AskLeo - What's Your "Top 3 Don't Do That" For a Newbie In Crypto?
If I had the mentality that I now have towards crypto, four years ago, I would have definitely got out of that massive bull run that I was part of, on a huge profit, rather than a huge loss. I completely screwed the parabolic phase of 2017.
I haven't played this bull market way better either, but I can clearly say I've become better at this. I have a few friends whom I brought to crypto and I always try and educate a bit these newbies before "releasing them to the wild".
There's a whole bucket of advice that I pour onto them before the step by step guidance that's supposed to help them put their hands on their first cryptocurrencies. I do have my top 3 words of advice that I emphasize on a lot.
First of all I wouldn't encourage anyone holding long term positions on exchanges. Whether BTC, ETH or whatever, if not planning on trading short term, store those on a software or hardware wallet. It's true that we didn't had much hacks lately when it comes to CEXs, but you know the saying...
Not your keys, not your crypto...
One of the major mistakes that many newcomers to crypto make is also leverage trading. I personally know someone that doesn't even know how the hell a blockchain works, but the guy is leverage trading on Binance, mostly on a loss.
I know it's tempting to jump on the speed train and take the chance of making life changing money over night, but as I commented on @toofasteddie latest post a bit earlier today, leverage trading is betting against the house. The house, in this case Binance, knows the cards of everyone at the table...
Who do you think will win?
The last don't do that on my top 3 for this post is "don't ever invest more than you can afford to loose and don't over diversify". It's true that we can only talk of losses when we hit that sell button on a crypto that we've bought way higher than the selling price...
BUT, being comfortable with any investment is a healthy mentality. Overdiversifying is also something I would not recommend, because that leads to changing positions too often and missing important rallies. That's probably my biggest mistake in crypto.
The best lessons are the ones that you have from your own experience, but sometimes it is better to have them served before you and learn from others mistakes. So...
What's Your "Top 3 Don't Do That" For a Newbie In Crypto?
Thanks for attention, Adrian
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