These are the worst crypto mistakes experienced investors recall on Reddit
Crypto trading is a roller-coaster that can both make you a millionaire and leave you broke with deep regrets. Learning from your own mistakes may be a little expensive if you deal with investment, so you’d better pay attention to what others have regrets about.
Sending crypto to the wrong address
Due to the irreversible nature of cryptocurrency protocols, transactions can’t be cancelled or reversed once initiated. At the same time, a crypto wallet address is a long string of random characters including upper-case and lower-case letters along with numbers. Some people may confuse addresses and send funds to a similar one. The senders would be lucky if they know the owner and can contact them about the mistake. Otherwise, say goodbye to your money. Besides, crypto wallets support certain tokens, so if you send an asset that is not supported, it will be lost as well.
Investing in a ponzi scheme or a scam
Common regrets are dealing with Bitconnect or falling for “rug pulls” such as Squid. Many Bitcoin and altcoin owners have also fallen victim to fraudulent schemes like BitClub Network, AfriCrypt, PlusToken, Quadriga, USI Tech, etc. Today, some existing projects are heavily criticised for reminding a ponzi scheme. For instance, SafeMoon is often called “pump and dump”, after its price shot up by over 20,000% to quickly fall down over 75% from that all-time high. Besides, this crypto project discourages selling and has its CEO reportedly owning more than 50% of the coin’s liquidity.
Not striking the iron while it’s hot
Many crypto enthusiasts regret not investing in solid cryptocurrencies like BTC and ETH while they were cheap. Most people didn’t believe in the crypto potential until the main crypto got too pricey to buy. At the same time, that doesn’t mean that the price of Bitcoin will not rise significantly again over the next 10 years, so perhaps investing in BTC or ETH now will bring even bigger gains. Besides, most Reddit users wish they had started trading crypto sooner, as it’s a very promising industry.
Not holding crypto long enough
Major crypto gains wait for those who hold their tokens for long enough instead of reacting to every market move. Many crypto investors had “paper hands” which means selling at a loss when it would have been much more profitable to just HOLD on for another few months, not to mention years (like in the case with BTC). Hence, it’s better to thoroughly research the token before investing and not rush with selling.
Losing passwords and cold wallets
Perhaps, everyone knows the story of a man who accidentally threw away his hard drive with thousands of BTC stored and had been unsuccessfully trying to access the landfill site for months. However, people don’t only lose physical crypto storage. They also mistreat passwords, forgetting them, making screenshots that get stolen later, etc.
Giving scammers access to your wallet
Scammers may airdrop suspicious tokens to lure you into connecting your wallet to their fraudulent websites, and steal both your personal details and funds. Phishing contracts may also be disguised as genuine NFT dApps, so check the links at least twice before clicking on them.
Being guided by FOMO
Social media hype brings up the anxiety that an exciting crypto trade may currently be happening elsewhere without your participation. Thus, many investors blindly rush to meme coins, buy and sell reacting to every piece of news, celebrity endorsements, influencer tweets, etc. In hindsight, they see it was most often a waste of money. Checking charts multiple times a day and day trading only increases anxiety and doesn’t allow you to make wise decisions.