Anyone can invest in cryptocurrencies, but converting those investments into significant profits is an art that only a few have mastered.
If you are looking to invest in cryptocurrencies this year, be sure to follow the rules of crypto investment and avoid these common, yet not so popular, mistakes that people usually make with this type of investment.
1. Ignore the Basics
Investing in a cryptocurrency without knowing the basics of the crypto investment industry is a big mistake. Like any other investment, the crypto market has its rules, strategies, procedures, etc. that you can help you a lot in ensuring the best value out of your investments.
So, the first thing you should do as a novice crypto investor is to try and learn the market and how crypto investments work.
2. Don’t know about the project
Not knowing everything about the company or project you are investing in is one of the silliest investment mistakes you can make.
Don’t rush into something you know nothing about. Take your time to learn about the project, talk to the team, try to understand their idea and its purpose. And if everything seems fine and you love what you read, see and hear, do proceed with your investment in that coin.
3. Don’t make mistakes
Even the years of research and study cannot guarantee that your investment will return huge profits. So, you know what? Make mistakes, but learn from them.
If you’re too afraid to make mistakes, you’ll never learn or experience how the crypto market actually works. Fear is one of the primary reasons why millions of investors miss out on daily opportunities to invest in good cryptocurrency. Make sure you aren’t among them.
4. Don’t mind the fees
Unless you are investing in an ICO or any other kind of token sale where there is no fee, you should consider the trading fee as an important factor when buying a cryptocurrency from an exchange.
Most buyers will simply look at the coin price and decide to buy it without considering the exchange fee, which can greatly affect the profitability.
5. Sell instantly
I know most people think that the idea with cryptocurrencies is to buy at a low price and sell immediately once the price is up. This can be a useful mechanism in the short term and if you are looking to make small profits.
But, if you are in for the long term and want to make significant profits from your crypto investments, stay invested for quite some time. High-potential and stable cryptocurrencies like Titan coin are designed to produce huge long term profits to those who choose to hold the coins for significant periods.
6. Ignore tax implications
One of the common mistakes that new investors make when purchasing cryptocurrencies is to not understand or ignore tax implications.
Even if the cryptocurrency market and trading are unregulated, you still have to pay the taxes not just on your cryptocurrency profits but also on each of your trades.
7. Invest too much
When all is said and done, cryptocurrency trading still remains one of the riskiest and highly volatile industries, so you wouldn’t want to invest more than you own.
In fact, the first rule of trading says, “don’t invest more than you can afford to lose.” It is more applicable to crypto trading than any other market.
Hope these tips help you make better investment decisions this year. Invest in good cryptocurrencies and avoid common mistakes.