In this article, I will try to analyze all the important and major problems which every crypto investor must not overlook and make a good strategy before investing in the crypto market, so let’s start it.
As you all know that cryptocurrencies are now a hot and globally trendy topic even many major companies also investing in cryptocurrencies and try to hold it as much as they can.
Many new crypto coins are also introducing and showing tremendous growth rate and proved to be very lucrative for newbies who want to invest in crypto assets, but in this article, I want to tell you 5 major problems which could easily lead your money in vain because maybe you heard all those stories like someone invested 10000 dollars and after a couple of years he made millions, yeah it may be true but luck does not favour everyone and that’s why you should avoid or consider these 5 major aspects related to investing with cryptocurrency.
What are the problems in Investing With Cryptocurrency
Myth “Don’t buy low price coins”
You may be already heard previously that you must invest in major coins like Bitcoin and Ethereum because these coins are eminent and famous and even big companies also invest in them and you must avoid those crypto coins which have a low price because they are cheap but it is not true at all as you may be knowledgeable about the Dogecoin which was not a good crypto coin before because of its low price but after the statement of Elon Musk, that coin showed skyrocketing growth and its early adopters made a huge profit so you can also trust these coins and these coins also generate huge profits for you in future and you should also consider these coins before making any investment decision.
Know your risk limit
As you guys must know that investing is not like that you would surely going to make profits whether it’s share market or crypto market, investing is all about winning or losing like gambling but in investing there is so much time for concluding the result of your investing.
You should not invest that much money in cryptocurrencies which you could not expect to lose, many people do this mistake because they just simply carried away by the current profit growth and think that they will make a good amount of profit if they invest more money but it is not true at all, so that’s why you should know your limits. If You are looking for a complete guide for cryptocurrency then have a look at Everything you need to know about cryptocurrency
you should not invest more than 5 percent of your income in cryptos and it is still true but if you really want to invest more money then 10 percent is ideally perfect for investing and as a newbie, you must have done all research about the crypto market before investing otherwise your money is just going waste.
Do not invest all your money in one coin
Many investors whether old and experienced or newbie invest all of their money in one crypto coin like Bitcoin or Ethereum because these cryptocurrencies are most popular cryptocurrencies and many people bought them so newbie also invest their all money in these cryptos and not even consider other promising cryptocurrencies but it is not like that these crypto coins would always turn fruitful for you because few people end up being millionaire because they invested in these coins like I said in start luck does not favor everyone and you could not pretend the future growth of any crypto coin , even Bitcoin and Ethereum have also shown major down fall in past many times and so many investors lose their money who just want to make profit in short time and nowadays , you can also see that bitcoin is just falling down and down , so just imagine that persons who invest all of their money in bitcoin three months ago in hope of good returns and most of them are short term investors who just invested their money for short term but now they are in position of cliffhanger in which they do not know what to do and most of them have already sell their investment because of fear of loosing more , so those investments of those persons just end up as nightmare for them , so you should not invest all your investing in just one crypto coin just because this coin is popular and many people bought it or made investment in them.
You should have your exit plan
Many people who made their investment in cryptos do not have an exit strategy or plan and just going with the flow and it led them to huge losses and that’s why you must have an exit strategy before making an investment otherwise you will lose your investment or turn your profits to losses.
Most of you are thinking what is exit plan or strategy so I will tell you that before investing in crypto market you must decide that how much profit you want to make like 30 percent to 40 percent of your investment and guys you should be realistic and do not assume that you want to make profit of 500 times of your investments because it is not always a case , rarely some persons make that much of profit , so anyways you should decide that you want to make that much amount and when you made that much amount of profit , you will simply exit from market which means you will sell your crypto holdings when you made your target profit and in this way you will probably never end up with losses and believe me guys this strategy is really effective and one of the safest ways for surviving in crypto market otherwise many investors do not sell their holdings even they made 100x , 200x or sometimes 500x and reason is simple that they just want to make more and more profit and at the end they simply ended up with huge loss because cryptocurrencies are so much volatile and uncertain so that’s why you must have exit strategy before investing in cryptocurrencies .
Game of patience
One of the major reason for losses in the crypto market is that many investors do not have patience and they simply panicked when rates are moving and they start selling their holdings in fear of losing but they must have patience and should wait because as I said before that cryptocurrencies are highly volatile so this thing is also applied in profit-making, so you should have patience when you invest in cryptocurrencies.