Crypto market investment in particular and financial markets in general obviously you must have a basic knowledge of crypto. Everyone wants to be a real investor and make a lot of money from the crypto market, but to do this is not easy. How many times do you have to fail to gain your own experience?
Crypto investing is one of the most profitable investments every year, with average growth consistently higher than gold and indexes.
Despite the potential, there are not many people who lose money in this market. In the following article, Ola City will join you to learn 10 wrong reasons for failure that investors often make.
1. Invest in coin has just pumped
This is one of the many reasons why crypto traders lose money. Traders often like blue and hate red. Although the coin has pumped, there is a certain motivation for traders to buy. This is also the reason for the FOMO situation in the market.
For example, 24 hours ago coin A was only $0.24 and it’s currently $0.39 – this is the time to attract traders to buy, but buying this is high risk as it will pump at any time. So keep in mind that investing in a pump is high risk.
2. Can’t find price data
You forget to check the price figures of the coin you just bought. For example, the price of Ethereum fluctuates from $170 => $190, and at some time you’ll see ethereum’s price at $210, this is the time you shouldn’t buy.
Not caring about the price figures of the coin will cause you to lack information about the coin price so it will cause investors to be the wrong object. Check the price data when making investment decisions.
3. Mis-evaluating the market
You are only interested in the strongest and lowest bullish results in Coinmarketcap when you decide to invest. This will make you mistakenly believe that you can earn a large amount of money or can cause you a sense of fear. You only look at the surface of the market so you misunderstand and make the wrong decisions.
4. Set the wrong audience expectations
You are investing in a coin and expect it to rise in the next few days. For example, if you’re investing in BAT, a basic attention token, BAT’s current market cap is about $300 million to double to $700 million — a huge and unlikely number in today’s market.
You invest in an ineffective BAT not a bad BAT but you have chosen the wrong audience. BAT can be a good long-term investment but surfing is not good.
5. Do not take profit
The loss-making investment has you having a headache. But with highly profitable investments you don’t take profits that turn it into a loss, it’s more of a headache. Not taking profit is one of the many reasons why traders lose money.
The crypto market has a very high volatility rate and can be considered as the most dynamic in financial markets. This will cause dumping and pumping to constantly turn your profit into a short-term loss.
6. Less intelligent trading plan
You make incorrect trading plans, which can pose a risk to your investment finances. We realized that incorrect trading could cause a risk of losing about 10% of each account’s revenue in a month. Make sure the strategy you set out is perfect.
You are not really patient when entering this cryptocurrency market. The fact that you are too impatient in transactions can make you rude. Changing the way you look at the crypto market, they’re always changing from day to day, so keep an eye on changing the way you look at the market to make the right and accurate transactions.
7. How to deal with bad risks
Smart investors often have plans before the risks can come. For this crypto investment market as well, you need to grasp when the best is, put in place the intended plans if the worst-case scenario occurs.
In bad situations, investors need to handle them best to make sure they are not rude. Or make sure that it is on the right track and that what needs to be done is to wait for the moment when the coin grows.
8. Investment account balance is not high
If you invest in cryptocurrencies with the intention of getting rich with a low account of less than $1,000, drop that thought. Investing less leads to not really much profit.
Did you know that large investors, or crypto market experts, only make about 1.5% of their profits from transactions in a month. Try comparing high-margin investment accounts that will return more than those that are a lot lower.
9. Refuse to change the system
If the investment is not very effective, the usual thing to do is to jump the system. Changing a system will have to start all over again. The start is to make sure that you are analyzing them carefully, thereby capturing the changes of the market in the past, thereby making effective trades to return the best profit.
10. Follow crypto trends
Room-by-room investment takes place a lot in countries, most people invest in words, or promotion and investment racing. You don’t really have your own opinion about them, you don’t know how you’re going to make such an investment, there are simply a lot of people who invest in them and just follow through.
This leads to early failure, the reason being that you do not have any knowledge of the cryptocurrency market, leading to financial problems being disturbed causing losses. Crypto traders often quickly withdraw from coins when there are irregularities when so many people invest in them, the growth is rapid and there is no reason.
Everyone has a different perspective on investing. The first mistakes are inevitable. However, in the investment world, there is no such thing as luck. You will get what you deserve, you also need confidence and patience. You can learn from other people’s mistakes and continue to apply good thinking and strategies to make a profit from investing or accept that the world is not for you.
There’s no shame in admitting that you can’t stand free market volatility like crypto. In that case, it’s best to stay away from it. You must make the right choice to protect your future and assets.
Ola City Global