Dan Schatt, CEO of the social-first crypto platform and marketplace Earnity, knows that information is always key to a buyer’s success. That said, despite the countless resources available online regarding cryptocurrency, some buyers still commit mistakes that can prove very costly.
Dan Schatt shares the most common pitfalls for crypto users.
Failing to do research
Before purchasing any cryptocurrency, you must do your due diligence and thoroughly research the asset. This includes looking into the team behind the project, the technology, the market opportunity, and more. Failure to do your research can lead to costly mistakes down the road.
Purchasing based on emotion
Another mistake that many buyers make is purchasing crypto based on emotions. When the market is going up, it’s easy to get caught up in the hype and put in money you shouldn’t. Similarly, it’s easy to panic and sell your assets too quickly when the market drops. It’s important always to take a step back and look at the big picture before making any decisions.
Not having a long-term outlook
When it comes to buying cryptocurrency, everyone should have a long-term outlook. This asset class is still in its early stages, and there’s a lot of volatility in the market. As a result, you will likely be disappointed if you’re looking to make a quick profit. However, if you’re patient and plan for the long term, you may be rewarded handsomely.
Failing to secure your asset
Earnity’s Dan Schatt reminds when entering the cryptocurrency game, always secure your assets. This means ensuring that your coins are stored in a safe and secure wallet. Many buyers make the mistake of leaving their coins in an exchange, which is one of the riskiest things you can do. If you don’t have a strong understanding of how to store your coins safely, it’s best to leave them on an exchange.