{"id":123397,"date":"2021-05-01T20:09:11","date_gmt":"2021-05-01T20:09:11","guid":{"rendered":"https:\/\/precoinnews.com\/?p=123397"},"modified":"2021-05-01T20:09:11","modified_gmt":"2021-05-01T20:09:11","slug":"bad-experiences-of-crypto-investments-to-learn-from","status":"publish","type":"post","link":"https:\/\/precoinnews.com\/crypto\/bad-experiences-of-crypto-investments-to-learn-from\/","title":{"rendered":"Bad Experiences Of Crypto Investments To Learn From"},"content":{"rendered":"

Everyone wants to trade crypto because it\u2019s so lucrative. Though it\u2019s still new (only about a decade old), most people thought it was going to end within a few years, and it\u2019s just grown stronger.<\/span><\/p>\n

Therefore, you may want to invest in it now, but you aren\u2019t sure how to start. While you may have heard horror stories about crypto investors losing it all, those are just a few bad experiences. Every market has them. Remember the stock market crash in 1929? You may not have been there, but it\u2019s in the history books to remind us that nothing is perfect.<\/span><\/p>\n

Still, here are the top bad experiences that most crypto investors fall into and how you can avoid that situation:<\/span><\/h2>\n

I\u2019m Smarter than Everyone Else, So I Won\u2019t Make Their Mistakes<\/b><\/h2>\n

While everyone isn\u2019t going to fall into this line of thinking, most people do at some point. It\u2019s usually when they\u2019re starting out, and they have all that fresh knowledge about the crypto market. You may have done well in math and go perfect scores in all of your classes. In fact, you read up on the market and understand everything.<\/span><\/p>\n

The goal is to become an expert, but the problem is you may think you are one when there aren\u2019t any. Many investors fall into the trap when things suddenly click, and they understand how things are done. Still, that doesn\u2019t mean there\u2019s no room for advancement because there is!<\/span><\/p>\n

Trading isn\u2019t just what you know;<\/span> it\u2019s psychological<\/span>. Anyone can learn how to read indicators, make charts, and gauge the market cycle. However, you have to go a step further and learn the concepts to try them out.<\/span><\/p>\n

The challenge with accepting any market strategy is that they\u2019re all counter-intuitive to how a human thinks. You may want to buy, buy, buy, but good traders don\u2019t use that strategy. Doing that means you may avoid a particular cryptocurrency because it is new or unknown.<\/span><\/p>\n

Smart people often beat themselves when trading because they\u2019re resistant to using proven market strategies. You may think you\u2019ve come up with the perfect solution, but volatility is going to bring you down. We aren\u2019t saying that you should never test out something new, but you have to put in the study and research (indicators, charts, and market theory) to do well.<\/span><\/p>\n

Don\u2019t Join a Pump and Dump Group<\/b><\/h2>\n

A pump and dump (PnD) group is a platform that promises significant returns without any work involved. Many investors have tried this and failed miserably. Everyone wants that \u201cquick fix\u201d because it\u2019s in our nature to get what we can without much effort.<\/span><\/p>\n

Typically, these PnDs have low market caps, so they bump up the price quickly, and you think you\u2019re winning. You join a group to follow their \u201ccalls\u201d to get easy money.<\/span><\/p>\n

Unfortunately, that rarely happens. Most PnD groups work like this:<\/span><\/p>\n