#TradingMistakes101

Here’s a breakdown of Crypto Mistakes 101—common errors that beginners (and sometimes even experienced investors) make in the crypto world, and how to avoid them:

🔐 1. Not Securing Your Private Keys

Mistake: Storing private keys or seed phrases in plain text (like screenshots, notes apps, or cloud storage).

Fix: Use a hardware wallet or encrypted offline storage. Remember: "Not your keys, not your coins."

📉 2. Investing Without Research (FOMOing In)

Mistake: Buying into a project just because it's trending or someone on social media hyped it.

Fix: Research fundamentals: the team, tokenomics, roadmap, and use case before investing.

📊 3. Overtrading

Mistake: Constantly buying and selling based on emotions or short-term movements.

Fix: Have a strategy. Stick to it. Avoid revenge trading or panic selling.

💸 4. Falling for Scams and Phishing

Mistake: Clicking on fake links, giving seed phrases to “support” reps, or joining sketchy airdrops.

Fix: Always double-check URLs. Never share your seed phrase. If it seems too good to be true, it is

🔄 5. Using Centralized Exchanges as Wallets

Mistake: Keeping large amounts of crypto on an exchange.

Fix: Move funds to a self-custodial wallet unless you're actively trading.

📚 6. Ignoring Fees and Gas Costs

Mistake: Transferring or trading small amounts and losing most of it to gas/transaction fees.

Fix: Understand the cost structure of the chain you're using. Layer 2 solutions often offer cheaper alternatives.

🧠 7. Poor Portfolio Diversification

Mistake: Going all-in on one coin or token.

Fix: Diversify across multiple assets and sectors (DeFi, infrastructure, gaming, etc.) based on your risk tolerance.

🕰️ 8. No Exit Strategy

Mistake: Holding indefinitely without knowing when or why to sell.

Fix: Set profit targets and stop-loss levels. Revisit your goals regularly.

📆 9. Tax Negligence

Mistake: Ignoring crypto taxes and getting blindsided by a huge bill later.

Fix: Track your transactions and stay informed about your local tax laws.

Dyor.