Worst Cryptocurrency Investments Strategies To Avoid As A Beginner.

Hello steemians, today I would like to share my knowledge about some of the worst Cryptocurrency investing mistakes that you should avoid because beginners make these mistakes all the time and they can completely blow their cryptocurrency portfolios out of the water. I think it's really important that we support new people in the crypto space because it's healthy for adoption.

There are lots of people that will get burned when they are new in Crypto and that is not a good thing because it leaves a sour taste in people's mouths and in that way it gets spread. It is really important to support new people in the crypto world.

The first mistake that beginners coming into the crypto space tend to make is not doing the research. This can be in the form of listening to 1 to 3 different influencers and not actually doing some solid research themselves. This is a common mistake that you set to find beginners come into the crypto space after listening or watching some YouTube videos. One of these mistakes might be the direction of paying attention to an influencer who is shilling a particular type of coin that's incredibly of low value so it has a lot of potential to the upside at least that's how it's patched.

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It's important that when you start digging into these cryptocurrencies, you do a very good research on not only the price elements of a cryptocurrency but economics, the white paper, the team and their actual use cases. If you do these things properly this research can become actually a foundation to a good solid investment. Without that research you tend to find you’re investing in things that really have very little value and unfortunately there are many of them in the crypto space.

There are over 10,000 cryptocurrencies today and some of them were only ever created to part you with your hard-earned money so research is absolutely crucial and a part of that research absolutely has to be understanding what the cryptocurrency is up to what it plans to do in the future.For example; What the use case is, who are the team behind the cryptocurrency, the value of it today and the potential value of it in 5 to 10 years from now. These are the foundation levels of a good solid recession which will set you on the right path to investing in cryptocurrency.

Not diversifying your portfolio. It is an easy mistake or an easy trap particularly with the tribalism within the crypto space. Basically what I mean by this is putting all your eggs in one basket or betting that one particular cryptocurrency is going to be a success and it’s going to make you the 10 X or 100 X or whatever your strategy is.

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Diversifying is really important because you don't want to be putting your money all in one project. For instance, if you've got $1000 to invest in crypto, you'll be better off maybe if you just put 40% in one and then just split it out evenly across the other three for example at least you're hedging your bets.

Using leverage. This is unfortunately a poor strategy for all beginners which is something that's only better for advanced traders and even I personally tend to avoid leverage at all risks and ultimately I find it a little bit too dangerous.

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Basically to increase your exposure for shorting, if you think the price of cryptocurrency is likely to go down and likewise to purchase cryptocurrency if you think the price of the cryptocurrency is going to go up this means that you can multiply the factors of gains by let's say 10 to 100 times but also if you get it wrong you can multiply your losses by 10 to 100 times as well.

This is quite a common mistake that beginners tend to make if they get into leverage thinking that they can put $1000 in play with 100,000 and they think that things are going up or going down which I think is a gambling mentality. So the best kind of thing really for beginners in the space is to avoid using leverage and ultimately if you cannot afford to invest in cryptocurrency and you're relying on leverage that probably isn't something for you.

Thanks for following and I hope this information helps the newbies.

Keep steeming
@brayan256