Cryptocurrency is becoming more and more prevalent, and with that popularity comes a wave of people looking to buy it. A social-first crypto marketplace Earnity, headed by crypto experts Dan Schatt and Domenic Carosa, is set to launch a platform that will provide a means for users to purchase, sell, and hold crypto and DeFi assets. However, some commonly committed mistakes have to be avoided for those looking to buy into the cryptocurrency market.
One of them is mistiming the acquisition. Buyers should steer clear from buying at an all-time high. For instance, in 2021, numerous people bought Bitcoin when its value reached around $60,000. They were in for a surprise when the price plummeted and started moving sideways, then made another mistake by panic-selling their tokens.
Conversely, buying in just because a cryptocurrency’s value is low may also prove to be a blunder. When a coin is trading at a small price, it does not necessarily entail that the asset will eventually rise in value. In fact, there is also the likelihood that its worth will continue to drop, more so if the asset is not supported by a strong project.
Furthermore, buyers should never go all in or buy more than they can afford to lose. Given the volatility of cryptocurrency, spending too much can be a quick way to lose wealth.
Another mistake that cryptocurrency buyers have to be aware of is not securing purchases properly. It is vital to use a secure crypto wallet. Additionally, buyers should not forget and even make a copy of their wallet key to prevent losing access to their tokens.
One of the best ways to avoid mistakes when buying cryptocurrency is to be educated about the industry. According to Dan Schatt and Domenic Carosa, the Earnity platform is intended to be a social-first marketplace where users can interact with, follow, and join communities to learn about crypto.