Worst Investing Mistakes
First investing mistake, I want to mention is speculating. This is a very common mistake especially if you are a beginner in the stock market. You have to consider your investments based on statistics and numbers not your emotions. You must understand the difference between speculation and investing. Whole point of investing is minimizing your risk while maximizing as much return as possible at the same time.
Too much risk for beginning
The second mistake is investing money that you cannot afford to lose. Investing money that you cannot afford to lose is a very common and terrible investing mistake that so many beginners make. You should never make this investing mistake. You should not be investing the money that you need for next month’s expenses such as paying your bills or your rent. So many beginners think that they can double money for the next month and take too much risk at first. However, do not forget that you should not have high expectations for especially the first 2-3 months. If you have credit card debt you should focus on paying that before starting investing in the stock market. Do not put yourself in a stressful position about money.
Bad Coin Management
If you are going to hold your crypto investments for a long time period, just store it offline and away from the exchanges. You can find a good exchange with a solid track record, but you can never fully guarantee the security of your funds on an exchange. Your exchange could get hacked like so many people. Holding your crypto offline in a software wallet is usually considered as safe. Storing that in the hardware wallet will be safer. Because they are not connected to the Internet.
Buy high sell low
This is the exact opposite of what we should do in the stock market. All we need to buy low and sell high. But at the beginning people often look at the charts, watch the price of cryptocurrency, and think that is the time to buy. Then, the next day suddenly the price is falling. There are so many investors who are new to crypto, get scared because of the pullbacks, sell it, and lose money. You can use dollar cost averaging to try to reduce your risks.
Trusting People Too Much
People who have YouTube channels or blogs, who are telling you to buy this stock right now or sell this now, do not trust them. You have to be very careful about investing and wrong experts. Even if you see one of the best investors or experts going to buy something, you should not have to do the same thing just because he/ she is doing the same thing. You have to be sure that you know the logic behind it and investigate enough then just follow your steps. There can be some fake experts or investors trying to sell you some type of programs, do not trust them. Do not this investing mistake, do your research yourself.
Investing Without a Plan
This is the most fundamental investing mistake that newbies in crypto make. First you have to know how you want to achieve your goals. People mostly want to learn investing just to make money. However, you must be objective and know a strategy before you start. You need to establish your goals by asking yourself what you would like to achieve. Your goals and decisions should be developed in accordance with your risk tolerance. If you are looking to take on more risk, you can focus on a higher wait towards altcoins.