Top 5 Noob mistakes in Crypto!
When starting off with cryptocurrencies it’s so easy to get excited about what’s happening. We also know that when you’re a Noob in cryptocurrency it’s so easy to make a mistake and get wrecked. These are 5 common mistakes that you need to watch out for when starting off.
First of all….. Noob – Google says, a person who is inexperienced in a particular sphere or activity, especially computing or the use of the Internet.
5) Don’t go balls deep when you love a single cryptocurrency. When you read up about crypto it’s so easy to think it’s all going to go to the moon and beyond. But one thing that’s for sure is that crypto markets are extremely volatile, it can go way up and right back down. Obviously don’t convert all of your fiat currency into crypto, whatever you do choose to invest crypto, spread your investment into multiple coins, therefore you can defend your investment if/when the price drops.
4) A lot of chat in this space is speculation from one person telling you that another person or group is going to buy into a new coin soon. For example with ICON, there was a huge feeling that the Korean market was going to buy into this coin. There is also talk about Bitcoin, saying that institutions are going to buy out Bitcoin shortly, be wary of this. Institutional investors are smart too and they see this. Try not to outsmart everyone else, buy for the right reasons. Don’t just buy because you think some other guy who is dumber than you is going to buy, usually in these cases you will be the one that will end up being outsmarted.
3) Believing the FUD (Fear, Uncertainty and Doubt). How many times have we heard rumors that Vitalik has died (Vitalik Buterin, Ethereum founder). There was a case where someone posted an image related to a Vitalik death rumour, this caused Ethereum to crash by 10%. There’s always a lot of fake news related to cryptocurrency and a lot of times rumors get up-voted to the top of Reddit or other social media. These rumors are created to manipulate or crash a particular coins or the entire market. Always check those facts when monitoring and researching cryptocurrencies; before to making your decisions.
2) Buying when news is announced. Often times there are really exciting breaking stories in the land of cryptocurrency but the chances are that when you buy a cryptocurrency the “news factor” has already been factored into the value of the coin or token. The point here is to buy for what it is, don’t buy it because you feel like you have an edge on the news.
1) Don’t store your cryptocurrency on exchanges. Sometimes it may feel safe to store your cryptocurrency on an exchange but the opposite is the case. Exchanges are the #1 target for hackers due to the huge amounts of currency being stored on these exchanges. Many early crypto investors stored their coins on an exchange called Mt. Gox, when it went bankrupt in 2014 Mt. Gox was the largest and most popular exchange, handling around 70% of all cryptocurrency transactions. Mt. Gox was hacked for more than 850,000 Bitcoins, which is worth over 6 billion USD today. Coinbase is one of the leading cryptocurrency exchanges today, while technology has improved today and far greater safety precautions are taken, nothing in the cryptocurrency space can claim to be impregnable.
More recently there have also been hacks on Coincheck and BitGrail for approximately 400 million USD each. That is a lot of money being hacked from cryptocurrency exchanges, and it’s something you do not want that to happen to you. Just think about it, remember that exchanges do get hacked and remember that the best place to store your coins is with yourself, keep it yourself and store it safety.
Thanks for reading, did you make any of the mistakes listed here? Did you make any other mistakes that you would like to warn others about? Leave a comment in the comment section below.