The crypto world is quite a complex world. For people who are just starting to do crypto exchanges, it can be challenging for them to get their investments right and achieve profits. Cryptocurrencies are known to have a dynamic or volatile nature, hence, getting good returns every time when you are investing, is not possible. Every loss or win in the crypto environment is completely yours as you are the one who makes decisions and invests. However, while doing crypto trading, you need to know some do’s and don’ts, that can make your crypto journey easier.
This write-up will give a brief overview of the many cryptocurrencies do’s and don’ts for every beginning investor and intermediary investor. There are some common mistakes to prevent as a crypto investor for profitability. They are as follows:
1. No FOMO, No FUD
When you see the market in its bull phase, Fear of Missing Out (FOMO) becomes real. Usually, potential investors feel FOMO when they become aware of how much profit they could have made when the market is ascending. This case is also similar for beginners as they only sell their assets in a short in order to get fiat in their account. FOMO is transitory in nature, however, every investor should make sure to avoid it. One has to understand the crypto exchange market well, as it has both bears and bulls. Only if you know the market clearly, you can get good returns.
FUD is developed to bring down the prices of cryptos. It stands for Fear, Uncertainty, and Doubt. This element is known to bring panic in intermediary investors and beginners. For instance, let’s take the case of Chainlink (LINK). It can prevent you from investing in a good project. For growth in the crypto space, particularly for such kind of news, performing with due conscientiousness is essential.
2. Do Your Research (DYOR)
For making good profits, doing effective market research is integral. Cryptocurrency exchange markets are highly dynamic in nature but they do provide higher returns. Investors who generally look at high volatility, miss out on the good side of the market. And, those who only consider higher returns may lose a lot of funds when the market descends.
Apart from Bitcoin and Cardano, there are hundreds of altcoins that can still make you good money in return for all your investments. To achieve this, read carefully about the projects you invest in and take detailed notes of the markets. Furthermore, don’t feel negative when you lose money by investing in altcoins. Hence, DYOR and select your coins wisely.
3. Use a Cryptocurrency Portfolio Tracker
Cryptocurrency portfolio trackers are integral to understanding your losses and profits and tell you about the investments in cryptos you made initially. Several crypto experts suggest using a crypto portfolio tracker for helping you know your investments better.
4. Use Trustworthy Exchanges
When you are doing crypto transactions like fiat to crypto and vice versa, always do them through reliable crypto exchanges. You must maintain maximum coins in your wallet when you do such transactions. One of the best cryptocurrency wallets in India can help you make withdrawals and transfers easily. They are a secure way for holding your crypto assets, thus, preventing any occurrence of cyber attacks.
Moreover, ensure to not make payments via websites, fake wallets, private links, or social media. Hackers or scammers usually utilize these mediums to obtain payments and scam investors of crypto.
To wrap it up, every crypto decision you make as an intermediary or beginner must be calculated cautiously. Following the above-mentioned do’s and don’ts, you can stop yourself from coming into a crypto scam and develop yourself into a wise investor.