3 common mistakes altcoin investors make – CryptoMode
There’s no doubt that altcoin investors can make much money if they do their research. But many people still don’t know how to invest in altcoins and end up making mistakes that cost them money. If you’re an altcoin investor who is looking to make more money, then you should avoid these 3 common mistakes.
Altcoin investors can’t invest too much too soon
Only invest some of your money at a time. Of course, you should never put all of your eggs in one basket. That is especially true when investing in altcoins. If you lose money on an altcoin, that may mean losing money you could’ve spent in other ways.
Only invest what you can afford to lose. The same rule applies as above—don’t throw your money away! Altcoin investing is risky, so don’t get too far ahead of yourself. On the other hand, don’t let greed cloud your judgment and cause an irrational decision-making process. If something seems too good to be true, it probably is, especially in crypto.
Only invest what you can afford to risk losing if things go wrong. Always consider how much time it will take for investments to grow back to their initial value.
Altcoin investors often buy into the hype
One of the most common mistakes is buying into the hype. However, a coin with no solid project or team behind it is not worth your investment.
You also need to be very careful where you store your crypto, especially if you have a lot of it. If you choose an online exchange as your storage option, it will always involve some risk. Negate that risk by engaging in self-custody.
If you want peace of mind when storing all that crypto cash in one place, then go with hardware wallets such as the Ledger series. These devices offer excellent protection.
Not researching the project fully before investing
The first thing you need to do is research the project. What does it aim to accomplish? Who is behind the project, and what experience do they have? How long has this coin been around? Where are the developers located, and how accessible are they? Are there any known issues with the codebase or other technical concerns you should be aware of?
Altcoin investors can answer these questions by reading up on its white paper (if one exists) and doing basic research. On top of this, you should also ensure that there has been consistent development over time. If not, then there could be issues regarding roadmap execution.
Investing in altcoins is a risky venture and no one should invest money they can’t afford to lose. However, it is possible to make good profits if you do your research before buying into any promising project. You should always invest in projects that have a real use case and active development team behind them which can be easily verified by looking at their website or Github repository.
None of the information on this website is investment or financial advice and does not necessarily reflect the views of CryptoMode or the author. CryptoMode is not responsible for any financial losses sustained by acting on information provided on this website by its authors or clients. Always conduct your research before making financial commitments, especially with third-party reviews, presales, and other opportunities.