The 5 most common mistakes in crypto investing
Crypto can be thrilling, but also brutal. The same mistakes happen over and over. Do you want to know which they are and how to avoid them?
TL;DR
- ⚠️ Don’t invest money you need for essentials.
- ⚠️ Don’t chase pumps blindly.
- ⚠️ Don’t use leverage without experience.
- ✅ Always have a plan.
- ⚠️ Don’t fall in love with a token.
Context
Crypto is volatile and often unregulated. That brings opportunities but also risks for the undisciplined.
Prerequisites
- Know what Bitcoin and BNB are.
- Have an account on a reliable exchange like Binance.
- Enable basic security measures like 2FA.
Step by step to invest wisely
- Define your budget.
- Decide your time horizon (short vs. long term).
- Use only disposable money.
- Diversify across assets.
- Review your plan regularly.
💡 Tip: keep a trading journal. ⚠️ Safety: never bet your entire capital on one trade.
Security checklist
- ⚠️ Use 2FA on Binance.
- ⚠️ Keep your keys safe.
- ⚠️ Don’t trade under stress.
- ⚠️ Don’t invest without understanding the asset.
- ⚠️ Always set stop-loss levels.
Common mistakes and how to avoid them
- Using rent money → disastrous losses. Prevention: only invest spare funds.
- Buying because it’s going up → painful crashes. Prevention: analyze first.
- High leverage as a newbie → instant liquidation. Prevention: avoid until experienced.
- Investing without a plan → confusion. Prevention: set clear goals.
- Altcoin attachment → prolonged losses. Prevention: review fundamentals often.
Practical examples
- John put his rent money in an altcoin and lost 60%.
- Anna used 20x leverage without knowing, and got liquidated in a day.
Quick comparisons
- With a plan: safer.
- Without a plan: gambling.
Editorial note
Markets don’t forgive basic mistakes. Discipline decides who lasts and who doesn’t.
Next step
Read [Crypto security essentials](/en/guides/security).
Results / Conclusion
The secret is not avoiding risk but avoiding repeated mistakes. Survivors are learners; the rest are stories.