Problems with new Crypto investors

They’re surprised by Cryptos' volatility

Cryptos in general are prone to major valuation swings as whales — the term for large institutional investors — buy and sell massive quantities. New investors should go in with clear eyes and brace themselves for major dips and spikes.

Get familiar with cryptos movements before buying any so as to not get scared into selling their holdings if they see a drop soon after they buy.

Let's take Bitcoin as an example, when it broke$50,000, a bunch of new people bought in, and then you had savvy whales who took their winnings and caused a pullback. Then some spooked investors sold, and the whales bought back in at a lower price.

New investors should strive to be unfazed when they see major movements, whether they’re positive or negative.

They don’t go in with a plan and let themselves get greedy

One of the most important things a new crypto investor can do is know their goals. Too often, new investors get enamoured by quick increases in the value of their holdings and decide to see if it goes up anymore. Instead, they should sell if they hit their targets.

When you have a situation where your money is up 2x or 3x, you’ll think that it was too easy. Remember to stick to your guns and don’t get greedy. If your goal is 2x and you hit that, sell it and be thankful that you hit your number.

They try to time the market

One of the biggest mistakes new investors making is trying to wait to buy bitcoin at the cheapest price possible, only to get upset if it goes even lower after they make their purchase. It is impossible to be able to time the market, especially one that is so volatile.

The best thing to do is use the dollar-cost average (DCA) strategy. Buying a little bit of bitcoin every day at a wider range of prices, to build their holdings over time.

They get sucked into the world of shitcoins

New investors who find themselves having luck with their cryptos investments may begin wondering about the other digital tokens available to purchase on their wallets. In recent months, cryptocurrencies like TITAN have become popular with investors because of the potential gains. We then all say it plumeted from $60 to $0.

Getting into the world of shitcoins is “highly tempting” because they’re of the immense potential of 100x or even 1000x.

Unless you’re willing to put in the time and research to understand what you’re getting yourself into, it would be wise to stick with mainstream cryptos (BTC, ETH, ADA so on and so forth) that have been around for a while.

P.S. Not finical advice

Edit: If you think there are some things I missed in this post do let me know. I would love to hear other internet strangers ways.