most common mistakes people make
1 - Not being emotionally prepared for a very turbulent journey
Everyone knows that the prices of crypto assets are subject to very high volatility, but not everyone is aware of how extremely volatile they can often be. The most famous cryptocurrency is Bitcoin. In its nearly twelve years of existence, its price has fallen by more than 75% on three distinct occasions. Every four years, the performance of Bitcoin experiences drops as steep as the biggest drop seen in equities over the last 100 years. Compared to freely floating cryptocurrencies, the price volatility of other assets pales in comparison.
Often, cryptocurrencies other than Bitcoin have shown even greater volatility. Of the top 10 cryptocurrencies by market capitalization since 2013, only one has managed to remain in the top 10. Eight of the top 10 from 2013 are no longer in the top 800 and have fallen into obscurity. Of the top 10 cryptocurrencies in 2016 by market capitalization, only three remain in the top 10. It is important for potential cryptocurrency investors to occasionally remember that massive price fluctuations are the norm and not an exception for freely floating cryptocurrencies. They must be emotionally prepared for what is likely to be a very turbulent journey.
