Here are the five most common and most easily avoidable mistakes that rookies and beginners make in the cryptocurrency market. I appreciate it if you share this post with anyone who you think is new to cryptocurrency that could use a few pointers.The first one we have is FOMO.Fear of Missing Out.It is inspired in all of us.OK, we are all guilty of this, but usually it's the beginners that act on it and that's the difference.when you see price the cryptocurrency that you're not invested in, or maybe you think you haven't invested enough in it and you see those prices just kicking off so many percentage of gains happening.For other people who have invested in this coin, they're saying how happy they are. Wow, look at all the profits I made and you didn't do it.FOMO means that you will chase that price, meaning that you will often be purchasing at a higher price than you would have liked, and maybe that's not according to your investment plan.You're making a rash decision and emotional decision, and you might be buying at the top holding a bag worth of cryptocurrencies.That's only going to be devaluing for the next several years and maybe it will never see those all time highs again. That is quite common for all coins.Short term profits, not long term survivability rate. Second mistake we have from rookies is over trading.During a bull market it is very easy to make a lot of trades and think that you're being super profitable because guess what, prices just keep going up.So even if you buy here, you sell here at a profit.You can buy again, sell again at a profit, You're going to be doing a lot of trading and you're going to think you're a genius.This is a bull market, OK?Profits come very easy during a bull market. If you're over trading during it, especially if you're a tax citizen, or if you're a tax resident or a tax citizen of a country that taxes all of your cryptocurrency trades and transactions, these might not be as profitable as you think they are.Additionally, if you're trading on a decentralized exchange, the trading fees could definitely be cutting into your profit. If you want to be surrounded by thousands of other people who are in this crypto space, many of them for several years, they have a lot of information to give.

The third mistake that rookies make is risk management. Not knowing how to mitigate risk, How to hedge against potential losses using things like stop losses if you're using a centralized exchange, diversifying your crypto portfolio, Not going all in on one random micro cap coin because it's only valued at .001 cents and you can afford to buy a million of them. These are all ways that you can easily mitigate risks.

Fourth A lack of security awareness. This happens a lot during a bull market.Unfortunately there are a lot of hacks.Maybe it's DFI hacks are there, smart contracts are being compromised.Maybe beginners are flooding the cryptocurrency market and they don't know any better, and they click on a link that ends up allowing a hacker to infiltrate their wallet and steal their coins. Maybe they're using Meta Mask for the first time. They're downloading a scammy version of Meta Mask like that happened to Mark Cuban recently. Maybe you're keeping all your coins on a centralized exchange.Maybe you're not taking custody over your coins and then that exchange crashes and burns along with your custody of your crypto currencies is gone forever. These are all really common ways that experienced cryptocurrency users are aware of and have made plans to take those security precautions.But if you're new, you don't know, but you should.So that should be definitely something that you are looking into.As you're raking in all the profits during a bull market, remember that the value of those cryptos are climbing.That makes them more attractive to hackers to incentivize to be incentivized to take them from you.

The fifth most common rookie mistake in the cryptocurrency market are impulsive decision making. Cryptocurrency markets are volatile.But when you have your money on the line, are you able to make wise decisions if you don't know any better? You're brand new to this market, you don't know the long term potential of the cryptocurrency you're invested in, and you see it dip when all you've ever experienced before this was up and up and up and up and everyone tells you crypto is not going anywhere. Bitcoins going to $1,000,000 and you see a dip.All of a sudden you're like, Oh my gosh, that's not what I was told.That is an emotional decision, my friend, that you should be avoiding at all costs. But mostly it's an indicator that of 1, obviously your newness, but 2, maybe you're too exposed to that cryptocurrency and you can't handle the volatility because you have too much on the line and you're violating the golden rule of cryptocurrency investing. You've invested what you can't afford to lose, and that's a very dangerous position to be in that I don't advise anyone to be in that position.
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