📉 1. FOMO Buying (Fear of Missing Out)
The Mistake: Buying impulsively during hype when prices are at a peak.
How to Avoid:
Stick to a predefined strategy (e.g., dollar-cost averaging).
Don’t chase pumps; wait for corrections.
Research before reacting to social media or influencers.
📚 2. Ignoring Research
The Mistake: Investing in coins without understanding the project, team, or use case.
How to Avoid:
Read whitepapers and check the project's website.
Look at the team, roadmap, community engagement.
Use trusted sources like CoinMarketCap, Binance Research, or Messari.
🛡️ 3. Poor Risk Management
The Mistake: Going all-in or investing more than you can afford to lose.
How to Avoid:
Diversify your portfolio (don't put all in one coin).
Use stop-loss and take-profit strategies.
Never invest borrowed money or emergency funds.
⚖️ 4. Using Leverage Without Understanding
The Mistake: Using margin/futures trading without knowing the risks.
How to Avoid:
Avoid leverage unless you're experienced.
Start small if you must, and fully understand liquidation risks.
Practice using testnets or paper trading before real funds.
🔐 5. Not Securing Their Assets (e.g., 2FA)
The Mistake: Getting hacked due to poor security practices.
How to Avoid:
Enable 2FA (Google Authenticator > SMS).
Don’t click on suspicious links or download unknown apps.
Use a hardware wallet or trusted self-custody wallets.
Keep backup codes and passwords safe (offline).