Diving into the world of cryptocurrencies can be exciting, but it is also full of potential pitfalls, especially if you are a beginner. Here is a basic guide to help you avoid common mistakes and improve your decisions from the start.

Author: Pablo Dávila S.

Date: November 25, 2024

1. Not researching before investing

The most common mistake is to invest in something without understanding what it is. For example, buying DAI thinking it will increase in price when in reality it is a stablecoin, designed to maintain its stable value against the dollar. Always research each coin: is it a stablecoin, a utility token, or just a memecoin?

Tip: Before buying, research the utility of the project and its historical performance.

2. Chasing high prices

It's easy to get carried away by coins that are already rising, thinking they will continue to go up. This often leads to buying at the worst moment, just before a drop. Learn to analyze charts and patterns to avoid being a victim of FOMO (fear of missing out).

3. Investing without a strategy

Buying without a plan is like sailing without a compass. Define clear goals: do you want short-term profits, or would you prefer to hold long-term? This will prevent you from selling out of fear or buying on impulse.

4. Ignoring commissions

Every purchase and sale generates costs, and often, beginners lose more money in commissions than in the investment itself. Find out how much the platform you use charges and plan your moves with this in mind.

5. Not diversifying your portfolio

"Don't put all your eggs in one basket" is a principle that also applies here. If you invest everything in a single coin, the risk of losing it all is much greater.

6. Not following those who know about crypto 😉

One of the keys to learning faster is to surround yourself with people who already have experience. Not following me on social media would be a mistake. I share analysis, strategies, and news that can help you avoid unnecessary pitfalls!

Follow me to stay informed and make smart decisions.

Final reflection

Making mistakes is part of learning, but you can avoid them if you start with a solid foundation. Remember: knowledge is power, and in the crypto world, it can make the difference between success and failure.

Learn, invest strategically, and be part of the financial future!

Author: Pablo Dávila S.

Date: November 25, 2024
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