Everybody makes mistakes, but only a few can destroy their career in just five ways. You could be next if you’re willing to commit to any of these inimical methods we’re about to discuss. The problem is these downfalls are well disguised under alluring promises, so you might be coasting on catastrophe without knowing it.
Cryptocurrency is one of those things that fall victim to their own potential. We can look at bitcoin and see its eternal struggle with value. Yet, investors flock to it like it’s the last bus in town. For new traders, it’s a conflicting concept and conflicts often lead to bad decisions. And the desire to prevent making bad decisions might have led you here.
Navigating the crypto minefield can be a daunting task for most of us even though some people simply prefer the pain. If you’re not one of those people, this article will show you what not to do with your investments. But if you’d rather play with fire, instead, well, here are five more ways to do so properly.
Put All Your Money in Crypto
If you’ve ever met that one guy who likes to say, “all my money is tied up right now,” he’s definitely committed the first mistake on this list.
In general, investing in something with more than you can afford is a bad idea. So, investing all you have in something as young and fickle as cryptocurrency is so much worse. It’s not easy money even as it has changed many lives. When Satoshi created bitcoin he intended to keep transactions safe, not to make people rich. If you want to ruin your crypto career, this is one of the quickest ways to do it.
Of course, there are exceptions to this, such as Tim Westergen who spent every single dime he had and more to give us Pandora. Or James Dyson who sold his house three times and incurred over $4 million in debt just to make a vacuum. The thing is, people like them are enthralled by their vision and also extremely lucky. If you only have one of those two things, forget about it and invest what you can afford to lose.
Choose the First Exchange You See
They say the ones who hurt you most are those you trust. Picking the right platform to tie your money to is the first step in your crypto journey, and also the most important.
This comes down to doing your own research. Many people jump right into whatever exchange they see, thinking it wouldn’t matter as long as it works. Wrong.
The market is saturated with crypto exchanges these days and a majority of them carry a different agenda than what you have in mind. One of the glaring patterns of behaviors is how much they promise investors. Some of them even guarantee profits. The more “benefits” they offer, the more likely they’d provide the opposite. If you want to ruin your crypto career with as little effort as possible, put your money in one of these exchanges.
Legitimate platforms don’t need to shower you with promotions or fancy ads. They let their results speak for themselves. If you want to get the most out of your investment, try to go out of your way to gather data and any relevant information about the exchange you plan to use.
Buy All Kinds of Different Coins/Tokens
When your financial advisor says to diversify your investments, he probably didn’t mean buy every coin on the market.
While it’s good to have options, buying a lot of coins and watching them is just doing more work for less gains. The profit you get from playing one coin correctly could exceed the rest of your collection. Not to mention it can be overwhelming keeping track of all those charts, especially for beginners. In most cases, they’d end up losing money for spreading it to too many places. If you want to ruin your crypto career in a slow and painful way, this would be the best bet.
You don’t have to buy a coin just because it’s doing well. Focus on what’s at hand and make the most of it, first.
Buy Exotic Crypto/ICOs
The only thing worse than buying too many coins is buying unknown, random ones. Unknown here are the ones without data, usually because they’re brand new and have no earning records. Most of these use the same copy-and-pasted code templates of established coins. Whoever created them used a fancy name and slapped on an ERC-20 to make them look legitimate.
Since new coins can often go up in price, the historical chart gives you little to no information. What happens next is the creator removes all liquidity along with investors’ money and disappears. This is also known as a rug pull. If you want to ruin your crypto career while making someone else rich at the same time, this is the way to go.
Strive to Ride the Wave
Riding the wave refers to sitting on an asset when it’s at an all-time high. In theory, it’s not exactly a bad thing. However, you can only ride the wave when you already owned the coin before its ascent. In other words, if you didn’t buy the coin when it was at one of its lows, consider your budget should you try to catch it at its highs..
This is one of the most common mistakes among new traders. They want to be part of the mile-high club so they buy into the hype. Most did so due to fear of missing out - the coin could continue to rise and the more they wait, the more money they could lose. The problem with that is they never lost any money until they decided to buy the coin!
If you want to ruin your crypto career in a brief moment of glory, follow the hype and ride the wave.
If you’ve made it to the end of the article, chances are your crypto career is still intact. Keep it that way by avoiding making the mistakes mentioned above. Remember, investing is a long game so patience is already half the battle.
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