It can be very exciting to invest in cryptocurrency. This usually results in making mistakes when investing and trading in cryptocurrencies. These mistakes can cost investors a great deal of money. To combat this, we’ve listed a few common mistakes individuals can avoid when investing in cryptocurrency:
Fear of Missing Out (FOMO)
This is a psychological force driving incidents to make impulsive decisions. In cryptocurrency, FOMO lets investors purchase skyrocketing assets hoping they wouldn’t miss out on further gains. The result is an impulsive purchase at a market cycle top leading to losses when prices correct themselves. Let’s take an example, after an individual checks Litecoin price and discovers a hike, in hopes of not missing out on the hike, they conduct a buy without proper strategy or research.