Top 5 Mistakes People Make in the Cryptocurrency World
Every day of our lives like they always say, we will keep learning and learning. Sometimes we learn positively and sometimes we learn negatively. Not only that, I have come to discover that also sometimes, our learning might actually come from something we did good and sometimes something's we do wrong which we are bound to face consequences.
I remember 1-2 years ago when I joined the crypto world and fast tracking now to this present age right now. After looking back for some years and some of the mistakes I have commited and made along my crypto journey, today I decided it is necessary that I share with yoy some of my ideas and what I have learnt so far.
The world of crypto is really wide and fast that sometimes we don't actually appreciate or let me say recognize that it needs careful attention to be able to understand it at least to an extent that works for you. There are people who say you can actually understand the crypto world fully but I doubt it because truth be told, the world of crypto is really wide and fast I must actually confess.
Like I said earlier, been introduced to the crypto world two years ago and looking at some mistakes I have made most especially in the decision I have taken along the journey, some due to ignorance and while some due to wrong perception about how the world works, I will be sharing with you some of them and hoping you will learn from them.
(1). The Illusion of Instant Wealth.
I will say this is the first mistakes I have seen a whole lot of people make when joining crypto which at the very starting point also I was guilty of that. The illusion of instant wealth. The world of crypto was actually picture to me to look like that at first. I have this wrong mindset that when I enter the crypto world, I will be a millionaire in few months. Well even though it works for some as some people were actually lucky that their first few months in the crypto world was able to make it financially so big.
Some might be due to the trading aspect or probably some of the airdrop hunting they participate in and many more. But trust me this wrong illusion I actually have affected me for a long period of time in my journey on this crypto world. Because I was desperate to make it big, I begin to make some wrong financial decisions which at the end of the day lead me to regrets instead of happy ending. That is the first mistake I actually made.
(2). Ignoring Fundamental Analysis
I will like to talk about this one in regards to trading. Actually I have come to discover that things were not actually moving as it actually should, I begin to explore the trading journey. The first mistake I will say I actually made was for me to ignore fundamental analysis. When I talk about the fundamentals analysis, I mean understanding the real world of crypto and the project backing up that token before actually investing in.
There are some tokens I bought with my hard earned money then because I actually want to make some return but unknown to me, I know little about the projects backing up the particular coin I bought. At the end of the day, I was forced to run into loss instead of profit all bevause I actually ignore the fundamental analysis. Ignoring the fundamentals analysis is one of the major and popular mistakes a lot of crypto traders made out there and which ends in tears.
(3). Overlooking Security Measures
This one is really getting popular back then but I guess now people's eyes are beginning to get opened to see the reality of seeing the importance of it. Some people actually overlook the security measures and that includes their keys, the exchanges which their funds are into and many more. At the end of the day, they are actually forced to lose out on their funds.
I have heard about people who lost their funds I mean huge funds and some lose out on their account on some platforms and even accounts take for example Steemit. If we should actually trace back one of the causes, you will actually agree with me that it is because they actually overlooked the needed security measures they should actually have to pay careful attention to. At the end of the day, they need to deal with the repercussions of it.
(4). Lack of Diversification
.jpeg)
This post will not actually be complete without me talking about these popular mistakes a lot of us make in the crypto world. I was once guilty of these also and it really makes me want to end in regrets. Like the popular saying that don't put all your eggs in one basket, there are some people in the crypto world which actually end up putting all their eggs in one basket. It is really a very terrible thing for you to do if you will be putting all your investment in just one project or coin.
So dangerous because you don't know the uncertainty of the future. Something might end up happening in the project and make you use out your funds. Instead of losing all your money, why not diversify so that you will be at the safer place and make sure that you are not losing out on all. The lack of diversification by many people in the crypto world has really made them end up in regrets which they didn't actually plan for. It is really a terrible thing actually. Very terrible I must confess which must be avoided.
(5). Falling for Ponzi Scheme
I will round up by talking about this Ponzi scheme. In Nigeria the country I come from, we actually suffer from a lot of Ponzi schemes and many people fall for it in the crypto world actually which I will say might be out of desperation just to make it so quick and rich. At the end of the day, they end up making wrong decisions.
.jpeg)
One of the ways to actually know the Ponzi schemes is they offer you crazy returns like kind of crazy ROI in weeks or months. That is really outrageous. That's one of the mistakes a lot of people fall for in the crypto world.
There are quite a number of mistakes I can continue to mention over and over again but I will actually love to stop here. So many wrong decisions that I have made in the past which I am still regretting till now and how I wish I have the power to go back to the past to make some corrections. But well that's how life is, we keep learning and learning day by day. Out of my experience, I have bought this post for you today and am hoping that you will not make the same wrong decisions again.
The mistakes mentioned are the mistakes that most of the investors make and because of which they lose money.
Yea you are right. There are a lot of people who make those wrong mistakes and at the long way they lose a whole lot of money because of that. It is not easy trying to cope
https://twitter.com/WayShola84156/status/1787875357577658825?t=-syT6CmmqvZWLJXbhjMNDg&s=19
Sundar presented a post. In fact, everyone makes such mistakes in the crypto market. But those who have studied more about crypto are less likely to make mistakes.
To be honest, I often make these 5 mistakes myself, but I agree with you if you don't make these mistakes, you have the potential to make huge profits.