The world of crypto can be difficult, complicated and full of disappointments for new people entering the field.
These are 10 mistakes that every investor should avoid.

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1) Investing without a plan

Lots of investors enter the crypto space without any plan or strategy.
Making money and becoming financially independent is definitely a good thing, but this is not an investment plan.
An investment plan/strategy is important in trading because it prevents you from making rash or impulsive decisions and thus losing your money.
Lots of new investors lose their money due to lack of strategy.

How do you actually build such a plan?

You have to start with a very simple question, what is your goal?

After that you need to set goals for yourself, and not just any goals, but ones that have been thought of before.
These goals should be related to your risk management.

If you are young and without obligations, then you will be able to invest a higher amount of your capital than an older person who has several mouths to feed.
A rule that is always important to remember, never invest what you cannot afford to lose.

Once you have an investment strategy, a very important thing is to stick to it. One of the worst things as an investor is not enforcing the rules you set for yourself.

This way you won't be able to analyze and understand why things didn't work when they won't work (and be sure they won't work).

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2) Lack of research

Lots of investors tend to fail because they don't do research on the project they are investing in independently.
They get "tips" from people in all kinds of Facebook/Telegram groups and even from YouTube influencers.

You should always know why you are investing in a particular project or currency.

Independent research has many advantages, for example, with the help of research you can find excellent projects that have not yet received attention from the general public (YouTube, Facebook, Reddit).

Another advantage is the knowledge you will accumulate for yourself in the long term and this, in my opinion, is much more important than the profits.

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3) Wrong trading exchange

Another mistake that new investors make is choosing the wrong trading platform.
What is a proper trading exchange?
Well, there are a few things you should pay attention to when choosing an exchange:

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• Check that the trading platform is secure. Lots of people lost their money on hacked exhanges.
• Avoid exchanges that are advertised on all kinds of websites and offer you "good" terms.
• Check what payment methods can be deposited in the exchange and what the fees are.
• Check that the coins you wish to purchase are in the exchange you have chosen. (You can check this on coinmarketcap and coinecko)
• Another thing that people tend to overlook are the fees. An exchange with high fees can cut into your profits significantly, no matter if you did everything correctly.

It is very important to check this before registering.

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4) Poor storage management

If you are more in the direction of "buy and forget" and are looking to hold your crypto for the long term, know that there are mistakes here too.
The most common mistake is improper storage management of the coins.

Trusting an exchange, no matter how secure it is, to keep your coins for the long term is a very big no no.
Large exchanges are targets for hacking attempts by hackers.

The way to avoid all this is by using crypto wallets, especially a hardware wallet (cold wallet).

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5) backup

You decided to buy crypto and even invested quite a bit of money in buying a hardware wallet, but did you back them up?

The last thing you want is to read in a few years about a meteoric rise of a currency you invested in, open your wallet to redeem the funds and find that you forgot the password and have no backup anywhere.

Think it's not possible? Google it and you'll find that this happens a lot and people with millions in their wallets can't do anything because of the lack of backup.

Yes, backing up passwords can be annoying and exhausting, but rest assured it will be worth it in a few years.

And when i talk about backing up passwords, it's not just about backing up your hardware wallet, but backing up everything related to your money.

Here are some tips:

• Back up the passwords of the exchange you use.
• If you use Two-factor authentication (if not, you should start) back up the recovery code that was given to you when you activated the verification, this code will be used by you to reset the verification in the event of the loss of the existing device.
• Back up the seed (backup words) of your wallet (cold and hot) and keep the copies in a hidden place. It is recommended to back up in several copies and keep in different places.

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6) Talking about your crypto

Yes, this is definitely a mistake and unfortunately it is a mistake that quite a few people make, especially the new ones.
Showing off to your friends how much you've earned from SHIB or another currency is tempting, but you never know who's listening.

It may sound paranoid, but it happened quite a bit.
Many people have been robbed and you can be sure they got the information from somewhere.

You should avoid talking too much and not only in public, but also online. Lots of people share information online that attracts people who are waiting to receive such information in order to sting.

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7) Transferring crypto on the wrong network

It can be said that this is perhaps the biggest mistake people make and definitely the most annoying.
Don't get me wrong, all these networks can really be confusing, but it's very important to double check.
With a simple Google search you can find out which network your currency is on and thus avoid mistakes.

It is very important to check before making a transfer, because sending coins on the wrong network will cause you to lose your coins forever.
If you intend to make a large transfer, make a trial transfer of a small amount first.

Be sure that it is better to pay a little more fees and not lose the funds for good.

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8) Taxes

Yes, I know, you are trying to make money, and then the state comes and unilaterally decides that it is your partner, and now you have to share your profits with them.
But trust me, you don't want to mess with the IRS on these issues.

It is better for you to pay what you have to pay, than to think that you are smart and can hide it under the table, because in case you are caught, you will have to pay much more than you would have paid in the first place.

It is recommended to consult with an accountant who knows the crypto space, because this is a new field and the regulations on it are constantly changing.
An accountant will know how to guide you in the best and most profitable way.

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9) Risk Management

Risk management is one of the most important things (some would say even the most important) when it comes to trading.
If your strategy is to "buy and forget", risk management is not as important to you as it is to those who choose to enter the field and trade on a regular basis.

Improper risk management will lead you to make mistakes that will destroy your trading strategy, and make decisions that stem from emotions due to the risk and the high amounts at stake.

One of the ways to manage risks is to add a stop loss order to your trade.
Crypto trading is different from stock trading because it is highly volatile, more so than your reaction time.

Avoid leveraged trading

It seems very easy to get rich from leveraged trading, but trust me, it is very far from reality and most people lose everything.

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10) Scams

Unfortunately, this is the most common mistake.

Although the crypto field has existed for over a decade, there are still quite a few scams in this space that take advantage of the new investors, whether it is through pump and dump groups, phishing, pyramids, and more.

Of course, the people who fall into this have a fair share of guilt, because many prefer to make money the easy way than to go through the hard and right way. (did i say research?)

The easiest way to detect a scam is by asking one question - "Is it too good to be true?"
The answer to this question will disqualify 99% of the things you will see.