FIVE Common MISTAKES That Prevent SUCCESS in Crypto!
Necessary Changes To Make It Work.
The bear market can last for a while.
We all hope the pain ends quickly and perhaps by the end of the year, our suffering will end, although history suggests a bear market can last a while longer than that.
We anticipate the fourth Bitcoin halving in 2024 but also know that the crypto landscape will be diverse as trends always change, new cryptocurrencies appear, and the established ones deliver new developments and extensive utility.
Perhaps NFTs will not shine this time. With the advance of CBDCs, cryptocurrencies focused on payment and privacy factors like Monero, ZCash, and Bitcoin Cash will prevail.
While we can only guess how the landscape will change, we should not repeat common mistakes we made previously.
I present the top mistakes we make when investing in cryptocurrencies. Mistakes that limit our profitability and reduce our chances of securing significant gains.
1. Gambling Instead Of Investing
Many will begin trading, thinking it’s an effortless way to make money fast.
This market presents rare opportunities but gambling it all with leverage cripples our chances.
Trading won’t help unless perhaps an experienced trader executes a plan perfectly without messing up in the process.
I’ve previously explained how most traders lose money and why trading reduces our chances and should not be considered the best approach.
Also Read: How Crypto Derivatives Exchanges Destroy Profitability
Considering crypto derivatives and perpetual futures markets, I explain their structure in this article: Perpetual And Cash Settled Futures In the Crypto Market
2. Getting Caught In FOMO (and FUD)
The main reason people earn just peanuts or even manage to lose money in crypto is FOMO (Fear Of Missing Out).
If you skipped buying at the entry point, better buy less and reduce the risk than going all-in at the top.
There is an easy way to trade. Buy when prices drop so much that most are considering quitting. Contrarian investing works well in cryptocurrency.
It’s not easy to define the exact moment to buy or sell, but there are always signs of extreme FOMO (or FUD on the opposite side) that we must learn to avoid.
Of course, conditions differ, but are we all not feeling we should get in only after the prices have already parabolically exploded to the moon?
Hype and FOMO are terrible indicators. It translates that investors who bought early are getting out already.
Follow the smart money instead.
3. Following The Advice of Twitter & Youtube Crypto Influencers or Celebrities
Image by “geralt” on Pixabay
The more followers an influencer has, the less likely they will help you understand investing or cryptocurrency. Most likely, these influencers will sell you scam cryptos where developers wait to dump billions of tokens right after you buy.
A 99% loss is guaranteed if you follow celebrities.
Traders, analysts, and investing experts, don’t waste your time with anyone. The value you should expect from all of them is negative.
Even when they offer entertainment value, they will deceive their audience and lead you to the worst financial decisions.
Remember all those popular crypto-personalities explaining with authority how Terra Luna was the GOAT or how they even promoted this scheme as it was imploding. Or maybe consider how many of these crypto gurus invited you to join custodian networks like Celsius that today file for bankruptcy.
All those that glorified currently insolvent crypto venture capital funds glorifying individuals like Zhu Su.
Remember that the voice of reason is not loud but suppressed by a social media frenzy that promotes only charlatans and clowns as influencers.
Reddit, Twitter, and any social media that will become the next crypto hot spot usually contain limited value when investing.
Erase Coindesk, Cointelegraph, and Decrypt. All of these contain biased and non-credible journalists that promote their bags without any sense of honesty.
Where to Focus
BTC is 100% speculation. There is nothing else in Bitcoin BTC today, so if you want to be part of it, be my guest.
There are fundamentals and principles, but not in the Blockstream-led Bitcoin.
For any other project, a researcher/investor can follow the communication channels such as the official website, telegram, Twitter, and Discord.
Every project has representatives answering questions and explaining their purpose. Most of the time, developers will be there to explain.
4. Don’t HODL But SODL (When The Time Is Right)
Image by “JanBaby” on Pixabay
Planning to HODL is a destructive mistake.
You will know when to sell, though. Perhaps you skipped every sign last time. This time, remember to sell when your hairdresser tells you about Ethereum and how it will take over the world.
Cause this will be the time to sell.
Nobody can find the exact bottom or top. Yet for some unclear reason, everyone is pretty capable of buying the exact top and selling at the exact bottom.
Nobody should invest aiming to HODL forever. The losses are too much to bear at 70–80% (or more). Even if you didn’t buy the top, you still didn’t realize any gains by hodling.
The best strategy is to buy cryptocurrencies containing disruptive potential and revolutionary features that can become highly competitive with their established finance counterparts. Cryptocurrencies with money features, BUT with permissionless nature, not those controlled by devs or a team. Permissionless decentralized cryptocurrencies will flourish.
We place our bets depending on conditions and situations.
The higher the number goes the risk factor is rising to make it less likely for investors to keep buying.
Even the founder of the HODL meme sold his BTC in 2017.
Wait for the crypto investment to mature but never sell everything at once. You don’t want to skip profit as the market can act irrationally for longer than you think.
5. Repeating The Same Mistakes
Image by “chenspec” on Pixabay
I don’t want to revisit my moments of crypto-stupidity or bad luck (call it what you will), still, we got to stop repeating them.
We are supposed to follow a plan without interruptions and modifications
Recognize and analyze your mistakes, and don’t repeat them.
It can be investing in shady projects, coin-doublers, Ponzi and get-rich-quick schemes, fancy advertisements luring you to scams, or perhaps buying tokens following advice from r/WallStreetBets comments.
You bought late and suffered a severe bear market that lasted perhaps one or maybe even two years.
Frankly, I skipped too many life-changing opportunities because of immature investing habits, fear, bad timing, and not realizing hype can last way longer than anyone expects.
I don’t know where to begin with every random action I was taking, especially in 2017.
I still make mistakes, but I’m more strict with my plan. Research and experience increase profits, and eventually, the proper decisions get rewarded.
In Conclusion
A long-term trading strategy aiming to exploit the market cycles and the Bitcoin (BTC) halvings should be the goal, as explained here:
To summarize, by eradicating these five mistakes, profitability will rise significantly.
We are still far from the next halving of BTC that will most probably initiate a new bull run for cryptocurrencies. Right now, everyone is on vacation, while we are halfway through the bear market.
Everyone will be back, though, don’t be deceived by anyone claiming that this market is dead and moving to zero.
Buy and hodl with DCA during the bust phase, and sell in a reverse approach as the market enters a new bull run.
I’ve mentioned some of the top reasons hindering our success in the cryptocurrency markets. The key to maximize profits without risking too much.
Also Read:
Posting on:
● read.cash ● noise.cash ● Medium ● Hive ● Steemit ●Vocal
● Minds ● Publish0x ● Twitter ●Reddit
Copyright Disclaimer:
Material published in this content, is used for entertainment and educational purposes and falls within the guidelines of fair use. No copyright infringement intended. If you are, or represent, the copyright owner of images used in this article, and have an issue with the use of said material, please notify me.
Don't forget to Subscribe and Like if you enjoyed this article!
Thank you for this valuable information. When starting to invest in the crypto world we usually get carried away by the FOMO or the fad of the moment.