IF YOU WANT TO MAKE AS MANY AVOIDABLE MISTAKES INVESTING IN CRYPTO, IGNORE THIS!
I promised to share a few things you cannot afford to look over.
There are so many “do not dos” in the crypto industry – enough to leave you bewildered. One thing this industry is currently known for is its dynamism and rapid evolvement. If you’re not a constant reader or researcher, it’s difficult to stay updated with the changes happening in the industry.
Some things that were profitable 6months to 1 year back might not work any longer. For instance, if you profited from investing in ICOs in 2017 and cashing out upon exchange listing, attempting that right now will be akin to willingly giving away your money to scammers. It’s worthy to note that the model has shifted from ICOs (initial coin offerings) to IEOs (initial exchange offerings) to prevent investors from losing their hard-earned money to scammers who never launch their projects.
Getting knowledge will not completely keep you from making mistakes. However, there are avoidable mistakes you must not make. Reading further will help you identify some of them.
Stay away from IEOs: Earlier in 2019, we saw the IEO boom after the complete shift from the ICO model. Instead of independently handling their crowdfunding and token sale, new blockchain projects now run to credible crypto exchanges to launch their token and raise funds. Crypto exchange, Binance, saw its new IEO projects do a 100 to 500% spike upon listing within the first three quarters of 2019. These spikes were usually accompanied by heavy dumping on late buyers.
IEOs are new projects that are yet to deliver on their whitepaper or stand the test of time. They usually have no history investors can fall back to for technical analysis. Hence, there’s hardly any incentive for investors to hold except the project is solving a serious problem and the value is tied to the token. At best, these projects pump upon listing and get dumped by holders, crashing the price sometimes even way below the launching price.
Avoid Complexity: you don’t have to own so many wallets or actively use many crypto exchanges otherwise you’ll unnecessarily be dealing with different private keys and login details. You don’t want to spread your funds so much in different accounts that you can’t keep track of them.
Take the HODL mantra with a pinch of salt: some bitcoin maximalists in the industry might argue this to their satisfaction. Everyone has an opinion in the industry and you find out it’s all noise after all. It’s okay to cut your losses fast and rebuy at lower prices. A lot of people have seen the value of the money diminish horribly just for HODLING (a crypto slang for holding). The market respects no one’s opinion so you must learn to do your honest reviews and act upon your own guts.
I’ll share a few more in the next release. Sign up here so you don’t miss out on them.
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Miracle Nwokwu