Bitcoin itself only has 40% -60% of total market liquidity because there are hundreds of altcoins, and this Altcoin correlates with Bitcoin. Not understanding this correlation will, of course, result in poor decision making. Investors who produce from crypto certainly understand this very well. When the market is down, usually Bitcoin will be more resistant to pressure compared to Altcoin when in 2018, Altcoin dropped 95% while Bitcoin dropped by 80%. Make sure you see the time frame of some coins that you will invest.
Airdrop is a free thing that you can get without spending a lot of effort. Most new projects will provide free airdrop coins as a marketing tactic to increase awareness. You may need to register on their website to get a free airdrop, but sometimes there is nothing that needs to be done to get an airdrop. For information about the airdrop, you can check Airdrop Alert.
Do not have preparations for fork
For some investors, hard forks can also be categorized as airdrops.
Also, make sure the wallet you use supports forks. Use Coins calendar to find out the latest updates about hard forks.
Rumors about this will circulate among the community about how this product will be made, the companies that will work with them and what exchanges will list this cryptocurrency.
To trust the news circulating
When the news comes out, most novice investors will enter the market where investors have sold their coins. Instead of just starting to buy coins when there is news circulating, you should buy coins when rumors are circulating in the community.
Do not prepare yourself for the bull market
When you believe that the cryptocurrency market is dead and sell all your coins, you have lost considerable profit potential. Because the bull market in crypto can occur at any time. It would help if you kept some of your coins in the wallet. Click here to know more about crypto engine bot review
The market sentiment you do not pay attention
If the market sentiment is quite varied, then so is the price. When you feel that rates can go up even more, sometimes what will happen is just the opposite. Then it would help if you still considered market sentiments when you want to invest in cryptocurrency. One example of sentiment is the sentiment associated with bitcoin halving.
Get no interest from your crypto
If you only store your crypto in a wallet or exchange, you miss getting interested. You can enter your crypto in crypto lending or Dapp (Decentralize App) crypto lending.
Lack of tax knowledge
Overtrading also increases the obligation you will pay taxes. Most investors think that they only need to pay tax on every profit they get from trading. When, in fact, they need to pay taxes on every crypto transaction that is carried out. Ignoring taxes and trading fees will indirectly affect your cryptocurrency investment strategy.
Lack of basic knowledge of cryptocurrency
It would be best if you learned some essential basics in the blockchain and cryptocurrency industry. As the definition of the blockchain and cryptocurrency itself to circulating and the total supply of coins that you want to buy. Learn more about exchange, wallet, private key and public key. Getting started is undoubtedly tricky, but there is a lot of information that you can get from sources such as books or the internet.
No action is taken
Every day many investors miss potential in cryptocurrency investments. Why do they often miss this promising potential? Because of not enough self-confidence and fear of making mistakes. Yet when you take action, you will get experience, and with experience, you will make better decisions later on.
Not familiar with the technology offered
The thing that makes bitcoin and other cryptocurrencies that looks interesting is the technology behind it. But if you don’t understand the foundation of the technology itself, your investment can be risky. Of course, you do not want to depend on other people’s knowledge of investing. But of course, you cannot necessarily search for anonymous information on the internet and trust it unanimously. You need to find a trusted educational source. Take the time when you understand block rewards, consensus algorithms, pre-mining, and other general matters.