After 6 years of turmoil in the crypto market, I have learned the common mistakes that many advisors must have. Here are valuable lessons and how you can avoid these mistakes to optimize your investment efficiency.

1. Having Unrealistic Expectations

Many investors set unrealistic profit expectations, leading to disappointment or emotional actions when the market does not behave as hoped. Keep expectations in check to maintain a long-term vision.

2. No Investment Target

Chasing short-term trends or 'hot' projects causes many to forget their long-term financial goals. Determining the target of investments will help you stay on the right track.

3. Not Diversifying the Portfolio

Putting all your capital into a single asset or project is a huge risk. Diversifying your portfolio will help you minimize the negative impact from the fluctuations of a single asset.

4. Focusing Too Much on the Short Term

The crypto market is constantly volatile, easily causing you confusion and changes in your initial strategy. Always look further to avoid rash decisions.

5. Buying High, Selling Low

The psychological fluctuation when prices drop and excitement when prices rise often leads advisors to buy at high prices and sell at low prices. Discipline and strategy are key to avoiding this.

6. Overtrading

A study by the Financial Journal found that overly aggressive traders outperform the market by an average of 6.5% each year. Consider your skills before each trade.

7. Paying Too High Fees

Free trading, asset management can benefit you when transferring money over time. Please choose platforms with competitive fees and pay attention to cost limits.

8. Focusing Too Much on Taxes

Taxes are an important factor, but making investment decisions based solely on taxes may not be optimal. Don't let taxes become the dominating factor in your entire strategy.

9. Not Reviewing the Investment Portfolio

Failing to define a testing list can lead you astray. Please review your portfolio quarterly or annually to ensure it still aligns with your investment goals.

10. Misunderstanding Risks

Excessive risk can keep you awake at night, but too low a risk may not be enough to achieve financial goals. Finding the right balance for yourself is important.

11. Not Knowing Investment Performance

Many people are unaware of the actual returns of their portfolio after fees and distributions. Regularly monitor performance to ensure you are getting closer to your goals.

12. Overreacting to the Media

Short negative news can be frightening, but don't forget that investing is a long-term action. Don't let the spread of information shake your strategy.

13. Forgetting About Inflation

Inflation decreases purchasing power over time. If you do not take this factor into account, you cannot achieve the real value of your financial goals.

  • A value of $100 with 4% distributed over the year:

    • After 1 year: $96

    • After 20 years: $44

14. Trying to 'Time the Market', 'Catch the Peak'

The perfect timing to buy and sell is very hard to predict. Maintaining continuous investments yields higher returns, so try to exceed expectations.

15. Missing Project Check

Not thoroughly checking project information, development teams, or financial advisors can lead you into reputable projects or scams. Please use tools like BrokerCheck to verify information.

16. Working With Mistake Advisors

Choosing the wrong issue can cause you to lose your direction. Please take the time to review and ensure you understand your goals.

17. Investing Based on Emotions

The market is often volatile, but letting emotions dominate will lead to unwise decisions. Please keep a cool head.

18. Chasing High Returns

Assets with high benefits often come with high risks. Do not just look at the profits while ignoring other risk factors.

19. Missing the Opportunity to Start Early

Time is the most important factor in investing. If you start early, the profits will significantly increase thanks to interest.

  • An investor $200/month at an interest rate of 7%/year:

    • Starting at age 25: $520K

    • Starting at age 35: $245K

20. Not Checking What Can Be Verified

You cannot expect to anticipate the market, but you can control saving, periodic investing, and reducing costs to achieve better results in the long run.

Conclusion

Investing in cryptocurrency is a full challenge and a basis for action. Avoiding mistakes here will help you build an effective and sustainable portfolio. Always remember that success does not come from luck, but from knowledge, discipline, and illustration.