When you hear crypto stories about how people have turned little capital into six figures, it makes you think there’s something you are not doing right.
Researching topics like what’s the “best cryptocurrencies to buy” does not mean you are doing your own research (DYOR).
The reason is because you are reading another person’s opinion which can influence your buying decisions.
Here are some rookie mistakes to completely avoid if you are investing with little capital:
1) An Over-Diversified Portfolio:
It’s good to diversify your portfolio but over diversification means you are investing in a lot of coins at the same time.
By spreading your capital into too many coins, it thins it out and you don’t have enough capital to in the good assets to make significant gains.
Another reason to avoid over diversification is that it will be difficult to track and follow up with getting useful information to know when to buy or sell the assets.
A good idea for diversification is that it should be in proportion with your portfolio size.
Let me give you an example: if you are investing in $500, you should invest with 2 coins so that the gains are significant.
2) Using Too much strategies:
Just because you can make money from Trading, Investing, Nfts doesn’t mean you should do them all at the same time. Especially when the motivation is money related, it’s better to be successful doing one and then you can experiment with other
Doing too much is actually a bad strategy for building a balanced portfolio. Especially in trading, using too many indicators will make you feel exhausted when it’s not working.
Having a simple strategy that works is what is important
3) Buying crypto when it’s pumping:
There are investors who buy coins when they are pumping, or there’s a lot of attention around that asset.
When people are talking about a certain project and the price is going up this is not a good time to invest in that coin.
