Crypto currencies hitting whole time highs just after Tesla and Elan Musk are tweeting about the coins, and people are making countless stories about that. People are getting more interested and investing than ever before, but just because they are interested, that does not mean they are prepared to invest. People often make many mistakes while investing or trading in crypto, and some of those mistakes may result in something big, and people may have to bear the consequences.
Mistakes people often make
Buying high selling low
It is a common mistake that people make. Crypto currency is extremely volatile that offers a large gain but always comes with high risk. It is not possible to time the market perfectly while buying or selling the currency so that you can maximize your profit by minimizing the game. The two main mistakes people make are fear of missing out, Which is FOMO and the other one is fear, uncertainty, and doubt, which is FUD or, you can say, selling at a low price.
Following one-sided opinions
Before investing, a person needs to ask himself whether he got the idea of crypto what the source of information was. Was it a friend on YouTube or Twitter? Is the source that you have chosen it’s reliable? These are the main things that a person needs to ask themselves because if you follow only one side of opinion, then you may not get a better picture of the market situation, or you will not be able to diversify your thinking. If this happens, you may not be able to get better profits or anything from then best met because we do not even know the market situations, and you’re not even sure whether you are interested in trading.
Not having a plan
People often just start reading without even making any strategy or planning anything. Making a plan on having a plan is important before investing because what will you do if something happens, like what will you do when prices get down? You cannot sell currency out of fear because the prices are down. You need to make a plan whether in which currency you want to invest, what will you do if something happens, what will you do if the market fluctuates or anything. Having a plan is important for the person, and if you do not have that, it can be a big mistake.
Does not have any idea about basic market analysis
Most people investing in crypto do not even have any idea about basic market analysis; they are all just doing it because someone has asked them to do it or because other people are doing it. A person should never invest in the market if they do not know it. If you make a single mistake, you will lose everything you have, so think before you make any decision.