As of September 2021, there was over $95 million invested into the crypto market. And many of those investors are getting thousands of dollars of returns on their original investment. But, of course, many others lost money due to a poor crypto investment strategy.
While getting rich with cryptocurrency is possible, there are several cryptocurrency buying mistakes that can make you lose all of your money. That’s why today, we’ve prepared a list of mistakes you should avoid. So, be sure to keep this post bookmarked for future reference!
1. Buying Without Researching
Perhaps one of the worst cryptocurrency buying mistakes is not doing your research. Instead, most people simply follow the latest Twitter trend and end up losing everything they invested. So, before buying any crypto coin, research it!
2. Buying High
As you may know, the price of crypto coins is constantly fluctuating. So, be sure to check if the crypto coin you’re planning to buy is at an all-time high. If it is, then it would be best to wait until it lowers since they always do.
3. Putting Your Investments Into One Coin
Another huge buying mistake is only investing in one crypto coin. There are many options for cryptocurrencies, so be sure to look at at least four coins. A good tip is to put 50 percent of your investment into a stable coin (Bitcoin or Etherium) and the rest to smaller coins. You can also visit for receive bitcoin payments.
4. Purchasing Cryptocurrency From an Obscure Site
There are plenty of ads online that offer Bitcoin and other cryptocurrencies at a super low price. But, don’t fall into the trap of buying it from these sites! Instead, be sure to use exchange services that offer secure crypto transactions.
5. Not Keeping Your Crypto in a Wallet
One of the most common cryptocurrency buying mistakes is not keeping your investment in a wallet. Nowadays, hackers can get into any crypto exchange service and take your investments. Fortunately, a Cryptocurrency Wallet will keep your investments safe since it won’t be on the internet but in a physical wallet.
6. Not Knowing What Type of Investor You Are
There are two types of crypto investors: HODLers and traders. Someone who HODLs (Hold on to Dear Life) is the type of investor in it for the long run, meaning they will not sell their cryptocurrency for months or even years. On the other hand, a trader will trade (sell) their crypto as soon as they see a good return on investment.
Don’t Make These Cryptocurrency Buying Mistakes!
Now you know how to avoid these cryptocurrency buying mistakes. Of course, the crypto market is extremely volatile, so you can expect to make a mistake at some point. What’s important is that you learn from it and keep on going! What mistakes have you made while investing? Let us know in the comment section below! And if you want to read more informative topics related to finance, be sure to check out our other articles!