New investors in the cryptocurrency world, beware of pitfalls!
When I first entered the cryptocurrency world, I naively thought—that as long as I picked the right "coin that will rise," I could get rich overnight.
Later, I realized that what really determines whether you can make money is how many pitfalls you can avoid.
Below are five common major pitfalls I personally experienced and summarized as a newbie in the crypto world👇 ⸻ ❌ 1. Listening to "teachers" calling trades, only to become a "loser" Many so-called "teachers" in groups appear to lead you to profits, but in reality, they profit from your orders through commissions or preemptively set you up for losses. Keep in mind that if "teachers" could make money, they would have already made their families wealthy, instead of bringing you along?!
Suggestion: DYOR (Do Your Own Research), don’t blindly follow trades! ⸻ ❌ 2. Jumping into contracts right away and ending up liquidated Newbies are easily tempted by high returns, using leverage to chase prices up and down, ending up with a mess.
Suggestion: Start with spot trading, understand the basic rules before considering contracts, don’t gamble your life from the beginning. ⸻ ❌ 3. Going for cheap deals at unknown exchanges and getting hacked Seeing low fees, but in reality, the exchange is not legitimate; once withdrawal difficulties arise or they disappear, you won't even have a place to file a complaint. Shady exchanges cause serious harm!
Suggestion: Only use major exchanges like Binance, OKX, etc. (preferably with a safe entry that offers commissions) ⸻ ❌ 4. Believing every rumor and blindly chasing trends Seeing a certain coin suddenly rise by 10%, everyone in the social circle is talking about it, rushing in immediately, only to buy at a high point and stand there.
Suggestion: Trend ≠ Opportunity, always have your own judgment, don’t be the last one holding the bag. ⸻ ❌ 5. Being fooled by "xx coin will skyrocket soon" and investing in a scam coin Scammer coins have no projects, no teams, no use, relying only on a bunch of people calling trades and making empty promises, resulting in a mess.
Suggestion: Check the background of a coin first, team + white paper + practical application are all essential. ⸻ 💡 Finally, here’s a piece of advice for every newbie in the crypto world: "The money you earn is the monetization of your understanding; the money you lose is the tuition for your understanding." You can take it slow, but don’t rush blindly; you can start with small funds, but be aware of safety. Newbies should not fear being slow, the most frightening thing is being blind!
