1# Lack of patience

Being a victim of little or no patience, is a curse. Learn to hold your investment if you believe in the project. If you are trading (short-term), you can buy low and sell high in a matter of minutes. But let's say you invest in Bitcoin at 7500 $. The next week it drops to 5500 $. Most beginners (weak hands) would sell and lose 2000 $, only for Bitcoin to go up to 8900 $ the next month.

Warren Buffett, “the stock market is a device for transferring money from the impatient to the patient.” - Cryptocurrencies aren't that much different.

2# No     exit plan

Once you have invested in a project, you need to set an exit strategy, and stick to it, no matter what. Exclude your emotions. Here are two strategies:

1. Invest 1000 USD in a project you believe in. Once the project 3x (doubles three times) you sell out your initial investment and let the other 66 % ride into the sunset. You sell out the rest when you believe the project have reached all it can, or you absolutely need the money.

2. Invest 1000 USD in Bitcoin at 5000 $. Set your sell order at 50.000 $. This means that when Bitcoin hits 50.000 $, you sell your Bitcoin.

 

3# private keys

This might be one of the biggest mistakes there is. You should never store your crypto on an exchange. You should always transfer it to a secure wallet where only you have access to the private keys. If the exchange is compromised, you could lose your crypto.

Read more about private keys and wallets in our step 3: stay safe.

 

4# no Hard copy

I'm not asking you to store all of your passwords and backup keys on a word document, as this is pretty risky both in case of malware attacks, if your computer crashes or get stolen. I would recommend you write them all down, print them out and keep them in a safe place.

 

5# FOMO

Fear Of Missing Out. I've done this several times myself, and so will you. You should never buy into something that has already spiked. Today 12th of june, 2018, Coinbase released news that they would add Ethereum Classic (ETC) to their platform. The price might go up abit more over then coming days, the the profit is already made.

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6# wrong address

One of the more common mistakes, is sending your funds to the wrong address. Be sure that you always send Bitcoin (BTC) to a Bitcoin address. If you send Ehterium (ETH) to a Bitcoin address, your funds are lost. Always be sure that the public key is the correct one.

 

7# NOT DYOR

We cover this in step 4: research.

Do Your Own Research before you make an investment.

Doing your own research is one of the most common thing you'll come across in the world of cryptocurrencies. Here is an example on a twitter-user blaming youtuber "Sunny Decree" for losing his investment, after listening to him.

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