Cryptocurrency has in recent years become a mind-blowing revolution in the world of finance. The emergence of cryptocurrencies like Bitcoin, has taken the world by storm, as everyday people are suddenly turning high profits, and becoming millionaires overnight.
Though the most popular, and profitable, Bitcoin is not the only cryptocurrency on the market. There are a large number of different cryptocurrencies which have become popular online. Estimates show that the number of cryptocurrencies currently on the market range in the thousands, with some claiming there to be as many as ten thousand different cryptocurrencies circulating online.
The success of cryptocurrency, of course, has a lot of people excited to dip their toes into the crypto trading world, in hopes of getting a piece of the pie. This leads many excitable people to jump in without doing the barest shred of research, and lose all of their assets or end up overwhelmed by the volatility of the market.
Photo by David McBee
The most important thing, as any investor would tell you, is to be patient. The prices of cryptocurrencies are volatile and fluctuating. The most common mistake new investors make is to start selling their assets as soon as they see the price drop. It is an understandable mistake to make, as it stems from fear, which affects all of us.
However, as stated the market is volatile, and a drop of value today, may be followed by a rapid increase in price tomorrow. Just remember, cool heads will prevail. The more patience, the higher the profit.
Luckily, today young investors do not need to tackle the market’s volatility by themselves. There are a number of applications and websites, such as the one found here, which offer impeccable service, and help you in predicting the fluctuating prices of the crypto market. Using apps like these, any new investor can overcome the impatience that often comes with beginner crypto trading, and make sure to maximize their profit.
Familiarize Yourself with the Market
This is true for any investor, not just those interested in crypto. One of the most important things that you can do before you start investing, is to familiarize yourself with the market, all the various popular cryptocurrencies, their volatility levels, and anything that else that might impact their price.
Take a look at the long-standing, popular cryptocurrencies, like Bitcoin, Ether, Tether, etc., but also, keep your eyes on the more recent arrivals that gain prominence on the market.
Another aspect of this, is to remain on top of any new developments in the world of crypto. Pay attention to the non-fungible token market, and how it has changed the way people look at crypto.
This doesn’t mean that you have to invest in NFTs or multiple cryptocurrencies, but rather that you should be aware of any developments that might completely turn the market around. Being familiar with the crypto market, will make any choice you make a lot more informed, and thus a lot more profitable.
Do Not Let Stress Get the Best of You
Another common mistake which demotivates new investors, is the overwhelming stress of the fluctuating prices. Many new investors allow this stress to influence private lives, straining relationships with relatives, friends, and significant others. It is of utmost importance to compartmentalize your feelings that stem from crypto trading, from the feelings in your private life.
Maintaining your relationship with those closest to you is not only an important part of everyday life, but these relationships will often offer comfort in the times of stress that stem from the fluctuation of the crypto market.
In other words, maintaining your private relationships actually helps with the stress that stems from your business life, makes you a better investor, and maximizes your profit.
Beware the Fear of Missing Out (FOMO)
A mistake that many prospective investors make in their early days, is falling victim to the Fear of Missing Out, or FOMO for short. FOMO is a form of anxiety that occurs when people feel fear that they will miss out on a popular event, trend or fad.
How does this affect investors? Simple. Many new investors might notice that a new, unknown currency is getting traction, and instead of investigating it, or waiting a few days to see where it goes, they fall victim to FOMO and put a huge chunk of their assets into it.
While this could result in a significant rise in profits, more often than not, it leads to a loss of funds. So before investing, take a look at some ways in which you, not just as an investor, but as a person, can combat FOMO.
These are just a few traits which young investors need to be aware of before starting out their journey into the world of crypto trading.