5 mistakes to avoid when entering the crypto market
To limit risks and unnecessary mistakes when "committing" In the field of venture capital investment like crypto, people should not ignore the following 5 mistakes to avoid.
Anyone who has been participating in the crypto market must have many "lessons"; precious. Lessons often come from mistakes during each person's investment process. In particular, new people are "a fat piece of fat" of scammers, projects full of "shill" smell and countless other problems.
5 mistakes to avoid when investing in Crypto
Fomo/Fud psychology according to project, price, trend
The first and most common mistake is FOMO (an acronym for Fear Of Missing Out), a psychological syndrome of fear of missing out on opportunities, often used in many markets such as stocks, foreign exchange, and crypto. ..
Meanwhile, FUD is an abbreviation of the three words Fear, Uncertainty, Doubt, which refers to fear, doubt and uncertainty about bad information spread from unknown sources.
Putting emotions into investing will easily make us "empty-handed"?
In fact, the more FOMO, the higher the risk. In the crypto market, investors need to think carefully before deciding to "deposit money" in a certain project or coin. But to promote investment, emotional factors will impact people more.
A project in a period of strong growth, a coin "pump", or a project funded by many KOLs are factors that influence the investor's decision-making process.
With the "flying" Strongly attracts many traders, FOMO psychology will turn investors' assets into a tool to create liquidity for profit taking by "fish", also known in the industry as "selling", leading to a system of The consequence is that many investors lose money because they buy at the peak price.
FOMO is not necessarily bad, but we should self-evaluate and choose potential projects based on guaranteed evidence such as Backer, Investor, core products... Don't "invest according to" When witnessing only one period of growth, everything needs a process, not just a temporary one.
Investment or speculation are both forms of profit, but effective investment depends on many factors from objective to subjective. What you need to do is to maintain your mentality when acting, be consistent and think carefully before FOMO. Fomo is right when we know it clearly, follow the crowd and don't get carried away.
“All-in” when investing
Capital management is considered the second most important factor in investing, especially in the crypto market. Many people have made mistakes and it's all because they haven't managed their finances well.
From the mentality of wanting to be quick - quick - quick, many people choose to invest all their assets at once (also known as All-in). This will cause them to miss many opportunities. If there is a risk, the total assets may be lost and even "fly away".
Newbies will often have the mentality of "play fast and win quickly" Therefore, the investment is not really effective, leading to losses as soon as it starts. In crypto, many traders have gone all-in long/short with all their capital hoping to receive quick account xx. As a result, many accounts were "burned", the total liquidation orders on exchanges were estimated from millions of USD to billions of USD.
To limit this mistake, people need to create an investment portfolio for themselves and allocate capital appropriately. Splitting the capital to DCA (Dollar-Cost Averaging) is one of the ways to allocate capital reasonably, an investment strategy to reduce impact. of price fluctuations in the market. Good capital management will help people not miss out on many other opportunities in the future.
Taking the market lightly: Making money in Crypto is easy!
Many people come to the market, even though they are just starting out, with the mindset of a winner. Crypto is a Zero-Sum game, in theory the winner's total assets will be equal to the total losses of other players. This means the loser's money will be transferred to the winner's pocket
There is nothing easy about any type of finance. Investing to make money has many potential risks. Having your own opinion is good, but the reality is sometimes not as imagined. There are many lessons when we are subjective. For the uptrend market, it is an easy opportunity to make money, but market fluctuations are unpredictable and the risks are very high. Some big fluctuations in recent times include the wave of ICO buying to divide, going to the exchange and being sold at a reduced price. The collapse on March 13, 2020 is also known as the "black swan" of crypto. At that time, BTC completely returned to 3,800 USD, collapsing more than 50%, causing many investors to suffer... Many people chose to leave the market at that time because of their subjectivity when investing and not taking precautions. risks when participating.
Before we begin, we need to clearly understand how the market operates. The nature of crypto is a game consisting of rules and players. The winner will have everything, which means the loser will "lose everything". Therefore, everyone needs to have the right mindset about investing and determine reasonable buying and selling points, more importantly, practicing patience to put profit/loss in the right place.
If you are new and looking for solutions to the above mistakes, you can refer to 2 courses Crypto 101 and DeFi 101.
Lack of investment knowledge
The cause of the fourth mistake mentioned in this article is a lack of knowledge when investing. Many people tend to speculate and chase immediate profits, forgetting to prepare themselves with knowledge.
In crypto, knowledge is not just simple information but also a "life-saving" tool; Helps investors make money, maintain their mentality, find hidden gems... in the market. One of the typical examples of making this mistake is using electronic wallets or registering accounts on electronic exchanges CEX, DEX.
Encourage everyone before participating to carefully learn how to use the wallet, the exchange and basic terms before "engaging" into Crypto. In addition, reading and viewing documents will help us improve our knowledge, expand our vision and understand the nature of the keywords we are interested in.
Some useful websites for investors: Coin98 Insights, Messari, The Block, Binance Research, Delphi Digital.
If you are new to the market, still struggling to know where to start, which one comes first and which one comes next... Coin98 has tips → The Newcomer section is at Home!
Subjective and deceived by scammers
The development of Crypto and Blockchain is profit potential for many individuals and investment funds. It is undeniable that the "fertility" in the market, but this is also a place full of scams for investors when they first join. 
- Fraudulent advertising.
- Impersonating support/admin/moderator teams proactively asking for support.
- Counterfeit exchanges & electronic apps.
- Ponzi (pyramid & multi-level scheme).
- Phone hacks (phone security attacks).
- Link to sell fake tokens.
- Congratulations message send fund to receive rewards.
- Fake Project Twitter.
- Suddenly received "strange" Has great value in the wallet.
- …
Everyone needs to be alert and self-aware of scams with keywords such as promising huge profits, asking for private keys, impersonating admins and actively texting, project teams with a history of fraud, preliminary project website. sai, etc.
Absolutely do not provide your personal information to anyone, including the project admin. In Crypto specifically DeFi, decentralization comes first, similar to the fact that no one can control you (the user).
Conclude
It is inevitable to make mistakes during the investment process, but hopefully this article will provide some knowledge to everyone. There are a lot of “sharks” out there waiting for the opportunity to take money from the "little fish" On the other hand, following the shark's lead or falling prey to the enemy is everyone's choice, which will affect future assets. You need to make the wisest choice when investing and say no to emotion.
Reading and discussing will help consolidate more useful knowledge in everyone's investment process. Coin98 encourages asking questions and participating in discussions in the general group.
