My Granny always said:
Your mistakes are like your legs, you'll not walk around without mistakes
I walked a lot in my life, and I did mistakes in a number that approximates BCH supply (but they will never reach 21 millions).
So the following list represent my biggest mistakes, which belong to the vast majority of crypto newbies. These mistakes regard above all crypto to fiat (dollars, etc) and fiat to crypto transactions.
1 - Big loss, sell everything
Let's imagine that you have a basket: bigger is the basket, more apples it contains. When the market drops, if you sell everything is like you throw away the basket to preserve apples. It could be a good choice for your portfolio now, but is not a good choice for your future portfolio. If you simply sold what you need and you keep the rest you'll save (part of) your portfolio now and you'll have a portfolio tomorrow. You'll still have a basket to collect apples. For a better solution go to point 3.
2 - Big gain, sell everything
The same thing as above, we have a more and more serious mistake in this case. If you simply sold (part of) what you earned and you keep the rest you'll increase your portfolio now and you'll have a strong portfolio tomorrow. Remember the apple basket.
3 - HODL is No Panic
Imagine that you landed in unknown planet, and you find a multitude of green aliens. You're alone. What will you do? You will scream and run away or you'll stay firm as a sequoia?
HODL is when you leave your cryptos where they are, without selling to fiat. HODL is a choice, sometimes a good choice, sometimes less, sometimes it's not a good choice. Usually HODL worked very well, so you can wait aliens first move, then you'll decide. If aliens are not slaughtering you it's better to wait. I hodled Feathercoins for 3 years, and they have more or less no value compared to my entry price. I'm still alive, as you can read.
4 - Big bet, all in 1
Beginners are very sensible to "my friend said":
A friend of mine said Dogecoin to the moon, bet all in
May be your friend is a very affordable person, and an expert trader. A friend of mine was who suggested me to buy Feathercoin (see above). But the great mistake comes before: why do you bet all for a single horse when you can bet for many horses, and most of these horses could win in some way?
Diversify your portfolio more than you can: in this way you can reduce your risk and you'll have more opportunities.
On the contrary if you bet all in 1 you're twice wrong: it's risky and gives you less opportunities.
5 - Big fat, invest everything
Investments on cryptocurrencies are risky because markets are volatile. Remember that the first rule in any financial investment is that more it's risky, less it must weight on your global portfolio. Always invest in cryptocurrencies what is healthy for your financial position, so never invest too much.
After this introduction there's a newbie dangerous behaviour. When the market is bullish he goes to her/his family:
Dear mom, sis, daddy, bro and granny, I could be rich in a few days, please help me
Big fat, invest everything. When the bulls are pulling your mind, the worst decisions knock to your door. Here there's an article that explains why bears are your best financial advisors.
6 - Great news, big investment
Elon says that he will invest 1 B$ in Bitcoin, Elon says that you can buy a Tesla paying with Bitcoin, Elon says that paying 1 bitcoin you'll fly to Mars in 2023.
These are important news, but when Elon tweets it's a little bit late for you.
So this is the moment to invest something more, and it's not the moment to make a big investment. A little, not too much.
7 - Low cost, big bag
The market is down, is it a special phase to buy? Yes, in general. No, in general.
The astonishing trend of most cryptocurrencies demonstrated in many years that if you buy low and you sell high you could earn a tank of money. Now that we reinvented the wheel let's consider these two factors:
you'll never know where the dip is;
you'll never know where the peak is.
If you're an expert trader (and you're not an expert trader because you're a newbie) you can predict short term dips and peaks. If you're an expert of blockchain technology you can predict big movements around new services and long term success of Cardano, Chainlink, BSC based services, BCH based NFT, etc. But you're a newbie, so you have to study for years to reach those levels.
Your best solution is to invest small amounts of money everytime you have some in your pocket, proportionally to your financial position. Always, in the dips and in the peaks. You'll have big positive surprises adopting this technique.
8 - Learn from 1 to 7 mistakes
If you forget only one of previous 7 points you could make again the same mistakes, many times.
-- Conclusions --
This article avoided to show other opportunities based on rewards, interests, staking and a so long list of financial tricks that would transform the life of newbie in a crypto holiday. Before you adopt these easy instruments you have to learn the 8 mistakes. Afterwards all other things will come.
Follow me on https://noise.cash/u/EnergyB0x.
Lead image regularly licensed by scop.io.
Well spoken , the 7 mistakes or let me say the 8 mistakes are usually made by both newbies and those that have been into crypto for long. If the instructions you stated are well followed one will surely be happy at the end of the long run