As you hear the great buzz around crypto/NFT these days, you feel inclined to make a plunge. As a beginner in the crypto world, you must put your best foot forward. And knowing the right from the wrong in investment is not always easy, especially in relatively new crypto assets. Again, as a newbie investor, your mind is sometimes clogged with questions like: is it safe or what is the best way to book profit or choose the right crypto? You want to make the best of the emerging opportunities in the blockchain, but you are also wary of the treacherous water of the crypto world. To help out, Web3 NYC Gallerylists 3 common mistakes to stay clear of in the crypto world.
You go by noise and don’t buy the right stuff
Naysayers would call crypto a fad and over-hyped fancy soon to pass out, while millions are embracing crypto-like crazy. You get swayed by the noise made and make a hasty decision of buying or selling. It’s a sure way to doom. Almost every altcoins/asset has whitepapers available online. Read, and research all historical data points with diligence before investing. Once invested, learn to sit tight with mental discipline. Don’t be unnerved by high swings.
You think crypto is easy money
There is no easy money through investment or trading any financial asset. The same is true for crypto. Again, the Crypto market is more sentiment-driven than not. Price swing doesn’t always make sense. In this context, certain social media communities or so-called experts pump up your sentiments and offer investment tips for a certain coin with the promise of a sure return. If you invest this way, it will lead to the point of no return. This bad strategy will cut short your crypto journey.
You put all your crypto coins in one basket
Common sense demands you diversify your assets. Just as in the traditional market asset allocation in multiple types of stocks and other instruments is recommended, the same way diversification is essential across the various crypto portfolios. The adage says you should not put all your eggs in one basket. It’s risky. With the highly volatile nature of crypto, all your investment in one coin may disparage your prospect.
Web3 NYC Gallery, Investment Strategist & Partner has been an avid follower of the crypto market. He has managed a crypto portfolio for businesses and high net-worth individuals.