1. Investing without doing research: Many new investors may be attracted by news reports, recommendations from friends, or hype on social media and invest without doing enough research. This is extremely dangerous because the crypto market has high volatility and there are a lot of risks.
2. Pursuit of quick profits: Many people may be fascinated by stories of getting rich overnight and think that cryptocurrencies can make a lot of money quickly. However, real investment requires patience and long-term strategy.
3. No risk management: Not setting stop-loss points, not diversifying investments, and investing too much money are common mistakes made by novices. Risk management is very important in the investment process.
4. Ignoring security: Many novices may not realize the importance of protecting private keys and passwords, and often lack an understanding of basic network security knowledge.
5. Not understanding the concept of cryptocurrency: Many newbies may only be interested in the price of cryptocurrency and ignore the technology and purpose behind it. It is very important to understand the basic principles of blockchain and cryptocurrency.
6. Being affected by market sentiment: Being too optimistic when the market is bullish and too pessimistic when the market is falling. This mentality may lead to impulsive decisions and thus losses.
The best way to avoid these pitfalls is to educate yourself: understand the fundamentals of cryptocurrency and blockchain, learn the basics of investing and risk management, and stay calm and rational.
