every ten% drop, makes a bigger and bigger deviation.

23. You Don’t Apply 2FA

The crypto world is the wild west. Full of opportunities, but extremely unsafe.

I crucial footstep when working on your cryptocurrency investment strategy is to reinforce the security of your cryptocurrencies.

Enabling
2FA
on every sensitive website is the most of import habit y’all need to adopt to increase the security of your accounts.

2FA, or two-factor hallmark, is another layer of security upon login. Most cryptocurrency
exchanges,
wallets, and services offering to enable 2FA.

To enable 2FA, you will need to download an app on your phone – either Authy or Google Authenticator, and sync information technology with the exchange or wallet via a
QR code. Information technology’s super simple.

Next fourth dimension you go to log in to the exchange/wallet, you volition be required to enter your username, password, and the passcode that the 2FA app shows. The passcode changes every 30 seconds, so for someone to hack your account, they will need your phone also.

24. You Leave Your Coins on Exchanges

One of the most famous mottos in the crypto industry is
“if you don’t control your keys, then yous don’t control your coins.”

Commutation are huge targets for hackers and are e’er at hazard. When y’all go out coins on an exchange, the exchange controls your coins. Y’all are trusting the commutation’s security measures and not your own.

Do yourself a favor – go on your coins in a personal wallet.

25. You Don’t Ain a Hardware Wallet

I will be straight upwardly:
if y’all’ve invested more than than $500 in cryptocurrencies, then
hardware wallets
are a smart investment.

They are asunder from the internet, which means that hackers can only obtain your funds if they steal your concrete device and also know the
passphrase
to access it.
This makes security a much easier task.

If you have big amounts of money, say over $5,000, then it may exist worth buying 2. The second can act as a copy to the outset i, in case you lose it.

Hardware wallets such equally the Ledger Nano S are incredibly secure, reliable, and easy to use when you want to invest in crypto.

26. You Don’t Know Best Security Practices

Both the wallets and websites you choose to employ hold sensitive personal data – practice your best to keep it prophylactic!

If someone compromises your accounts, then you can say farewell to all of your funds. Take security seriously, and learn from those who have learned the hard way.

When using a wallet, hardware or desktop, be sure to:

• Avoid using Public Wifi
• Avoid using unsecured software/extensions
• Employ strong passwords

One more than important tip: practise NOT use your daily e-mail address when you navigate the crypto infinite. Use a separate 1 defended to your cryptocurrency investments.

27. You Don’t Support Your Sensitive Data

Always
back upwardly both 2FA and wallet data.

If y’all lose admission to your computer and haven’t backed upwards your
private keys,
seeds
or
passphrases, then you lot won’t be able to access your coins anymore.

Aforementioned for exchanges: y’all’ll be locked out of your accounts if you lost your phone and haven’t kept a safe copy of the 2FA keys.

Wallets and exchanges will oftentimes guide you through the process, so make sure to
read and follow their instructions carefully.

For 2FA, I recommend y’all backup your keys so when you get a new telephone, yous can recover all of your accounts to log in.
Practice not forget to do this, as information technology will be a huge hurting and time sink if you forget!

28. You Autumn for Scams

Be conscientious out there.
At that place are scammers in the crypto space, and they go smarter over time.

While I know you are non a gullible old lady, here are some trusted ways to avoid scams:

1. Double check the URLs you’re clicking on.
   A URL tin be embedded in the text. What if yous click on a sensitive link – similar a wallet – and cease upward on a different URL? If y’all don’t believe me, click on www.google.com and run into what happens. Yous tin check the URL embedded in a link by right-clicking on information technology, copying the URL accost, and pasting the URL in a new tab. Merely DO Not press enter.
2. Triple check the domains you land on.
   Yous might encounter some surprises. For example, you lot may country on coiinbase.com instead of coinbase.com. And believe me, these websites are ready to steal your money.
   
3. Avert ‘piece of cake money’ opportunities.
   Each time you’re offered to go rich online, there is a hidden scam. This includes
   Ponzi schemes
   such as the famous
   Bitconnect
   case. Recollect: Great opportunities aren’t offered to you on a plate.
4. Inquire questions to Google and communities.
   Blazon [“Website” + Scams] or [“Website” + Review] on Google, and you lot should know soon enough.

29. Y’all Don’t Find a Reliable Community to Learn With

Online communities will be
handy when yous experience whatever difficulty in the cryptocurrency infinite.

Whether yous struggle to use an exchange or have a question about the fundamental value of Bitcoin – or anything else, surrounding yourself with agreeing people is essential.

These communities can also
provide you with a consequent flow of cryptocurrency sentiment to keep a pulse on the industry.

There are dandy Facebook groups, like Cryptocurrency Investing and Crypto Coin Trader. If you’re non on Facebook, then you can search on Reddit, BitcoinTalk, and Uptrennd.

30. You follow shills

Shill is a common word for someone who is compensated or has a fiscal incentive to spread the good word well-nigh a coin, fifty-fifty if it is terrible.

I won’t name anyone in item, just lots of
influencers, bloggers, and YouTubers have been guilty of promoting horrible cryptocurrencies
– sometimes even scams – considering of their own, selfish intentions.

Whether they’ve been paid to review a cryptocurrency or have other incentives (they ain a lot of coins, they know the owners, etc.), you will be the ane paying the price if yous follow their communication blindly.

31. And crowds

Well-known shills tend to cause crowds to follow their footsteps. If they are influencers with thousands of followers, then you lot volition see groups of individuals talking well-nigh a coin in unison.

This tin result in Facebook threads, Twitter threads, and Bitcointalk threads being created with everyone shilling one coin as a crowd.

Do non follow them blindly.
Hear the dissonance, only do your own research well-nigh the coin.

• If you find out the money is indeed promising, I’k sorry for you because – you likely missed the opportunity.
• On the other manus, if you believe there’due south cipher new under the sun, stay confident, because the coin’due south price will surely drop soon.

Accept a cryptocurrency chosen ICON as i case. Lots of people bought in, and in that location was a lot of traction on major forums and social media outlets.

12 months later, after the crowd hype phased away, the toll was down by ~98%.

Follow this advice:
when everyone’south talking about a cryptocurrency, it’s fourth dimension to sell it.

32. Y’all Enter Positions You Tin can’t Exit

If you hold a coin, just no i wants to buy it, then you are in an illiquid market.

Liquidity
refers to the corporeality of ease with which an asset can be bought or sold in a market. You lot can bank check how liquid a coin is past checking its trade volumes on CoinMarketCap.

Liquidity is essential in cryptocurrency:

• What if you think cryptocurrency is going to collapse?
• What if you remember 1 cryptocurrency is going to skyrocket and you need funds to get in?
• What if yous need money for a personal state of affairs?

For any of those scenarios, you’ll need to be able to sell off your position rapidly. If the coin you demand to sell has low liquidity, you might have to sell it at a lower toll to find buyers.

Fifty-fifty worse: if your cryptocurrencies are illiquid,
you might accept to say goodbye to your money for skilful.

The less liquid a cryptocurrency, the riskier it is.

If you’re a beginner, don’t even waste material your fourth dimension considering buying a cryptocurrency that has a low daily trading volume.

33. You FOMO

FOMO, or fright of missing out, is a common behavior in the crypto investing space.

FOMO is when investors experience they are going to miss out on something big, and as a result, will immaturely purchase an asset to hop on the bandwagon.

Examples of such persuasion tin can be projection owners or investors tweeting things like: “Huge declaration released next week” or “Big partnership with a major bank to be announced soon.”

Many
shills
will also take advantage of FOMO by explaining to their audience that a particular cryptocurrency is the next big thing, how the cost is soaring, and if they don’t become in at present, and then they will regret it forever. They persuade investors to buy irrationally – hence FOMO.

Ignore the noise, analyze facts.
Your investment decisions should be based on logic, and NOT on emotion.

34. You lot Fall for FUD

Contrary to FOMO, FUD is short for fear, dubiousness, and incertitude.
The goal of FUD is to get you to sell, not buy.

So, if the shiller(southward) wants to buy into a coin at a lower toll, he volition start spreading bad news about security vulnerabilities, hackings, squad changes, or anything else to cause people to panic sell and lose organized religion in the project.

One time again – use logic. Understand their motives and don’t act on impulse.

35. You Panic Sell

Besides FUD, another simple reason people sell is that the price drops rapidly. But
it doesn’t hateful information technology is going to drop more.

Don’t sell in a blitz. Have a cup of coffee, discuss with your friends who also invest in cryptocurrencies. Or merely await for a competent and up-to-date crypto investment guide.

All in all, “control your emotions” and think your decision twice. Don’t forget this is a volatile market and you should be ready to breadbasket significant losses.

36. You Fall for Media Propaganda

Major news sites volition sometimes release very negative, and oft, threatening news.

The news may be about a state banning the use of cryptocurrencies, or about how Wall Street doesn’t want to make it.
Deceiving headlines are the foundation for propaganda.

A lot of these news articles are intended to generate clicks, controversies, and sometimes even
FUD.
Information technology’s often very exaggerated.

Source: contained.co.united kingdom

One more style of content that can negatively persuade you is sponsored content. Websites and media you trust will promote a product non considering they employ it and similar information technology, just
considering they’ve been paid to promote it.

Sponsored content is fine as long equally it is conspicuously noted that the content is paid for. Many times, sponsored content looks just like not-sponsored content, which tin be deceiving.

The nearly effective modify you tin can brand to meliorate your long term cryptocurrency investment strategy is to read these manufactures – not but the headlines – and
cross-reference opinions. Stay calm and remain skeptical at all times.

37. You Are Emotionally Attached to Your Coins

Many investors get attached to their investments at an emotional level. They put lots of faith into their investments, and
detest the idea of selling before the side by side pump.

I have met several crypto investors who have been down 95% on an investment. They read that the project has been abandoned by the team or delisted from exchanges, just they nonetheless won’t sell because they irrationally believe it volition come back.

Source: imgflip.com

This goes along with our personal biases we mentioned before – humans don’t want to admit they are wrong.

Don’t get emotionally attached to your coins. E’er invest based on logic.

38. You lot Lack Patience

Exist patient – because the sophisticated, wealthy investors are.

You may feel desperate to find the next big investment opportunity, just
“whales” have plenty capital to sit on the sidelines for two or more years waiting for the right time to strike. They can easily stay in a bear market, with losses, for years.

In other words, wealthy investors can beget to be in losses for multiple years to milk shake out weak HODLers. If yous lack the patience and knowledge of this, so you will ever exist buying on the wrong side of the market.

If yous are patient plenty to await even an unabridged year to buy in a bear run or HODL until the next bull run, then you will do good profoundly and that is a adept cryptocurrency long term investment.

39. You lot Don’t Stay Clear Headed

Call back to
stay at-home and relax.

Yous should have invested an amount yous are comfy losing, and so accept fun with it. Don’t permit the negative press or big news sway you.

If yous do let negativity go to you, then you are more likely to make poor decisions.

Disconnect from crypto from time to time to stay articulate-headed.

Source:nypost.com

40. You Don’t Understand the Market Dynamics

Bitcoin only makes up most xl-l% of the market place’s
liquidity.
At that place are thousands of altcoins, and they work in correlation with Bitcoin.

Not understanding these correlations tin lead to poor and costly investment decisions. Those who make money trading crypto understand these dynamics similar the back of their mitt.

At that place are 3 situations for how Bitcoin and altcoins affect one another:

1. The whole marketplace crashes.
   In such a instance, Bitcoin volition often be more than resilient than the other coins. We witnessed this firsthand in 2018: Altcoins dropped ~95%, while Bitcoin dropped ~80%.
2. Bitcoin’southward dominance increment.
   Bitcoin’s cost increases sharply, just altcoins remain stable or go down. We witnessed this in September 2017 – Nov 2017.
3. Bitcoin’s dominance decrease.
   Bitcoin rises gradually, and altcoins increment in price essentially. Nosotros witnessed this in December of 2017.

All of these time frames tin be viewed using coinmarketcap.com. Take your time and await at unlike historical time frames to help yous improve predict the future marketplace!

Takeaway: if you think the marketplace is prepare for a bull run, and then add together more than altcoins to your portfolio. On the other hand, if you believe the market place is going down, sell your altcoins for Bitcoin, or even better, for fiat or
stablecoins.

41. You Ignore Airdrops

Airdrops are
free money with footling to no endeavor.

Many times, new projects volition airdrop their token as a marketing strategy to raise sensation.

Y’all might need to register on their website to claim the airdropped tokens, merely sometimes, yous have to do nothing at all.

Check out AirdropAlert to exist on top of every airdrop opportunity.

42. You Don’t Prepare For Forks

Hard forks are similar to airdrops from a crypto investor’south standpoint –
free money!
Virtually investors I know miss out on these opportunities, which tin can turn out to be quite lucrative.

Bitcoin Greenbacks is an example of a hard fork of Bitcoin, where all Bitcoin holders received one Bitcoin Cash for each Bitcoin in their wallet. Bitcoin Cash trades for well over $100 or $200, so these coins you can get for free, aren’t cheap.

Simply
brand certain the wallet you are using support the fork. Simple as that!

Employ CoinsCalendar and search for the category ‘hard forks’ to stay up to date.

43. You Don’t Utilise the Best Tools Available

The cryptocurrency industry is full of
creative and hardworking people who offer some handy products and services.

Don’t rely on only yourself, use all the tools at your disposal to craft the best cryptocurrency investment strategy and make better decisions.

44. Y’all Concur USDT

Tether, or
USDT, is a
stablecoin
that is pegged to the value of $1. Each Tether is supposed to be backed past one USD in a bank.

There are two dangers to holding USDT:

1. They’ve had a shady past.
   Many believe that not every Tether is backed by a unmarried USD, which means that if you want to redeem $one,000 USDT for USD, then you lot’re $ane,000 USDT is meaningless.
2. Transfers toll a lot.
   Second, near people don’t know this, but merely to withdraw
   USDT
   from an substitution costs several dollars. If you want to transfer funds to another substitution, it is oft less expensive (simply more fourth dimension-consuming) to merchandise dorsum to a cryptocurrency before withdrawing.

While it’due south okay to enter USDT positions for brusque-term trades,
don’t agree information technology for too long.

45. You Don’t Buy the Rumor

There’s a popular narrative that says, “buy the rumor, sell the news.”

Oftentimes, cryptocurrency projects launch their coin before a final production is made. Rumors can spread effectually the customs well-nigh when their product will exist complete, which companies volition partner with them, and which exchanges the cryptocurrency will be listed on.

Usually,
these rumors create lots of hype. The hype tin grow to be then strong that
when the existent news is released, the price drops.

One example is the Verge projection, which at ane time had rumors spread by John McAfee and other prominent figures, discussing partnerships and innovations. The toll was skyrocketing on rumors, and some made the best decisions of their lives by getting in early on.

46. You lot Buy the News

On the other hand,
when the news comes out, do not buy it
– it’s probable too late. This is when those who bought the rumor will take their profits.

When the fourth dimension came for real news to be released nearly Verge, the toll dropped drastically – well over 80%

Then, instead of merely buying coins at the time the news is released, take some risk.
Purchase the rumor, expect for the bubble to abound, and sell when the news comes out.

You’ll thank me later.

47. Y’all Don’t Understand How to Read a Trading Chart

Once you sympathise some bones dynamics such as supply and demand, then you lot should showtime learning how to read trading charts, too known as technical assay.

Technical analysis is a science which helps y’all improve predict the future by analyzing historical market place data.
You’ll gain a feel for when markets are about to plow, or if assets aren’t priced properly.

Source: tradingview.com

For some, it’s super helpful and core to many people’s cryptocurrency investment strategy.

BabyPips is a popular place to start learning technical analysis, and it applies to all markets, not but crypto.

Knowing how to read charts tin can requite you an advantage over those who don’t
– and it can be quite lucrative.

48. You Don’t Gear up for Bull Markets

Do you believe the market place is dead and the entire crypto industry will vanish away just because Bitcoin drops twoscore%? Of grade not. These cycles happen,
and then don’t be afraid to become confronting the crowd.

If you sold when y’all were in profits, and so you should have
fiat
set up to invest in cryptocurrencies during bear markets.

Keep these funds available in your wallets and
be prepare to accumulate your favorite cryptocurrencies when anybody else in the market place is panicking.

Source: tradingview.com

But, don’t FOMO! Generally, comport markets can last for well over a year. If you buy the dip too early, you’ll finish up losing a lot of money.

Acquit markets should also give you lot plenty of fourth dimension to find some altcoins worth investing in. Then do not expect until the bull market is dorsum – do your research in advance.

49. You lot Don’t Mind to the Marketplace Sentiment

If the overall sentiment varies, and then then may the price.

While you may wait a bull market shortly or be optimistic near a cryptocurrency, other investors may feel the opposite style.

This is why listening to the sentiment of other investors in the industry is crucial. If y’all don’t, yous might miss the adjacent bear/bull marketplace, or the next cryptocurrency nigh to moon.

And so, how do you listen to the sentiment of your peers?

• Read other investors’ thoughts. Not thoughts from influencers or media – from investors, like you and I. Y’all tin can do this by joining and participating actively in some of the all-time crypto communities (read mistake #29)
• Employ tools. These tools scrape data from the web and turn it into actionable metrics, and each of them uses dissimilar factors to decide sentiment. Alternative.me, for case, scrapes information from trading volumes, Google Trends, and social media amid other indicators.

Remember that sentiment is but one indicator of the next marketplace movements.

When crafting your cryptocurrency strategy, cross-reference different indicators from several sources. E’er use logic over emotions.

fifty. Yous Don’t Earn Involvement From Your Crypto

You cannot earn interest from cryptocurrencies equally y’all do with your bank account, but
in that location are ways to abound your bags simply by holding.

There are three ways to earn interest on your cryptocurrencies:

1. Stake your coins.
   If you are holding Proof-of-Stake (PoS) coins, hold them in the official wallet, turn on staking, and you lot will brainstorm earning stake rewards, much like interest in a bank business relationship.
2. Margin Lending.
   Exchanges which offer margin trading allow users to lend coins for a percentage return. This may exist pocket-size, say 1-ii% a calendar month, just it tin can add up! Fifty-fifty at 1% a month, that comes to 12% a year every bit a prophylactic return. Beats a 0.ii% interest bank account.
3. Lending Platforms.
   Nexo is one example of a lending platform that can state you a minimum of ~half-dozen% a year. For minimal adventure, non a bad bargain.

51. BONUS: You But Invest in Cryptocurrencies

This last error comes equally a surprise, but why invest just in cryptocurrencies? It’s wise to diversify your portfolio not simply amid cryptocurrencies, merely stocks, bonds, and other avails equally well then y’all should bank check the 50/25/25 dominion.

The stock market place is indeed a safer bet than crypto, then
if you want to be conservative, put say xv% of your investment funds into crypto.
If you hold safe stocks and bonds with the remaining coin, so you should be pretty condom.

Disclaimer:
nosotros do not know your financial state of affairs, nor are we fiscal advisors.

The globe is your oyster, so don’t be afraid to invest in unlike markets and niches.

—

Well, you made information technology to the end, congratulations nosotros hope that y’all learned something about a crypto investment strategy that can suit you!

Although at that place are plenty of mistakes to avoid, most of them are common sense and require no memorization. Simply being aware of them should exist enough to make yous think of and improve your cryptocurrency investment strategy.

Which mistake from the list prevents yous from making more profits? Which 1 do you make again and again? Do you brand mistakes that aren’t listed? Let me know in the comments!

Lastly, hither are more than resources you might like:

• The 17 Crypto Tools Checklist For Successful Investors
• The five Best Sites To Earn Interest On Bitcoin
• The 24 Best Places To Spend Bitcoin
• The ten All-time Cryptocurrencies To Invest In Right At present
• Farther reading on How to Invest in Crypto From Home