Top Mistakes Investors Make in Crypto
The fact that some investors are in the top 5 in terms of volume in the world's largest cryptocurrency exchanges reveals the size of the investments made in this area. Almost every citizen of the world over the age of 18 has become a member of exchanges such as Binance, Coinbase, FTX, Gate.io and Huobi by performing KYC. In the past, the interest in foreign betting sites has now been replaced by cryptocurrencies, and the hope of getting rich more easily.
Investors, who invest quickly with the information they hear from the environment, without doing sufficient research and without knowing, sometimes make serious mistakes by being caught in FOMO, sometimes from the top of the uptrend, sometimes without noticing the downtrend, and sometimes by investing in uncertain projects and stock markets.
Even the main news bulletins are about victims who lost all their money and whose family life was disrupted because of Bitcoin. Their number is not insignificant. That's why today we told you about the mistakes that investors make the most in the world of crypto money. We hope that these mistakes will not be repeated, that hard earned money will not be easily lost!
- FOMO (Fear of Missing Out)
FOMO, which has settled in the economics literature as an English term, is the fear of missing out on the most understandable expression. Investors see a rising chart for stocks, gold, currencies or the more popular cryptocurrencies in an uptrend. They hear professional or amateur people around them talking about this opportunity. They do not want to miss the opportunity by buying a coin that is increasing in value immediately. However, since it is not clear where the trend will return, that is, it is not clear where the buyers will start selling, the coin/token you buy will suddenly start to decrease.
Another example of FOMO is when a token bought at a low price is in an uptrend, but not realizing profits. While rising, it is necessary to make profit sales at certain intervals. However, an amateur investor does not want to sell it, thinking that the coin he bought has not yet reached the ceiling. This means losing potential high returns.
- Buying Coins Without Research
This is one of the mistakes made not only by some investors, but also by amateur crypto lovers from different parts of the world. There are hundreds of thousands of investors who have not yet completed their development, and whose roadmap is not clear, by buying the tokens from the pre-sale and later becoming victims. The best and closest example of this is the SQUID token, which was created after the Squid Game series ended. People invested in this coin because it was a popular name and was paired with the series, but one night the coin fell to 0 from the price it rose and disappeared with its creators.
- Investing in Unsound Stock Markets
Since our topic is crypto money, we will not talk about Çiftlik Bank, but a scandal similar to this victimization was created by the stock market called Thodex. Thodex, which is known as a Turkish crypto exchange, gathered many investors and closed the panel overnight by selling millions of dollars from the exchange panel, disappeared after its owner fled abroad.
While the world's largest stock exchanges are standing still, while licensed and reliable Turkish stock markets are standing, you should stay away from exchanges that are opened under different names, such as a pyramid scheme, that first distribute rewards and recruit users.
- Falling into the Pump Game of Phenomena
Not only some crypto phenomena, but also foreign phenomena with 500 thousand and 1 million followers, by sharing the coins they bought before, after a certain period of time, on their profiles, causing their followers to buy. Amateur investors who think that a large audience will buy and raise this coin immediately buy this coin.
However, the famous phenomenon with many followers suddenly sells the coins in his hands when the coin he owns rises by 10% or 15%, and while it rises, the price of the coin drops before the buyers can sell it. This creates hundreds of thousands of victims.