Intro:

Investing in crypto is profitable but not for everyone. Totally unprofitable and greedy especially for beginners. Because new investors make many big mistakes in the beginning. So investing or trading can be exciting for them at first. New investors are constantly getting involved in cryptocurrency trading and many new investors fall into common pitfalls when it comes to investing. From poor security practices to a lack of knowledge about the crypto market, new investors can quickly lose money. They usually make some common mistakes in the beginning. Let's discuss what they do wrong in the market:

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Lack of Basic Crypto Knowledge:

It is mostly true that many new investors get involved in trading constantly by hearing profitable stories on various social media or from friends. They are directly involved in investment or trading without acquiring any knowledge about it. Although initially they needed to acquire basic knowledge about crypto and how it works. But they get excited and start investing without knowing the high profit and later suffer losses and many lose everything and exit the market.

Short Term Thinking:

Honestly most investors want to get more profit in a short period of time. It can be seen that most of these investors have less patience and take frequent trades. But they don't have any proper plan or they don't have any idea or plan about the long term. Where a coin is supposed to be profitable, they lose it completely due to some simple mistake. To be honest, if it was possible to get rich in a short period of time, no one would have thought of long-term planning. Short-term plans may bring some temporary profits but later on some trades may result in losses that are several times greater than your gains.

Ignoring Fees:

We can buy crypto in different ways. But it appears that there are new investors who jump into buying crypto without understanding how gas fees work on exchanges. As I heard from some people they buy crypto with their bank credit card. However, this may incur huge surcharge fees and additional charges from the card company. Most of the new investors have no idea about which crypto exchanges offer low fees and have no idea about the best method to buy and trade crypto. But exchanges that pay low fees to buy crypto can save a lot of money in the long run.

Keeping Crypto in Online Wallets:

It is sad but true that there are many investors who do not understand the difference between exchange sites and wallets. Although we can keep our crypto using many online wallets nowadays but we have to remember that it is only available online so any time we can face the problem of hacking or scamming. If this happens then we will lose the entire money. While holding money online is convenient, it is much more risky than storing your crypto offline. The safest way to store crypto is with an offline hardware wallet. Hardware wallets are offline based and are always protected by private keys. So keeping money in this type of wallet is very safe.

Wrong wallet address:

Most new investors send crypto to wrong addresses. Honestly when I was first newbie I also made this kind of mistake though it was very little. Most new investors mistype addresses when sending or receiving crypto. And for their mistake, the money goes to the wrong address.

Forgetting Crypto Password or Seed Phrase:

There are many new investors who forget their wallet password. I've also seen some people I know who forget their password within a few days and even forget or save a backup seed phrase to access their wallet. So most of them cannot recover their money.

Wrong Trading Plan:

Most investors do not have a proper trading plan. As many people trade but have no idea about leverage. Even many who adopt different trading strategies but their strategies are very complicated and their trading orders are very flawed. They trade directly without proper planning. There are even many investors who take frequent trades hoping to make a profit. They don't even know about things like stop loss or dollar cost averaging.

Conclusion:

Just as you can make a profit by investing in crypto, you can lose everything because of a little mistake. This can seem overwhelming to investors, especially when you're just starting out. But you have to remember that this is a digital market and to survive in these markets you must become an expert and avoid these mistakes. If you avoid mistakes, it can help you become a confident investor. If you lack crypto knowledge then you can lose thousands of dollars due to your incompetence.