The 5 WORST Cryptocurrency Investing Mistakes to Avoid | News Today

the five worst cryptocurrency investing mistakes to avoid let's get into it so guys today we're going to be taking a look at the five worst cryptocurrency investing   mistakes that you'll want to avoid these are the common mistakes that beginners make all the time   

and that can completely blow their cryptocurrency portfolios out of the water so guys as we get into   this video if you find it useful and informative do go ahead and hit that like button for us   we both really do appreciate it and of course if you have to be new to the channel and you'd like   to stay up to date with the new cryptocurrencies the hidden gems the technical analysis and news   

then why not become a subscriber by subscribing you will be kept up to date with absolutely   everything we do here it's free you'll stay well informed so why not and chris is there   anything else that you would like to add before we jump on down and get straight into these   five worst cryptocurrency investing mistakes yeah i mean there's there's a few things that i would   

ask actually if you remember any mistakes that you made and we've not covered them in this video do   comment below i think that'd be really helpful for anybody new in the in the crypto space i   think it's uh really important that we support new people in in the you know the the investing   uh side of things for for crypto because it's it's healthy for for for adoption i think there's   

lots of people that get burnt when they're new in crypto and that is not a good thing because it it   leaves a sour taste in people's mouths and that word gets spread so i think anything we can do   to support people uh you know the new to crypto is really important so do leave a comment below  

and also if i can ask that you share this video and just get out there so any of your social   media platforms twitter facebook whatever share this video help support the adoption of crypto i   think it's really important fantastic right let's jump on down 

and get right on into it let's do it   this video is sponsored by crypto.com the world's fastest growing crypto app with crypto.com you can   buy that fear and sell your cryptocurrency you can of course earn a juicy return on your investment   

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and you will get a 25 sign up bonus the first mistake that beginners   coming into the crypto space tend to make is not doing their research this can be in   the form of maybe listening to one two three or maybe even four different influences and   

not actually doing some solid research themselves this is a common mistake that you tend to find   that these beginners come into the crypto space after listening or watching some youtube videos   and 

one of these mistakes might be that they're actually paying attention to an influencer who   is shilling a particular kind of coin that's incredibly low value so it has a lots of potential   to the upside at least that's how it is pitched so it's important that when you actually start   digging into these cryptocurrencies that you do a very good research on not only the price   elements of a cryptocurrency the tokenomics the white paper the team and 

their actual use cases   and if you do these things properly this research can become a true foundation to a good solid   investment without that research you tend to find that you're investing in things that genuinely   have a very little value and 

unfortunately there are many of them in this space we talk about   this quite frequently on our live streams that there are over 10 000 cryptocurrencies today and   some of them were only ever created to part you with your hard-earned money   so research is absolutely crucial 

and a part of that research absolutely has to be understanding   what the cryptocurrency is up to what it plans to do in the future what its use case is who are   the team behind the cryptocurrency the value of it today 

and the potential value of it in five   to ten years from now these are the foundation levels of good solid research that will set you   on the right path to investing in cryptocurrency so number two on the list is not diversifying your   portfolio so we again this is one we talk about an awful lot on live streams and in videos 

and   for beginners it's an easy mistake or an easy trap particularly with the tribalism within the crypto   space so basically what i mean by this is you know you basically putting all your eggs in one basket   or betting i guess is another way to frame it that that one particular cryptocurrency is going to be   a success 

and it's going to make you the 10x or the 100x or whatever your   strategy is i guess so diversifying is really important and we talk about this on the show   all the time you know you don't want to be putting your money all in one project it's really   important to diversify so obviously number one on our list was doing your research so research maybe   three possibly four projects 

and if you've got a thousand dollars to invest in crypto   you would be better off maybe just putting i don't know 40 in one and then just splitting   it out evenly across the other three for example at least you're hedging your bets that way third   on our list has to be trying to use leverage this unfortunately is a poor strategy for   pretty much all beginners this is something that's really only better for advanced traders   

and even me and chris we tend to avoid leverage at all risks and ultimately we find this thing   a little bit too dangerous and a little bit um you know out there for for beginners so leverage   is basically using borrowed money to invest in cryptocurrencies that you have to pay back later   um 

and two really common ways um to do this is basically to increase your exposure for shorting   uh if you think the price of a cryptocurrency is likely to go down and likewise to purchase   cryptocurrency if you think the price of a cryptocurrency is going to go up this means that   you can multiply the factors of gains by let's say 10 to 100 times but also if you get it wrong   you can multiply your losses by 10 to 100 times as well 

and this is quite a common mistake that   beginners tend to do is they get into leverage thinking that they can put a thousand dollars in   play with a hundred thousand and they think that things are going up or going down according to   their bets 

and i do use the word bets because i feel that losing leverage is a gambling mentality   you are basically gambling that a cryptocurrency is either going to go up or a cryptocurrency is   going to go down 

and you can multiply your gains unfortunately for beginners uh if they dabble into   this this could leave them uh without their investment at all as we've seen recently with   the bitcoin crash a lot of people who were using leverage retail investors that were using leverage   specifically were liquidated during bitcoin's crash the exchanges had notorious for crashing   during these kind of uh really difficult times within the crypto market 

and ultimately very few   people were able to log on exit their positions before getting liquidated and we've seen this time   and time and time again so the best kind of thing really for beginners in this space is to avoid   using leverage and ultimately if you cannot afford to invest in a cryptocurrency 

and you're relying   on leverage then it probably isn't something for you so number four on the list nick has to be   buying more than you can afford to lose now we again another one we talk about on live streams   

and videos an awful lot is not over extending yourself which is basically the same thing   so if you're new in the space the chances are you're gonna make mistakes be it sending crypto   to the wrong wallet address for example or just investing in one of these um coins that you know   

hasn't really got any use case if you you new to the space it's easy to to sort of fomo into some   of these projects uh with the fear of missing out so we always say it's really important to   have a strategy when in investing in in crypto so you know one of those would be the you know for   myself i don't just invest in crypto i also invest in the metal market 

and property as well uh but   you know just keeping it on to to the crypto side of things it's it's easy to to lose money if you   you don't know what you're doing right and not investing in the right projects with the right   fundamentals the use case team 

and everything that we've covered earlier when doing your research   but you don't want to put all of your money in into crypto it's easy to get   carried away particularly in a ball cycle wherever if it's going up 

and we see this   regularly that people are putting their rent money into a particular project   thinking five days later it's you know it's gonna continue to go up and then they're gonna have a   little bit more money and pay their rent and then have a little bit of extra cash left over   unfortunately that's highly risky 

and one of the things to avoid if you're new in this space   and last on the list guys has to be exit strategy 

and specifically making your exit strategy before   purchasing any cryptocurrencies before any assets uh particularly a digital coin without having an   exit plan could be a disaster you must have your stop losses in place a mental framework   planned in advance in order to accomplish your primary objectives you cannot let those losses  

 mount up if the market continues to get tougher exit strategies really do help mitigate against   those extreme losses on the on the other hand an extra strategy is always key even if you are   winning uh your bet with crypto currencies investors who don't have a deep knowledge   

of market psychology could also lose their money without knowing it if they do not know how to sell   or have a good exit strategy in advance so due to you know expectations of further price growth or   just because they think they can get a little bit more by hanging on a little bit longer or there's   

going to be another bounce to the upside these are all things that could lead to significant   losses of your gains so having this exit strategy really figured out before you actually get into a   cryptocurrency is absolutely key this is something that we do quite a bit for our members section   where we talk about cryptocurrencies that we are invested in 

and where we think our exit strategies   are likely to be on our exit points for specific kind of coins this is the kind of strategy   that you should be thinking about it should be implementing ahead of time this will allow you   to exit cleanly and smoothly under both scenarios of a an extreme loss scenario or also setting on   the way up 

and without actually fear of actually losing those gains and it's absolutely crucial   so those are our five mistakes that we think that a lot of beginners do actually make in   this space and things to potentially avoid in order to make your crypto experience   much more efficient 

and you know it's less stressful chris what do you what do you think   yeah hopefully that that really helps people that are new in the space i think it's really important   that we do these types of videos 

and again i think it's really important that if we've missed any   um mistakes that people commonly make or you made when you first entered the space comment below let   people know because i think having that is just going to be supportive of new people coming in   this space 

and i've talked about this quite a lot on on the the channel live streams videos twitter   facebook and tick tock 

and all these places right that it's it's not good for adoption if people   that are new in the space get burnt really important that people can learn from people   like ourselves with experience because i think that's healthy for adoption in this space which   is healthy for everybody's investments absolutely i think it's crucial that these new investors who   are looking to potentially get into cryptocurrency have a good understanding of the common mistakes   that people often make 

and if we can mitigate some of those then that would be fantastic guys   if you found this video useful and informative do go ahead and hit that like button we both   really appreciate it and of course if you happen to be new to the channel 

and you'd like to stay up   to date with the new cryptocurrencies the hidden gems the technical analysis 

and news then why not   become a subscriber by subscribing you'll be kept up to date with absolutely everything we do here   it is free you'll stay well informed so why not with that said done and out of the way we   hope you have a fantastic day guys and we'll catch you all in the next one yeah take care you