Is it possible to get rich quickly?
For the longest time, anything associated with getting rich quickly was a scam – until cryptocurrency entered the chat! No, seriously. Who hasn’t heard stories of people who became overnight multi-millionaires after investing in crypto?
It might have had its fair share of doubters, but now cryptocurrency is a prime investment market. Everyone from Wall Street to the common guy wants a share of crypto.
But, just like any investment, investing in crypto is risky and needs a strategy. This is why you need to learn the common mistakes with cryptocurrency investing and how to avoid them.
Here’s a scoop you can’t afford to miss.
Treating Cryptocurrency as a Get-Rich-Quick Market
Yes, we know! It’s ironic that we fronted cryptocurrency as an investment that can make you overnight riches and now we’re saying you shouldn’t treat it as a get-rich-quick market.
Hear us out!
The cryptocurrency market is known for its wild moves. Bitcoin price, for instance, grew from about $28,000 in December 2020 to a high of $68,000 in November 2021. This is the kind of yield that turned bitcoin holders into overnight multi-millionaires.
However, as more coins are being introduced, the crypto market is maturing. It’s starting to follow the trends of other investment markets. As such, the present-day crypto investor shouldn’t treat this market like a casino; otherwise, you could incur big losses.
Treat this market as you would any financial market. It takes tact and patience to make great money off crypto investing.
Buying a Coin Because It’s Dirt Cheap
Scroll through any cryptocurrency trading platform and you’ll find tens of coins that cost below a penny. These are attractive to most newbie crypto investors since they’re cheap and offer the greatest promise of high returns. After all, successful coins like Bitcoin and Ethereum followed the same trajectory.
Buy low and sell high is a guiding principle in investing. However, this doesn’t mean you hop on every other coin just because it’s dirt cheap. There are coins whose price dropped to zero, never to rise again. Some are fraudulent.
Do extensive research before investing in any cheap coin without an established market presence. What are the experts saying? Who’re the founders?
Not Choosing the Best Crypto Wallet
To invest in crypto, you need a crypto wallet.
There are now about 100 wallets and you can expect them to keep increasing in number. These wallets aren’t created equal. Worse, there are fake wallets that will scam you out of your money if you aren’t careful.
A key part of being a diligent crypto investor is choosing the best crypto wallet. Check the services it offers, ease of depositing, withdrawing, receiving, and sending money. Availability of ATM services, like those offered by Byte Federal, is a plus.
Avoid These Common Mistakes with Cryptocurrency Investing
Investing in cryptocurrency is an ideal way to diversify your portfolio. However, this ultra-volatile market comes with unique risks. It takes a competent investor who knows how to avoid the common mistakes with cryptocurrency investing to be successful.
Do you need more investing advice? Explore our blog!