Don't Make These 5 Crypto Mistakes

We hear about crypto a lot these days.

No doubt about it, crypto is the future.

Just look at the success stories on the internet from people as young as 17 (Erik Finman) to older retirees (Terry Proud) who have hit the big time using crypto.

However, these people are the lucky ones because their success came accidentally.

For every winner, you can bet there's multiple people who've lost. If you are talking about a small investment, then it's ok, but if you are looking at tens of thousands of dollars, then you just cannot rely on luck alone, you need a solid plan.

The first thing is to really understand how the crypto market works.

Who do you learn from? It is always best to learn from those who have done it, and made mistakes. This way, you can learn from their experience in order to avoid making the same mistakes.

Let's take a look at some mistakes that people make.

Mistake 1: Fear of missing out

So many people get in on something out of FOMO (fear of missing out). This is not a good strategy because by the time you hear about something hot, chances are, it is already at its peak, and so you will be buying at the high point. As a result, you will be buying high now and forced to sell low later.

Mistake 2: Misleading sources of information

Who do you listen to these days? There's just too many people with too many opinions. Different people may have different agendas, so be careful.

The best advice is to listen to multiple sources in order to form a balanced picture of the market situation.

Mistake 3: No plan

This is a big one. Most people have no plan. Think about your goal. Do you want to build wealth? Or do you want immediate cash flow? Are you doing long term or short term investing? As someone once said, if you fail to plan, you plan to fail...

Mistake 4: All eggs in one basket

Never bet everything on one dodgy coin. Always diversify. It is fine to have some risky alt coins that will generate greater return, but also have long term safe 'blue chip' coins like Bitcoin and Ethereum in your overall portfolio. This will help offset the loss from one coin performing extremely poorly.

Mistake 5: Investing money you cannot afford

This is obvious but bears repeating. You should never invest an amount unless you can afford to lose it all.

Crypto is volatile and scary so if you do not know what you are doing, then you can indeed lose it all.

Indeed, that is the best attitude you can adopt, to treat it as if you've already lost it all. This is a neat psychological trick because then you will not feel the burden of putting money on the line. Then, any return you get out of it is 'bonus' money, since in your mind, you've already lost it anyway!

This article is not intended to scare anyone away out of delving into crypto but to let you gauge the risks involved.

That said, with the right approach, you can harness the incredible crypto opportunity to build life-changing wealth for you and your families.