Right now we have more people investing in crypto than ever before, and most of those are low level investors. One thing which all new crypto investors should keep an eye out for, are the mistakes which have been made by others. This is something which experts like Robert Testagrossa have been discussing lately and they really do have a point. Because this is something new to most of us, there is a temptation just to jump in whilst they can. Avoiding commonly made mistakes however is critical in terms of the investment which you make. Here is what to avoid.
Avoiding The Exchange
The exchange offers live prices based on what people are selling at and what others are looking to buy at, these are the best prices which you can get on cryptocurrency. Unfortunately however those platforms which offer exchanges also sell at stock prices, and many think that this is the way to go. The prices direct from the platform however are usually so much higher than the exchange. They do this because the exchange looks scary and confusing, but the truth is that it is much simpler to understand than you realize.
Crypto is an incredibly volatile market and that is why you have to ensure that you are in it for the long haul and that you have a strong stomach for change and movement. What so many make the mistake of doing is selling when the prices dip, and that can result in a long term loss. The golden rule of investing is to buy on the way down and sell on the way up. This is why you have to stay strong when you see prices falling.
As much as there are some truly incredible products and projects out there, you are also going to find that there is a lot of trash coins in this market. It is for this reason that you have to be incredibly cautious about what you buy. The one way in which you can understand what to avoid is through research, something which so many fail to do. Research is not about listening to the comments on a crypto Twitter account, this is about looking into exactly what you are buying and understanding what the project is about.
If you are looking to buy an NFT for yourself then go ahead and buy what you like, but don’t make the mistake of thinking that all artwork is going to make you a millionaire. There are some great stories out there of people who have done this, but they are very much in the minority. Unfortunately however many are buying up huge amounts of NFTs, anticipating that they are going to make a killing at some stage. This is highly unlikely and it is why NFTs should be a personal choice rather than a financial one.
Have fun and be careful with your investments.