Cryptocurrency investing hype has dropped slightly, but this doesn’t mean that it’s a dead market by any means, they’re simply waiting for the bear run to finish. This also doesn’t mean that there are people out there starting their investment portfolio with crypto. If there is one thing we have seen in recent months is the endless number of mistakes that have been made by beginners, even though there are plenty of articles and news posts regarding this. Before we go into anything, it is essential to understand that you need to do your own research, you don’t need to be a pro to start crypto, but you definitely need to research everything before you invest. The crypto industry is pretty ruthless and there are many broker scams and other scams that are trying to get your money. In this article, we will go through the most common beginner crypt mistakes to avoid in 2022.
Before you do anything, it is essential to choose the correct trading platform for your needs as this can come around to bite you later down the line if you choose the wrong platform. Unfortunately, this is something that many beginners get wrong, one because they don’t know what to expect, and the other is that they don’t know what they’re looking for. Here are some factors that you need to take into consideration when choosing the correct trading platform:
- Simple and user-friendly platform
- Offer a wide selection of cryptocurrencies
- Low fees and good asset pricing
- The ability to purchase crypto with your national currency
- An authentic platform that offers high security
- Offers education on trading such as Binance Academy
- It has a human customer service centre that offers support
- It offers a regular update on security
- It offers a range of trading features.
Unfortunately, even if you have chosen the right platform, this does not mean that you understand what a good investment is. For this reason, we will get through some of the features that make a good investment. A cryptocurrency that is worth investing in will have:
- A distinctive or unique function that will alter the ecosystem
- A range of different types of people behind the community that is ready to adopt its use-case.
- A reputable set of developers
- A well-structured and written whitepaper
- A guide to what they are achieving and how they are doing it
Additionally to this, it is important to understand that when you evaluate a currency, you need to consider other factors beyond the price of the currency. Cheaper doesn’t mean better, and it certainly doesn’t mean that you are making an investment. Instead, pay close attention to the following:
- Market Cap
- How much is the coin being traded?
- The coin’s past track record
- The types of partners backing the project.
There is a lot of information regarding cryptocurrency online, but it is important to take everything with a pinch of salt. Many people are simply promoting their own crypto coins and others earn a commission for advertising certain cryptocurrencies. Instead, only pay attention to reputable platforms and websites so that you don’t get stung by bad press. If you have been scammed or forced to invest in something that you didn’t want to, speak to investment fraud lawyers to help recover your losses.