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The Top Ten Cryptocurrency Blunders: A Must-Read Guide for All Investors

The Top Ten Cryptocurrency Blunders: A Must-Read Guide for All Investors

Are you eager to maximize your returns in the cryptocurrency market? If so, it's crucial to avoid common pitfalls that could lead to significant financial losses. This comprehensive guide will delve into the ten most critical errors crypto investors often make, which can result in substantial monetary losses. By understanding and avoiding these mistakes, you can ensure that your investments not only avoid unexpected setbacks but also thrive, leading to significant profits that can potentially change your financial future.

#1. Not Doing Your Own Research (DYOR)

One of the most common blunders for investors is the lack of thorough research before diving into an investment opportunity. It's easy to get excited, especially when a friend boasts about a lucrative altcoin investment that promises astronomical returns. However, it's essential to avoid getting caught up in the frenzy and instead take a step back to educate yourself. 

This includes learning about reputable exchanges, secure cryptocurrency storage, and tax implications, as well as delving deeper into the specifics of individual crypto projects. By conducting your own research, you are taking control of your investments and empowering yourself with knowledge.

When evaluating research and projects, two crucial factors come into play. Firstly, verifying the project's authenticity and examining the token distribution is essential. To accomplish this, CoinmarketCap or CoinGecko can be used to analyze the coin or token. Delve into the data, focusing specifically on the price movement and trading activity. The trading volume should be substantial, indicating genuine interest and market participation. Additionally, the token should be listed on at least one reputable exchange.

Source: CoinGecko

With the basics covered, it's time to delve into more in-depth information from secondary sources. Explore cryptocurrencies on websites such as Messari, Binance Research, and CoinBureau, which provide comprehensive introductions to projects, their core teams, and objectives. Be sure to examine the profile section on Messari, which offers valuable insights into a project's background, token distribution, and other essential details.

It is essential to consider how tokens are allocated. It is favorable when tokens are distributed broadly among the community, indicating a healthy sign. Conversely, it raises concerns if a small group, often the founders, possesses most of the tokens. Additionally, it's essential to investigate the backgrounds and credentials of the founder, CEO, and other key team members. Videos featuring these individuals can provide valuable insight into their expertise and vision.

Source: Markethive.com

Previous interviews offer valuable insights into their progress in realizing their goals. Also, if they conduct regular meetings or webinars open to the public, it indicates transparency. Another key indicator of their credibility is their ability to follow through on their road map. At this stage, you should have gathered sufficient information to assess the project's authenticity and potential for long-term success.

#2. Opting For Inadequate Crypto Exchanges

Choosing the right exchange is a make-or-break decision. Many beginners and experienced cryptocurrency users fall into the trap of selecting the wrong exchange platform. The severity of this mistake can vary greatly, but it's crucial to start by verifying the exchange's authenticity. Unfortunately, many individuals are deceived by fraudulent crypto exchanges, underlining the need for vigilance in this crucial step.

Exercise caution when encountering sponsored advertisements for cryptocurrency exchanges, even when they appear on trusted news websites. Conduct thorough due diligence. Look into online discussions on Reddit, X, Bitcointalk, and other forums to see what users say about their experiences with these exchanges. 

Additionally, investigate the exchange's leadership, including the founders' backgrounds and the company's history. Just as you would carefully vet individual cryptocurrency projects, it's crucial to apply the same level of scrutiny when evaluating exchanges, particularly those that are less well-known.

Next, ensure the exchange aligns with your investment approach. This involves checking if the exchange provides the specific tokens you want to purchase. Most exchanges will meet your needs if you focus on investing in well-established large-cap tokens. However, if you're interested in smaller-cap tokens with greater risk but the potential for high returns, you'll need to be more discerning in choosing exchanges.

While specific cryptocurrency exchanges boast an extensive catalog of digital assets, others, like Coinbase, have a more limited selection, comprising only a few hundred options. Nevertheless, Coinbase's strict adherence to regulatory standards as a publicly traded company in the US ensures the implementation of rigorous security protocols. This sets it apart from many other exchanges, which lack similar oversight and may not inspire the same confidence level.

Beyond security and coin allocation, consider whether the exchange's features align with your trading style. As a beginner, you may prefer an exchange with a user-friendly interface. If you're more seasoned, verify that the exchange offers the advanced trading features you need. Many exchanges cater to diverse skill levels by providing basic and advanced platforms, but exploring your options is essential to finding the best fit.

Finally, ensure the platform you consider using accepts your currency and does not charge excessive trading fees. High fees can ruin a successful trading day, especially when more affordable options are available.

#3. Impulsive Decisionmaking With No Strategy

The third mistake to avoid is entering the crypto market without a strategic approach. As the saying goes, 'Failing to plan is planning to fail.' This adage holds particularly true in crypto, where impulsive decisions often lead to regret. By establishing a well-thought-out strategy, you can confidently navigate the market, making informed investment choices rather than relying on chance. With a solid strategy in place, you can feel secure in your decisions and confident in your ability to navigate the market. 

A solid strategy serves as a guiding framework, protecting you from making rash, emotional decisions and keeping you on track despite the influences of fear, uncertainty, and doubt (FUD) and the fear of missing out (FOMO). With a robust strategy and the discipline to stick to it, you can progress steadily without getting derailed.

Crafting a winning approach requires a tailored plan that suits your unique needs. Some general principles can serve as a guide. Start by setting clear and measurable goals rather than vague aspirations. Consider your comfort level with risk when setting these goals. For instance, someone in their early years without family responsibilities may be more inclined to invest heavily in cryptocurrency, whereas someone older with dependents may take a more cautious approach.

Regarding your cryptocurrency investments, you need to determine your comfort level with risk. Will you diversify your portfolio with smaller, more volatile altcoins, offering more significant growth opportunities but with higher uncertainty, or play it safer with established large-cap coins that provide more stability but limited upside? Additionally, should you hold onto your investments for the long term (HODL) or engage in active trading? This decision ultimately hinges on your personal risk tolerance and the trade-offs you're willing to make between security and potential returns.

Regardless of your investment approach, remember this crucial rule: never put in more money than you can comfortably part with, and refrain from taking on debt to fund your investments—it's simply not a risk worth taking. New investors, in particular, should resist the urge to amplify their bets with excessive borrowing, such as crypto leverage trading. Additionally, be sure to cash in on your gains periodically. Failing to do so is a common pitfall, so make it a deliberate part of your strategy, and you'll be grateful for it in the long run.

#4. Relying on a Centralized Exchange Instead of a Personal Wallet

Fourth on the list is a crucial security oversight: neglecting to self-custody one's crypto. To clarify, self-custody means having complete autonomy over your cryptocurrency by storing it in a personal wallet that only you can access and control. This approach is akin to keeping your physical cash in a personal safe rather than relying on a bank. For optimal security, self-custodial wallets are the recommended choice. Newcomers to the crypto world may wonder why they shouldn't simply store their funds on a centralized platform like Coinbase, Kraken, or KuCoin, but there are important reasons to avoid this approach.

Keeping some of your assets on these platforms for easy trading might be practical. However, there are risks when entrusting your assets to third parties online. Trusting the entity you are dealing with is essential, as some dishonest individuals are in the industry. A recent example is Sam Bankman Fried, who was once highly regarded in the crypto world but ended up causing significant financial losses to many. As a result, it's imperative to exercise extreme caution when dealing with online asset storage.

A second drawback of centralized exchanges is that, regardless of their trustworthy nature and rigorous security measures, they can never provide a guarantee against cyber-attacks. The cryptocurrency industry has witnessed a staggering $2.85 billion in losses due to theft from various exchanges and custodial services since 2012, demonstrating that no platform is entirely immune to breaches. Not even significant exchanges like Binance are immune, as evidenced by a hack they experienced in 2019 despite their robust security measures.

Cryptocurrency exchanges are attractive targets for cybercriminals due to the potential for substantial financial gains if their security measures are compromised. Malicious individuals seeking to take advantage of vulnerabilities in these platforms constantly threaten them. Additionally, regulatory uncertainties pose a risk for exchanges, as they may be subject to sudden closure or asset seizure by government authorities. An example occurred in 2021 when South Korea closed down 11 exchanges allegedly engaged in fraudulent activities.

Finally, there is a perpetual threat of financial collapse and insolvency. In such a scenario, users' assets could be at risk. The likelihood of this increases if an exchange fails to perform regular proof of reserve audits. Therefore, it is not advisable to keep assets on exchanges. Due to these concerns, the risks associated with storing assets on exchanges outweigh any potential benefits. As Benjamin Cowen, CEO of Intothecryptoverse.com, aptly puts it, "Treat exchanges like public toilets. Get in, do your business, and get out.”

So what should you do instead? You need to self custody your crypto by holding a non-custodial or self-custodial wallet. Non-custodial wallets are a broader category encompassing various wallets where users control their private keys. A non-custodial wallet can be browser-based or software-based, like Trust, Solflare, or Exodus, where users control their private keys. Although the wallet provider still bears some responsibility for safeguarding your assets, you have ultimate authority over your cryptocurrency.

Self-custodial wallets are a type of non-custodial wallet in which the user has complete control over their private keys and is responsible for managing their funds. They are hardware wallets like Ledger or Trezor in which the user has complete control over their private keys and is solely responsible for securing their assets. In both cases, the user controls their private keys and manages their funds. Still, the level of control and responsibility can vary depending on the type of wallet.

#5. Neglecting To Back Up Seed Phrases and Passwords

Another common security mistake is neglecting to create backups of seed phrases and passwords. A seed phrase is a set of words your cryptocurrency wallet generates and serves as the master key for managing and retrieving your funds. In the event of device failure, loss, or theft, your seed phrase is the only way to regain access to your assets stored in the wallet. 

Storing physical copies of your seed phrases and passwords may seem inconvenient to some people. However, considering the importance of safeguarding your finances, it is essential to prioritize security over convenience. It is crucial that these backups are kept in a tangible format. Avoid saving seed words digitally on your device at all costs, as this dramatically increases the risk of your cryptocurrency being stolen by malware or cyber criminals.

Consider choosing between a paper backup method or engraving the information on a steel card for added security. Ensure that you store this vital information in a secure location. Additionally, take into account the security measures for your cryptocurrency exchange accounts. Implement two-factor authentication, and remember to store the backup codes needed for account recovery securely. Losing access to your phone can lead to being locked out of your account, resulting in a cumbersome verification process to regain entry. Prevent this potential hassle by documenting and safeguarding the codes along with your seed phrases in a secure container or safe.

#6. No Risk Management Plan

Effective risk management is essential for achieving long-term success in the crypto market. It is commonplace to become impulsive and deviate from your initial investment strategy. Staying composed during a bullish market is crucial to avoid making hasty decisions. Therefore, having a risk management plan tailored to your investment approach is vital.

A crucial rule of thumb for all investors is investing only money you are comfortable potentially losing.  If you're an active trader, consider implementing risk management strategies such as stop-loss orders and profit-taking limits. These tools enable you to lock in gains when the market is favorable and limit potential losses when it turns sour. By doing so, you can avoid the need for constant market surveillance, providing peace of mind and a more hands-off approach to investing.

When managing risk, adopting a cautious mindset that extends beyond trading to include withdrawing your assets, also known as off-ramping, is essential. Many fall prey to a common mistake: sending funds to the wrong blockchain via an exchange. This mistake is easily preventable, but it can have irreversible consequences, and even with the help of wallet providers or exchanges, rectifying the situation is not always possible and can be highly stressful. To avoid this, take the precautionary step of sending a small test transaction to confirm the successful funds transfer. While this will incur some gas fees, it's a minor cost compared to the potential risks involved.

#7. Falling For Scams

Be cautious of fraudulent schemes, which are a significant concern in cryptocurrency and are closely related to managing risks. Conducting thorough research and remaining vigilant are essential to avoid falling prey to such schemes. Adopt a skeptical mindset and stay alert to potential red flags. Empowering yourself with knowledge of common fraudulent tactics is key to protecting your investments.

Some typical fraudulent schemes include Ponzi schemes, which rely on flimsy foundations and promise high returns but fail when new investments dwindle. Scammers may also attempt to attract victims to questionable investment platforms where funds are deposited but never returned. Another tactic is phishing attacks, where fraudsters create fake websites or emails to deceive individuals into revealing confidential information like private keys or wallet passwords.

Another insidious practice is pig butchering, a deceitful scheme in which individuals build a fake online connection with their targets and then manipulate them into divulging sensitive financial details or transferring funds. This deceptive tactic, akin to the tactics of the "Tinder Swindler," is prevalent in financial fraud. Moreover, cryptocurrency scams frequently exploit the influence of celebrities, using their images and names to deceive unsuspecting followers. Falling prey to such scams can have devastating consequences, not only draining your finances but also taking a heavy emotional toll on your well-being.

#8. Falling For FOMO 

The following three mistakes are rooted in emotional biases. Although intuition has its place in some regions of life, it's essential to separate emotions from rational thinking when making investment decisions. The fear of missing out (FOMO) is a common psychological trap, and it can cleverly manipulate investors into making impulsive choices.

Theodore Roosevelt once pointed out the negative impact of comparing oneself to others on happiness, quoting, “Comparison is the thief of joy.” “This concept can also be applied to investing. During times of positive market trends and when your peers are succeeding, it can be tempting to abandon one's investment strategy and lose focus.

The proliferation of social media has exacerbated the problem, as overnight successes and compelling forecasts of price surges create unrealistic expectations. For instance, many individuals were convinced that Bitcoin would soar to $100,000 during the previous market upswing despite falling short. The allure of this narrative led people to hold onto their investments for too long, neglecting to cash in when they should have. 

This reinforces the importance of developing a strategy tailored to one's risk tolerance and grounded in thorough research rather than following the crowd. Tuning out the noise and focusing on your approach is essential, a lesson closely tied to the following common pitfall: having inflated expectations, particularly among those new to the market.

#9. Inflated Economics

High hopes can sometimes result in significant letdowns. Viewing cryptocurrency investments as a means to rapid wealth can result in severe financial setbacks when reality fails to match these lofty expectations, particularly in the short term; investors often make ill-advised choices. Such mistakes include impulsively selling during market downturns or investing in high-stakes assets without adequately evaluating the risks.

It is crucial to have a solid strategy and adhere to it in order to succeed. By remaining patient and disciplined, your chances of success are higher. Should you experience good fortune in cryptocurrency, you must exercise humility and discretion. Boasting about your wealth can attract unwanted attention, and there have been disturbing instances where individuals who publicly flaunted their crypto gains online became targets of criminal activity. It's wise to keep your accomplishments private and avoid drawing unnecessary attention to yourself.

#10. Quitting Prematurely

Lastly, a common pitfall is surrendering too soon, which can cause investors to forfeit potential profits. The market's tendency to experience significant fluctuations can be intimidating, and those not prepared for such instability might quickly sell their assets during downturns, putting themselves at risk of losses. Exiting too early could result in missing opportunities for potential gains.

Successful investors are resilient and endure challenges, adapting their strategies and gaining knowledge along the way. Having a long-term perspective is key. While prices may experience significant fluctuations in the short run, it is essential to maintain a broader view. Viewing a bear market from a longer-term standpoint can offer a more positive outlook. 

Patience and holding onto investments can eventually lead to significant gains. Sometimes, you just have to “hold on for dear life” and wait for your fortunes to moon. Finding a balance and following the profit-taking strategy mentioned earlier is prudent. It is crucial not to let short-term market trends distract you from your crypto journey and to keep the perspective of how far the cryptocurrency industry has come since its inception. 

This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.



Editor and Chief Markethive: Deb Williams. (Australia) I thrive on progress and champion freedom of speech.  I embrace "Change" with a passion, and my purpose in life is to enlighten people to accept and move forward with enthusiasm. Find me at my Markethive Profile Page | My Twitter Account | and my LinkedIn Profile.






Tim Moseley

Three Wise Investing Principles For The Current Times

Three Wise Investing Principles For The Current Times

This article explores the importance of an investment portfolio and the process of setting it up. 

Why Consider an Investment Portfolio?

Perhaps one of the hardest lessons of these last two years is the realization that you can be great at what you do, and yet see all your efforts go up in smoke during economic turmoil. We live in a rapidly changing world and no industry is immune from the potential fallout of economic events.

Certainly the case for having more than one income stream has been underlined in these last two years, and being able to work online from home has taken on a new advantage. For many the idea of having an online business from home solves a lot of issues and generates money in the short term. At the same time it can be overwhelming to be wearing many hats in business without an established team around you. It is important to take a step back and put all of these things in a bigger context in terms of your life aspirations and how money plays its part in that scenario.

The Benefits of An Investment Portfolio?

There are several good reasons to consider an investment portfolio. This is not the same as portfolio income. When approached properly it helps you become proficient in financial literacy which you can pass on to your children. 

Financial investments give you financial assets which can produce cash flow in the medium to long term income. Central to the theme of investments is that money is working for you rather than the other way round. It is a smart move to work in partnership with money, as opposed to simply working for it.

The key is to have a diverse portfolio across several sectors to spread the risk and create good upside potential for profits. This is what Warren Buffet reportedly did so successfully. For many the word investment may sound a bit daunting, and too long term to be a serious consideration.

Image Source: Investment Portfolio

This gives clues as to where to start. Many people are caught up with the immediate short term things, only to regret not taking a more holistic long term view.  Here are three wise principles to apply to investing.

The First Investment

Steven Covey, author of ‘The 7 Principles of Highly Effective People’, advocates where life decisions are concerned, that you start with the end in mind and use that as a main reference point. This is all about the context in which all decisions play out.

So you need to start with yourself, and decide what you want your life to be about moving forward and build accordingly.  ‘Know thyself’ is a phrase often read, but how well do you really know yourself?  Take the time to do this and you will reap dividends, pun intended!!

The Second Investment

Once you have done so take the time to invest in your financial education. Financial literacy worldwide is very low, and yet significant money decisions are made everyday. This means there are likely to be far more speculators than investors involved in investing. 

Teach a Man to Fish

There are many experts in investing with free videos on youtube to get you off the mark. Robert Kiyosaki is a well known expert who talks in terms of six basic rules. He uses debt to invest and get rich while reducing or avoiding taxes with this strategy. He walks through the use of other people’s money, the three types of income, financial education, investing for cashflow, risk and raising capital.

On the other hand the investment community I joined teaches the opposite in advocating not to use loans to invest. Only you can decide which path you will take, but know the ‘why’ and the consequence of each decision. Weigh up the pros and cons. This is why it is important to become educated, so you can make informed decisions.

Give A Man A Fish | Teach A Man To Fish

In the community I joined they allow you to partake in their portfolio. At the same time they encourage you to learn how to create your own portfolio, which I have since been doing. It’s a combination of two strategic approaches –  ‘teach a man to fish’ and ‘give a man a fish’.

I learned about 8 Rules to govern my investment practice. I share them here in slightly paraphrased fashion so you can use these as guidance by way of developing your own portfolio.

  • Know what financial independence and financial freedom specifically mean to you. In other words what figures would equate to financial independence and freedom from your perspective.
  • The second rule references 5 commandments to follow. Firstly put 10% of your income aside for the purposes of investing. Always control revenue and expenditures. Protect your money from losses. Learn to invest. Learn to earn more.
  • Choose your financial plan and stick to it.
  • Don’t put all your eggs in one basket so to speak. Learn to diversify.
  • Always keep investment discipline.
  • Greed and laziness leads to bankruptcy and ruin.
  • Always study investing.
  • Always increase your investment deductions.

By having the above structure I was able to start developing my own portfolio. One of the key things in addition is to know your risk profile. In other words, how much are you prepared to risk when investing in something?

A positive way to rephrase this would be the price you are willing to pay for your education and research concerning that investment.  For example I decided to do a certificate of deposit strategy on a new project, but since this was new, I was very risk averse, and took a conservative approach.

I put $16 in and was able to 10x it into $160 in 1.5years. I was happy because the key objective was to get some wins from sound practice rather than simply hope I would rake in a lot of money. I was able to add to this after.

One of the first things taught in investment is not to put in anything you are not prepared to lose, and yet you see many doing the opposite. For example the enticement of short term and lucrative income pulls many a speculator in, only to see a rug pull happen quite suddenly. One thing the above two approaches agree on is the importance of financial education and investing for the long-term, not just the short-term.

The Third Investment

Source Image: Wisdom

This may present controversy for some but warrants serious consideration, and that is the wisdom of ethical investing. With everything that is currently going on in the world, what principles drive your investment strategy.?

I for one will not invest in Big Pharma because their profits depend on people being sick and therefore there is both an orchestration and a monopoly to dominate the markets so that people buy their stuff. There are people whose mindset is solely on what will make them money regardless of consequences. That may be driven by a survival mentality, impatience, greed or lack of education regarding alternative and lucrative choices.

Catherine Austin Fitts is an investment banker and former US Secretary of Housing during the Bush Administration. She is the creator of the Solari Report, which is an advisory publication for investors. In many of her talks she puts investment within the context of what has been going on in the world from a political and economic standpoint. She gives a comprehensive educational assessment from an aerial viewpoint with regards the plan of the globalists and its relationship to investing.

While she is not a fan of cryptocurrency for valid reasons, her core message is an important consideration in choosing investments, because what you invest in does not just shape your life, but also impacts the political and economic landscape. The bottom line of her message is that since the globalists such as the W.E.F. and their associates are wanting to enslave us, it is incumbent that we do not ‘build their prisons for them’ because they intend to put us in them!

You don’t have to invest in the Monsanto’s of this world for example. You can invest ethically and profit while changing the structures of society for the better. In doing so you stop feeding the beast so to speak.

Types of Investment

With the above three investment tips in mind, when it comes to what to invest in, that depends on you, your educational assessment and your life governing ethical principles, as to what you choose and prioritize. 

Traditionally there are different sectors such as technology, advertising, property, money, real estate to name a few. You can invest in property, technology, media, precious metals, restaurants, start up companies or already established companies. Basically any financial vehicle which creates cash flow can be considered an asset for the purpose of investing. Make sure to create your own investment criteria, by which you select or deselect investments.

As far as company investments are concerned, look at the company's vision, community, financial assets and projections, along with market statistics when assessing viability. Is it a liquid or illiquid asset? Who are the owners? Is there an advisory board?  What is the benefit to society?

Maybe you decide to do a safe haven play and invest in gold as an inflation hedge. Now it is easier to liquidate gold too. Study the precious metals and decide what best fits your needs. There may be certain companies you like which you could invest in. Maybe you choose to invest in projects that you are interested in such as cryptocurrency. Currently this is like the wild west and a very volatile market. So you need to have a firm sense of how risk averse you are, while keeping a very disciplined mindset. Maybe you go for projects that have real utility or are tied to real world assets.

Exploration of Investments

You might wish to look into legacy projects that are trying to improve the world we live in. Markethive is an obvious example of investing in a company that is building an ecosystem for the entrepreneur to thrive. Constellation DAG is an example of a blockchain that is fast and feeless in response to the issues with other blockchains such as ethereum etc.

Image Source: Constellation DAG

Qortal is a project that is building a new internet built around privacy and accessibility. Debtbox on the other hand is a project tied to real world investments using innovative scanning technology, for example. Bobcoin is tackling unemployment in Africa and pollution with its cryptocurrency based project.

None of the above are recommendations, but hopefully will stimulate critical thinking. Know your values, develop an investment mindset, otherwise you are effectively gambling. Also think about the world you wish to create through your investment choices.

For me I am looking to bring balance to my investments to include those I wish to see become part of our future such as Markethive, and technologies that allow me to create my own banking system as part of a parallel society to the one we are currently living in. 

Image Source: Markethive

Words of Wisdom

The Chinese bamboo tree has much to teach us about abundance in the long term. In the first four years there is no visible sign of growth. Yet in the 5th year when it breaks through the surface of the ground, it grows significantly to 90 feet tall within 5 weeks. So the question is posed – did it take 5 weeks or 5 years to grow 90 feet tall?

The answer is the latter because had it not been consistently watered and nurtured on a daily basis the growth spurt could not have happened. So be encouraged even if you have yet to start an investment portfolio.  It is never too late to do the right thing by you, especially if it creates a legacy that will inspire others beyond your life. 

Can you imagine the world we would live in if more did that, and what would happen if we started to thrive through making wise, ethical investments? This is how you change the world, one step at a time. Hold that thought, and live it out.



About: Anita Narayan. (United Kingdom) My life's work is about helping individuals to greater freedom through joy and purpose without self-sabotage, so that inspirational legacy can serve generations to come. Find me at my Markethive Profile Page | My Twitter Account | and my LinkedIn Profile.







Tim Moseley