1) Buy High (ATH)
Unfortunately, many investors fall into the trap of buying a crypto when it marks a new ATH. However, you should know that the higher the price rises, the more the probability of a reversal increases. Conversely, this is also true for declines.
There is only one way to make gains in any market: buy low, sell high. Doing the opposite will make you lose money!
To mitigate risk, many seasoned investors choose to use DCA method (dollar-cost-averaging). They acquire a certain amount of crypto at regular intervals, investing the same amount each time. This has the advantage of spreading your investment over time and thus reducing your exposure to a sudden drop in the markets.
🔐 Trezor now allows you to buy Bitcoin directly on its Trezor Suite platform. The company will also make it possible to invest in DCA, through automatic recurring purchases, from May.https://t.co/B3MLjRJSmq#Safe #Bitcoins #DCA
— CrypTouch (@CrypTouch_) April 10, 2022
Many cryptocurrency apps allow you to schedule recurring purchases on a weekly or monthly basis.
2) Not doing your own research (DYOR)
You have certainly already seen the term DYOR which means Do your own research. It is important to conduct research on a crypto before buying it. In fact, even an experienced person can create a cryptocurrency in minutes with dedicated user-friendly platforms.
So don’t believe people who tell you that this crypto will be next shiba inus. You have to find out about the development team, the community around the project, the various resources (white paper, site, products already launched, etc.).
3) Not applying money management
It is imperative to define in advance how much you are going to invest in crypto according to your risk aversion and your financial means. It’s tempting to put all your savings into a cryptocurrency when its price rises rapidly in hopes of getting rich overnight. If some like Glauber Contessoto we do, know that thousands of investors have lost a large part of their savings by trying it. And we don’t talk about them in the media.
— ZoneCrypto.Fr (@ZoneCryptoFr) August 27, 2021
Furthermore, it is important not to invest money, the loss of which would put you in a difficult financial situation.