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Cryptocurrency mistakes to avoid when investing – Ian Mausner 

Cryptocurrency mistakes to avoid when investing – Ian Mausner 

Cryptocurrency has seen its all-time high popularity in recent years. However, analysts are divided since few are inclined to consider the crypto world as the future. Despite the conflicts, investments are flowing in from institutional funders and corporations and have raised the investment bar in the crypto world. At the same time, some elites believe that the bubble is going to crash down anytime soon. 

Ian Mausner mentions that the crypto world is speculative, unlike currencies, stocks, and other valuable assets, and the prices are directly associated with market trends. Even though crypto analysts are discovering dependable indicators of the usage and demand of the blockchain strategy to find the worth of the cryptocurrencies, it is not apparent whether buying or selling the digital asset constructed on technical elements is sensible. Measuring future staging via fundamental elements is popular. However, any method adopted by investors can increase portfolio losses if the basic guideline remains unfollowed. 

Below are a few drawbacks that you should steer clear from while investing in the crypto world

It is not cheap even if it gets priced low 

There is a variety of crypto coins emerging while having no utility or acceptability. Investors are spending on these crypto coins merely believing that these will also transform into million-dollar bets. For the same reason, people purchased the newly inspired digital assets in bulk. In simpler words, a lower rate does not translate into the coin getting traded at a discount. A lower rate only reflects the actual worth and demand of the cryptocurrency. 

Hundreds and thousands of crypto coins traded at cheaper rates eventually disappeared due to a demand reduction, generating losses for those who became primary adopters. Avoid investing what you would mind losing. Investments are primarily concerned with losing and winning. It is unwise to pull out other investments to buy cryptocurrency. But, you can reduce losses if assets get allocated strategically, keeping in mind your risk tolerance level. 

Letting go of previous investments can prove to be financially complicated for investors

It is best to allocate a smaller percentage to cryptocurrency while keeping intact continued long-term investment.

Purchases based on prediction 

Ian Mausner believes that making purchases based on prediction is by far the most negligent mistake amateurs can make. And it often results in investors buying high and selling low. People new to the industry only ride the trend, disregarding the future probabilities of the digital asset. Even the elements that may drive the coin’s worth higher often get neglected. The crypto world is highly volatile, and it is challenging to speculate price movements in the future. 

Betting all your money on one horse      

Betting all money on one horse is another mistake made by beginners. It would be ruining your wealth to only invest in one coin; going all-in can also worsens your investment plans in the future. If cryptocurrency is your game, try considering multiple investments on a variety of strategies says Ian Mausner. Diversification in the portfolio is a classic strategy to diminish the risks of significant losses.

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