Following the boom in interest we saw in crypto in 2021, it will not be surprising if we don’t see a massive rush of interest in digital currencies in 2022. However, with these will come a lot of pitfalls and easy crypto mistakes that need to be avoided. Here are some of the things that you will need to know if you want to have success in the world of crypto this year.
Going all in
One of the biggest crypto mistakes you can make is choosing to go all in. There are many exciting opportunities out there for those willing to chase them, but there is also still not much of an indication as to whether cryptocurrencies are viable long-term investments.
It is too easy for you to put all of your money towards crypto only for the market to crash and you to be left with nothing. It is a volatile and somewhat speculative market, and you have to be willing to take on some of the challenges that come with operating in such an area.
Not having a strategy
Not having a strategy when trying to trade crypto is nothing short of a mistake. You need to ensure that you have a plan for what you wish to do with your crypto. Are you going to be holding on to it with the aim of creating a long-term portfolio? Do you want to purchase a lot and then trade it on?
Make sure that you have a set of goals in mind for what you want to do with your crypto, and then make a strategy that will help you get there. You need to make sure that you have thought and purpose behind every action in these markets – simply trusting your gut and buying or selling intuitively will mean that you run into errors pretty quickly.
FOMO
FOMO, or fear of missing out, can be a big factor that leads to people making crypto mistakes. There is always a new hot crypto that seems to be taking off. Whether it is getting a shoutout from Elon Musk or just gaining a lot of traction amongst traders, it can be tempting to jump in and get a slice of the action.
Of course, that does mean that you run the risk of getting caught up in a scam. There are so many people out there who are just trying to use crypto as a way to scam people and separate them from their hard-earned cash. If a scheme seems too good to be true, and there are calls from all sides for you to get in on it before it is too late, you have to ask yourself if it is really worth it.
No research
No matter how much you choose to engage with crypto, you need to make sure that you are doing an adequate amount of research so you understand the markets. Whether you are an affiliate manager for a crypto trading platform or just someone with an interest in what these trades can offer, you need to make sure that you understand your chosen currencies.
There are influencers all over the internet who are pushing narratives about crypto that are not necessarily the most truthful. Whether they are advocating for a currency that is actually a scam or pushing one that isn’t performing too well, it is easy to fall for their tricks if you don’t know what you are doing. Your own research will be vital if you want to have any level of success. Everything from the currency you use to the exchange you prefer needs to be accounted for.
Ignoring 2FA
With so much money floating around the world of crypto, it is unsurprising that it attracts hackers and other parties who want to try to steal your funds. Though your wallet should be secure in theory, you need to make sure that you have 2FA, or two-factor authorisation, in place to help protect your wallet.
Most authentication programs send a text to your phone, so the hacker won’t be able to get into your wallet unless they have access to both your account and your phone at the same time. It is a simple but effective way of dealing with this issue.
These are just some of the common pitfalls that might lie ahead of those who wish to trade crypto in 2022. Crypto mistakes are easy to make, but can be costly to overcome. If you are trading yourself, make sure that you research and strategize carefully.
If you are a crypto affiliate manager, make sure that you are not pointing your affiliates to leads that might not be the best option for them and their audience. Our agency can help with some of the finer details of your program management, giving you the time and resources to ensure that your knowledge is always up to date. With a good base of knowledge, we should all be able to avoid crypto mistakes in 2022.
