Avoid forced analysis: One of the common mistakes of beginners is trying to predict where the cryptocurrency price will go. The crypto market is very unpredictable, and even experienced traders cannot always accurately guess the direction.
Follow the trend: It's better to stick to a trend trading strategy. When the market is rising — buy, when it’s falling — sell or stay on the sidelines if you lack confidence in the market.
Understanding risks in altcoins
Risks with low market capitalization: Many altcoins (cryptocurrencies other than Bitcoin and Ethereum) can show significant growth in a short period, but they are often more susceptible to manipulation and volatility. Always research the project thoroughly before investing in altcoins.
Don't put everything on one coin: Don't invest all your money in one altcoin, even if you think it will grow. Diversification is key to reducing risks.
Understand the projects, don't just follow the trend
Fundamental analysis: Be sure to study the project behind the cryptocurrency. Good projects have a strong team, clear goals, and active community support. You shouldn't buy a coin just because it's trending.
Whitepaper: Familiarize yourself with the project's white paper — this document describes how the project works, its goals, technologies, etc. By reading it, you'll gain a better understanding of how promising a specific project is.
$XRP