DONT’T DO THIS:
This article is for educational tutorial ans not by any mean financial advice!
1- Buying high and selling low:
The people jump to buy when they found the price candles are going higher and higher. They feel comfortable that the cryptocurrency id booming and beleive it is the time to buy.
Once you buy the curve started to flatten for quite time and it might starts to go down and it end you are loosing money.
2- Buying because cryptocurrency is cheap:
You are looking to Bitcoin as very expensive crypto and you go to but very cheap one, but it will not go up and again you loose your investment.
Look to daily 24 hours movement of the crypt and put in mind Bitcoin is expensive but it always going up.
Sometimes, it is trick of whales investors who suddenly buy big shank of crypto and pump price up, the small investor buy and the selling starts where whaled buy low and sell high.
3- Using Leverage:
Using Leverage is very dangerous where you burrow money to invest which automatically increase risk of lose money as per the contract. Liquidation of the contract will let you loose whole money you invested and you will be left with ZERO balance.
4- Investments of vey booming cryptos:
This rapidly increasing prices of crypto is due to developer games by pumping up the crypto to attract small new investors. What is going up rapidly, will collapse rapidly as well.
5- Unification of your crypto basket to one or few cryptos:
You never be 100% right to guess which single crypto will will. So, you have to diversify your investment basket with low risk crypto. There are many strategies for basket diversification depending on short, intermediate or long term plan of investment.
6- Buying with the essential money you have:
Buying more that you can afford to lose is a risky strategy and a big mistake. Buy as you go and don’t risk your vital money.