Each of you once started from scratch on cryptocurrency exchanges. Some obtained better profits, others worse and some of you lost your first invested capital.
No diversification
It is nothing but an investment in various cryptocurrency projects. There is never a guarantee of the growth of the one chosen one. Something completely different could always happen. Therefore, it is worth considering a few projects in case of unexpected situations. It is never worth betting on one card and count on luck.
Too much differentiation is also bad. The cryptocurrency market is full of shit coins and we often have no control over all new projects.
Buying and selling cryptocurrencies too often
In this way, we are exposed to additional costs such as taxes and commissions on the stock exchange.
Lever
That is, the use of borrowed money to invest in cryptocurrencies that must be paid back if you think that the price will go up or down. It is a useful tool that will help you earn on a short sale or buy, but only for advanced players.
Buying more than you can afford
You can compare it to gambling, when we lose our money on the stock exchange and we constantly add to make up for the losses. It often ends up being very bad for our investment, but it also hurts our mind.
Buying high and selling cheap
This is a common problem for novice investors on the stock exchange. Often seeing how the price goes up, we buy with others. On the second day, the price drops and the fear of a loss appears in the eyes. Then our mind tells us to sell. We are unnecessarily worried because the fall in price itself is not a loss of capital.
FOMO
So fear of missing something. Often, under the influence of emotions, we buy cryptocurrencies when we see the price rise by 20, 50 percent. We follow the crowd, worrying that we will miss the super profit.
This is where crowd psychology works. Everyone wants to earn money and join the express train.
Buying cheap cryptocurrencies
It often happens that our attention is drawn to some cheap cryptocurrency. Of course, there have been cases of price jumps, but this happens very rarely. The probability of an increase in shit coin is low. Therefore, it is not worth investing in cryptocurrencies with more than 100 coinmarcetcap