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I've seen a lot of people saying that because Bitcoin can reach a $60.000 price per coin, that coins like Shiba Inu should be able to reach $1 without any problems. This is not how it works, you really have to consider the circulating/max suppy.
Total supply $SHIB (no max): 589,736,429,850,842 SHIB
Total supply $BTC: (21m max) 18,894,793 BTC
2. Having no plan.
If you have no plan, you will buy at random and sell at random. Make sure to do your research on good buying points (or DCA), and have an exit strategy.
3. Being scared of volatility.
You cannot be scared of volatility but at the same time have a 10x goal. This is just not going to work. Paper losses of +20% are "common" in cryptocurrency. Long-term cryptocurrency holding has proven to be worthwhile. Especially if you come from a background of stocks where a 20% dip is more like a crash.
4. Falling for scams.
Do not buy coins influencers promote, never send someone your seed phrase, do not trust any links (and be careful of phishing links), and do not connect your wallet to dodgy websites or smart-contracts. Also, if you see that you have recieved a random coin in your wallet, do not touch it. It's worthless and could potentially reveal your identity or try to empty your whole wallet if you attempt to sell it on their website.
Also, do not buy second hand hardware wallets, and be careful where you download your software from. It is also recommended to buy from trusted exchanges only.
5. Being lazy.
Investing in cryptocurrencies properly can be a lot of work. If you do not do your own research (shorthand ), you are prone to make mistakes. Keep yourself updated on the news, really look in to what you are investing in. (read the whitepaper)
A few points you should be able to answer:
- Do I know what the coin does/want to achieve?
- Do I know who the team is? (Follow them on Twitter) Are they experienced? Are they legitimate? How much of the coin do they have?
- Do I know the technology goals? (eg. ETH 2.0 if you are looking in-to ETH)
6. Investing more than they can afford to lose.
Speaks for itself.
7. FOMO'ing.
If you see a coin that has moved up in price 20% in the last 24 hours, it's probably too late too buy it. Don't buy after major price movements unless you really know what you are doing, try to invest before this happens. Don't be greedy.
8. Not diversifying.
And with diversifying I do not mean buy multiple cryptocurrencies. Try to have other investments like stocks, index funds, etc. You can invest 100% in-to cryptocurrencies, but this goes with greater risk.
9. Day trading.
Day trading is hard, you are not a professional. It is unlikely you can guess the top of price moves up right, and it is also unlikely you can guess the bottom of a dip right. Sticking to buying and holding is way more worthwhile for beginners.
10. Following trends.
Do not switch up your portfolio all the time because you see that a certain coin is talked about on social media a lot, stick to your research and remember do not be greedy.
Hope this all helps you guys staying a float in the crypto ocean we are currently in. I wish everyone reading this the best of luck!
CoinMarketCap was used for the supply count of Bitcoin and Shiba Inu.
