Being a beginner in the world of cryptocurrency can feel intimidating at first, but fear not, it isn’t as hard as you think!
It may comfort you to know that at some point myself, and every high profile bitcoin investor for that matter, were a beginner. And as much as we’d like you to think that we didn’t, we all made a few mistakes along the way.
The good news is that I learnt from these mistakes, and went on to become bigger and better. And the great news is that you can also learn from my mistakes! Read on to discover some common mistakes can be made when starting out with trading Bitcoin, and find out how to avoid them.
Bitcoin for Beginner Mistake 1. Do some research on how to invest in Crypto
When you’re reading online or hearing from friends about how millions can be made by dabbling into the world of Cryptocurrency, it can be tempting to simply throw you money into investments.
In my early investing days, I made the mistake of following the crowd and spending large amounts on what I was told I should.
While this can work in the short-term, it can prevent you from fully understanding how the world of Crypto works and leaves you powerless to make your choices.
I found that once I had put in some time to get to know more about the market, I not only had more success as I knew when to buy and sell, but I enjoyed my new found freedom too!
It is important to remember at this point that it is your money you are investing, and as with any investment, research needs to be done. Reading through some articles aimed at beginners, talking to other investors and taking the time to get to grips with the world of cryptocurrency are essential if you’re going to be successful! Knowledge is power, after all.
Bitcoin for Beginner Mistake 2. Refusing to accept help from the community
It is common for beginners to get competitive with their trading and adopt an ‘every man for himself’ attitude. However, it is important to remember that without your fellow investors, you wouldn’t be able to achieve anything!
In fact, when starting out it is a good idea to immerse yourself in the community and hear stories from other Bitcoin traders.
This can be done through following Crypto influencers, or chatting to others who have been a newbie like you on message boards. Either way, starting your investing journey is much less intimidating when you have others to talk to about it!
Bitcoin for Beginner Mistake 3. Taking on too much at once
We all know that the world of cryptocurrency is fresh and exciting, believe us, we have been there.
However, as tempting as it is to completely fall down the rabbit hole and buy into every alt-currency in sight, resist the urge to do this. It is a good idea to remember that these are real finances you are investing, and therefore you should work out a strategy that works for you and stick to it.
Whether you decide to opt for a long-term or short-term cycle, make sure that you exercise self control and stick to your plan.
I started off by choosing several currencies at first, and followed these closely. This will reduce the risk of you stretching yourself too thin and biting off more than you can chew.
There is always chance for you to expand your portfolio further down the line when you’re more prepared!
Bitcoin for Beginner Mistake 4. Forgetting to double-check your trade
When trading Bitcoin and altcurrencies, you’re going to be working with numbers that include a lot of zeros.
Because of this, you’re going to need to get used to checking, and double-checking the numbers that you’re working with. It is all too easy to get excited about what could be a fantastic trade, and miss off or add a zero somewhere. While the crypto community and generally a helpful bunch, there aren’t many of us who would pass up getting a great deal, at a fraction less than it’s worth.
It pays to be careful, especially when you’re starting out!
Bitcoin for Beginner Mistake 5. Making panicked decisions
As with most things in life, nothing in the Crypto market is guaranteed, and anything could happen at any point.
While this may seem scary, it is also quite reassuring as it means that when a coin you are invested in makes a sudden drop, there is a chance it can bounce back. Therefore, it is important to stay calm in situations like this, and not make the rookie mistake of selling when your coin is at a low.
I have found out the hard way that it is not rare in this market for fluctuations to happen. And believe me when I say, there is nothing worse than making a spur of the moment-panicked decision to sell, only to watch the value skyrocket a few days later!
Having a level head and identifying patterns in your coins prices is a great way that beginners can avoid making rushed decisions, and a step forward in becoming a successful trader!
Avoiding making these mistakes is a great way to get started off in the community while you find your own rhythm. Before you know it, you’ll be out there giving advice to a whole new batch of newbies.