The prices of Bitcoin, ethereum and other Altcoins created huge waves in 2017. Lots of people have switched from stock markets to the crypto currency market because of the extra-ordinary returns and that too within a few days. Tron for example, moved from 0.02$ to 0.30$ in less than 30 days. Imagine when you have held around 10k tron tokens. However there is a huge risk when the market crashes too. What are some of the worst mistakes that most Altcoin investors do?
- Putting all the money in one basket
They don’t want to diversify their portfolio. I knew someone who bought 65k tron coins at 0.06$ , the person thinks to become millionaire in 2018 or get a lot of money overnight. This is not possible because not all coins can become like Bitcoin and it took 8 years for Bitcoin to get to this price. Putting all your money in one coin is the worst strategy ; what if it goes to zero. Always take affordable risk and not more than 10 percent of annual earnings.
- Booking profits too early
Investing time frame has changed a lot and no one has the patience to hold their coins for long term. Nowadays long term means just three months and not more than that. People want to get quick money and they keep dreaming of quitting jobs or buying new house with Altcoins. Stop booking profits too early, always sell half quantity and hold the rest for long term. Remember the guy who bought 2 pizzas for 10k Bitcoins.
- Scared about the Bitcoin drop
While some other guys are addicted to the coinmarketcap and roam around with phones all the time. They love to check the prices of Altcoins every 5 minutes; this is going to make them tired and they are probably become trader in the short term. They would lose their confidence and keep selling all the coins at loss, why do you want to sell a token at loss when you can HODL
- Commission charges
If you are trader or investor, keep in mind that the charges for trading differ from each exchange. Make the clear plan in your mind first and transfer Bitcoins if necessary, because you are going to pay a lot of commission charges. Take a paper and draw the flow chart which would save your time and you can be stress free without worrying. Sometimes due to network congestion, you need to wait 8 days to get your Bitcoin transaction verified and in that case, you should be calm.