The world of cryptocurrencies can be full of excitement, but it is also full of pitfalls, especially for beginners. Here are the top 5 mistakes newbies make, and how they can avoid them:
1. FOMO Buying:
Hoping onto the train of a coin just because it is pumping is risky. Prices often crash just as fast as they rise. Research before buying, don’t just chase green candles.
2. Ignoring Security:
Many newbies, even sometimes old users leave their assets on exchanges or use weak passwords, rendering them vulnerable to hackers. Use strong 2FAs, and also consider storing crypto in a hardware wallet.
3. Investing more than they can afford to Lose:
Cryptocurrency is volatile. Sudden drops can lead to panic selling. Only start by investing what you are comfortable with losing, never your rent money, or borrowing money for investments.
4. Falling for Scams:
Fake airdrops, phishing links, and pump-and-dump schemes are everywhere, so, always double-check URLs and never share your seed phrase with anyone.
5. Skipping the Basics:
Many beginners tend to skip learning about blockchain, tokenomics, or how wallets work before they decide to start trading or investing. Endeavor to educate yourself, as knowledge is your best asset in crypto.
Though, of course, everyone makes mistakes, but the key is to learn early and protect your capital. Start slow, stay smart, and don’t let too much hype guide your strategy.
Risk Warning: Investing in cryptocurrency is akin to being a venture capital investor. The cryptocurrency market is available worldwide 24 x 7 for trading with no market close or open times. Please do your own risk assessment when deciding how to invest in cryptocurrency and blockchain technology.
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