The main incentive of investing is to make profit. On the other hand, there is also the risk of losing money.
One of the most popular investments these days is digital currency. In Singapore, even their wealth fund GIC has already invested in a crypto exchange.
If you are wondering how to invest in cryptocurrency without losing your money, this article can be of great help. Whether you’re just dipping your toe on crypto or have already been investing for a while, there’s plenty of things you still need to learn. This includes pitfalls you want to avoid. Here are some of them:
Not Knowing Your Investments
The worst mistake one can do in any investment is not knowing what they are getting their self into. You may feel overwhelmed with the amount of information you see online. However, don’t blindly follow them. For example, if you are following influencers online, don’t make decisions based on their tweets or updates. Keep in mind that influencers work with other organizations to promote coins. Always do your research before investing. This leads us to the next mistake.
Lack of Research
Before learning how to invest in cryptocurrency, you also need to do your homework. A quick search online can give you loads of information about the project, their developers, and even issues they are involved in. You can even dig a little deeper by reading through their white paper. If you don’t find mind much information about their project and developers online, this could be a read flag
Investing an Amount You Cannot Afford to Lose
Investment always comes with risks. Even professional traders who have been trading for years still experience financial loses. We rarely hear stories of new investors making it big in the crypto sphere. While there are guides on how to gain profit, you could still commit mistakes. The good thing about it is that you can use the mistake to make better strategy in your next trade or investment. While investment mistakes are not totally unavoidable, you can minimize the consequences that come with them. For example, the mistake of investing an amount that you cannot afford to lose. Since the crypto market is volatile, there’s no guarantee that your investment will gain profit as you expected. Trading platforms can be hacked and crypto wallets can have malware. Therefore, keeping the investment amount to a minimum is an ideal way to start with your crypto investment.
Trading based on emotions
Another mistake is trading based on emotions. Avoid deciding based on fear, doubt, or uncertainty. This is because your judgment could be clouded by what you feel. You also need not to worry too much about what’s on the news, other people’s opinion, or just fear of missing out. Instead, focus on analyzing your previous step and strategizing your next step.
If you want to learn more about bitcoin trading in Singapore or take your career in this industry to the next level, contact Crypto Trader today. They offer crypto courses designed to help you learn about proven and tested strategies straight from a crypto-trading expert. Check out their website for details.