Crypto is all the rage.
What started as a geek experiment just a decade or so ago has now become mainstream.
There is no shortage of news everyday about the latest crypto fad.
You hear about success stories, people like the 17-year old Erik Finman who have hit the big time with crypto.
But for every winner, you can bet there are numerous others who lose. So if you are thinking about getting into the game yourself, then it is a good idea to first learn from the lessons and mistakes of others.
What follows is a list of the most common mistakes that people have made.
Mistake 1: FOMO
FOMO is a trait of human nature. It stands for Fear Of Missing Out. We humans have this tendency to not want to miss out on something. This is dangerous because others can prey on this fear to make us invest in a coin that is hyped up, and when it comes crashing down, we lose.
Mistake 2: Too Many Voices
There has been an explosion of self proclaimed crypto gurus recently. Just go on YouTube and take a look. So who do you trust and who do you listen to? A good strategy is to listen to a few and get a more balanced picture. The best ones to listen to are those who have actually done what they are teaching, and have the results to back it up.
Mistake 3: No specific plan or approach
Most people getting into crypto have no plan. While it is ok to experiment and have some fun at the start, if you are thinking of building long term wealth, you need a plan, otherwise you are just planning to fail.
Mistake 4: Not Diversifying
A very basic rule of investing is to never have all your eggs in one basket. This is true of crypto as well. You can run bots, you can invest in defi, you can do NFTs, crypto domains, yield farming etc so it is good to diversify into all these different areas and not just focus on one.
Mistake 5: Investing Money You Cannot Afford
It is a possibility that you can lose it all (though unlikely if you are following a solid plan). So only ever invest what you can afford to lose. This means you should never play with crypto unless you have set aside some 'play' money.
So take heed of these five mistakes and make sure you avoid them when taking your first steps into the world of crypto. You can check out this solid and tested plan for a good start.
