Date: 2022-01-03 21:48:08
We NEED to talk about the 7.5 WORST crypto mistakes to avoid, as in 2022 crypto investing is more popular than the stock market and lots of beginners are getting involved and investing for the first time.
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Mistake Number 1: Believing False Promises
Because crypto is such a new thing, it means the market isn’t regulated like with stocks and shares.
A YouTuber called Biahezia recently proved this by creating a crypto called ‘Fluffy Coin’. He showcases how simple it is to make a meme coin, and use social media to pump up the price into the millions.
Mistake Number 2: Investing More Than You Can Afford To Lose
Typically, the higher the risk, the higher the reward, so you don’t actually need to pile every last penny you have into a random coin to get your one way ticket to the moon. It’s all about finding that sweet spot between risk and reward!
Mistake Number 3: Buying High and Selling Low
It’s very common in the Crypto world to see huge bull runs driving the price of a Crypto coin far higher than average yearly stock market returns in just a SINGLE DAY.
The way I avoid this mistake is by following the same formula I have used for my entire investing life, and let me tell you, I’ve made a lot of money doing it. This is known as dollar cost averaging, essentially I’ll buy bitcoin and Ethereum no matter what the market is doing.
Mistake Number 4: Being Fooled By ‘Cheap’ Prices
Bitcoin currently has a market cap of $898,875,870,766 and a total supply of 18,914,968.00 Bitcoins.Whereas Doge has a market cap of $23,096,488,333 and a total supply of 132.67B coins.
So just because a coin appears cheap, it doesn’t necessarily mean that it’s going to be a good investment. DOGE will never be the same price as Bitcoin due to the extremely large total supply which is being increased by 5 Billion every year, whereas bitcoin is capped at 21 million coins.
Mistake Number 5: Investing Only in Crypto
Although I believe crypto is a huge opportunity, just imagine we wake up tomorrow and the market has hit rock bottom.
The easiest additional investments to consider are index funds and individual stocks. But, for some people, real estate could be an option.
Mistake Number 6: Using Leverage
If you aren’t careful, then you can actually lose far more than you invest by doing this… Just imagine, only investing $1,000 of your own money but waking up and being $7,000 in debt.
Because of this, I don’t feel like using margin is a smart move. If you still decide you want to use leverage, then I would just suggest making sure you fully understand the risks involved before you dive in.
Mistake Number 7: Not Storing Your Coins Correctly
It’s been said that it’s much more profitable to hack a crypto exchange than a bank vault these days. Therefore, it’s understandable why exchanges are often targeted by highly complex cyberattacks.
You need your own wallet and there are 2 different types. The first is called a hot wallet, these are connected to the internet and could be susceptible to online attacks — which could lead to stolen funds — but it does have benefits such as being faster and making it easier to trade or spend crypto.
The second is a cold wallet, which is how I currently store the majority of my crypto. This is typically not connected to the internet, so while it may be more secure, it’s less convenient.
Bonus Mistake Number 7.5: Sending your Money to the Wrong Wallet
Sending crypto between your wallets is a pretty scary process. I once sent over $100k worth of bitcoin, and I thought I’d made a mistake when typing out the wallet address.
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*Some of the links and other products that appear on this video are from companies which Mark Tilbury will earn an affiliate commission or referral bonus. The Info in this video is accurate as of the posting date. Some of the offers mentioned may no longer be available.