5 worst advice for new crypto investors.
The crypto industry is a fast-growing industry. There is so much going on, and new information springs up every day. There are a million and one voices offering tips, resources, and advice on how to invest in cryptocurrencies. Some of them could be life-changing and informative for new crypto investors. Nevertheless, there will always be a few that are more destructive than helpful. It is just like walking into a busy market. Some traders will offer you solid products with practical advice on how to use them. Others might provide you with fraudulent products and accuse you of creating any defects you might find.
This makes it very frustrating for new crypto investors trying to learn about crypto assets and how to invest in cryptocurrencies. This is why we created our Telegram community to keep our people informed on what’s going on in the world of crypto. You can be a part of our community of crypto enthusiasts and learn about how the crypto industry works.
We have researched and uncovered five of the most harmful pieces of advice for new crypto investors about crypto assets and how to invest in them which we have listed below.
Buy it! It’s endorsed: Celebrity endorsements are a helpful way to get informed about the benefits of upcoming or existing cryptocurrencies in the crypto industry. Especially when the celebrity supporting a coin is an influencer in the crypto space with vast success and experience. However, just because they are telling you about specific crypto assets doesn’t mean that you should act without doing your own research.
Celebrities are people too, which means they can make mistakes like anyone else. It’s not enough to take any celebrity endorsed crypto asset at face value and forget that some steps should be taken to have a more balanced view. One of the things you should look out for when planning to invest in cryptocurrencies is liquidity. We’ve written an extensive article for new crypto investors about liquidity and how it works with crypto assets that you can find here.
It’s very cheap, so it’s perfect: Except if you come from a super-rich home, you’ve most likely felt the impact of inflation sweeping the globe. People are losing their buying power as their fiat money loses value. Luckily, there are some inflation resistant cryptocurrencies, such as Bitcoin, that you could exchange or swap your fiat currency for on ValorExchange. Deciding to Invest in crypto assets like Bitcoin that are inflation resistant and could help preserve your buying power is a good reason to invest in crypto. However, some crypto investors buy shady cryptocurrencies because they’re being sold for pennies. This is a highly risky strategy and could lead to the loss of funds.
Although, don’t get us wrong. There are some fantastic cryptocurrencies that you can get for way less. For example, ValorExchange allows you to exchange your fiat currency or anything of value for Bitcoin, Ethereum, and USDT. You can exchange as low as N1,000 on the platform with Zero added cost.
Bitcoin (BTC), Ether (ETH), and Tether(USDT) are the biggest cryptocurrencies in the industry with a wide range of applications, although that can’t be said about all cryptocurrencies. It’s essential to keep these things in mind when planning to invest in cryptocurrencies.
Don’t buy the dip, buy the top: The cryptocurrency industry is highly volatile, and the prices of cryptocurrencies reflect that daily. The dip refers to a period whereby the price of a crypto asset is lower due to certain factors. For example, You could invest in crypto assets like Bitcoin on ValorExchange when it’s down and claim the difference in profit when it goes back up in price.
Buying the top refers to buying that same Bitcoin when it has reached record-breaking heights in terms of its price. This could be dangerous for crypto investors who are unfamiliar with the way the market works. Cryptocurrencies like Bitcoin have an excellent history of bouncing back up after their price drop. However, specific record-breaking price peaks might take longer for it to reach and surpass. This would require patience from the crypto investor, or they might panic and sell their crypto assets before it reaches its peak.
Social media told you so: Social media is a blast! Just be careful about the investment advice you get from random posts as some could be misinformed or deliberately false. We ensure that we inform our telegram community with the latest and most relevant information about the crypto industry. We have updates specifically for new crypto investors on how to invest in cryptocurrencies easily. You can join the community by clicking here.
The market is crashing so sell now!: The market is volatile, and crypto prices fall and rise every day. Instead of panic selling your cryptocurrencies, you can exchange your crypto asset for Tether (USDT). USDT is a stable coin designed to maintain a particular price regardless of the nature of the industry. One USDT is equal to $1. You can convert your Naira, dollar, etc., for USDT for free on ValorExchange.
Hopefully, this article has given you a clearer idea about what you shouldn’t do when you plan to invest in cryptocurrencies. Furthermore, if you know anyone who could benefit from this information, share this article with them by clicking on any social media icons below.