Written by:Diomer Antonio Galán Rincón.
Bachelor's Degree.Public Accounting / MSc.Science of Higher Education.
Author: @dgalan,through Power Point 2010 tool, and using public domain image Pixabay
There are countless mistakes that can be made when starting with an investment in cryptocurrencies, especially for those who take their first steps in this economically attractive world.
Currently there is a great boom in cryptocurrencies ranging from large investments in coin acquisitions, earning cryptos by playing online; to the creation of new currencies that distort the market, it should also be noted that there has been a real bombardment on news related to this topic, something that has reflected in an increase in the volume traded in this type of assets, and in many cases also made by those new investors who have little knowledge.
Investing in something we do not know:
We should invest in what we can understand and have previous knowledge. The same thing happens with cryptocurrencies. We can say that the main mistake is to make an investment in something you do not understand. Since no one should make investments in assets without knowing the risks involved.
For this not to happen, a study and research must be done to be informed and not to have a third party criterion, so we can build our own opinions. When we are sure of where we will be able to invest our capital, we will have clear the risks that this investment has without affecting our economy and where we can be calm waiting for the results.
Image taken from:Pixabay
Believing that you are going to be a millionaire in a short time:
A very constant mistake, is to believe that you will have the money quickly, investments in cryptocurrencies should be considered a long-term investment, keeping in mind that we deal with technology and little by little it has more adoption, besides it is very volatile market.
The important thing is to be able to understand with a cold mind and be clear that the investment world is not a sports bet that lasts a few hours. Perseverance and dedication will pay off over time.
To make investments above the possibilities of each one:
In this case we can say that the investments that we make must be our own, not by leverage. It is very important not to get into debt to make the investment, so that they simply form a small percentage of the investment portfolio, to give diversification to our capital, sheltering it from inflation.
Likewise, the investment should be made when it does not affect the investor's economy and can be assumed as such.
It is important when acquiring a cryptocurrency, to know the project behind it, not just buy it for the simple fact that it is very cheap, without analyzing its function and utility, the issuance of the same, who are the developers, who support it, how it captures or generates value, among other fundamental elements that are much more than the price.
Image taken from:Pixabay
Let yourself be carried away by emotions:
The emotional element is always present when making an investment, and plays a fundamental role, being one of the main mistakes that novices make. Trading an asset simply because of scandalous news that often contain false information is a fairly common reality.
Emotional connections make us make different mistakes such as not accepting the loss of an asset, as well as impairing us in making the right decisions to make profits.div>
To be able to control emotions we can have parameters that we previously analyzed of purchase and sale of cryptocurrencies, so we can have clear margins of liquidation of investments to determine whether to invest again.
To make the investment for a single cryptocurrency:
We can mention that in many occasions the technical ignorance, makes us allocate our capital in a single cryptocurrency, which goes against the basic principle of diversifying. The best thing for an investor is to be able to have a diversification of assets.
For this, it is very important to be able to have studied how much we want to invest and assign risk values, to know well the percentages that we can win or lose.
I hope these considerations can be of great help to you.
I hope you like my article and I would appreciate all your comments.