[English Translation] 10 mistakes that cryptocurrency beginners tend to make

This time, since there were many passages like “I see… I understand!”, I tried to translate them properly into English.

Even if you’re not a beginner, if you are in a position to explain to beginners, there may be many parts you can refer to.

Shall we read it now (NEM is mentioned once—)

10 Mistakes Crypto Beginners Commonly Make

Just the other day, while browsing Cent—a wonderful new platform that functions as a Quora-for-Crypto (Quora for cryptocurrencies)—I asked my crypto-industry friends about the biggest mistakes they have made.

In exchange for about $10 worth of ETH (Cent rewards you for answering questions), I was able to receive some great responses.
※ A Q&A site created, edited, and managed by the user community

From here on, I’ll present a list of the 10 mistakes all crypto beginners should avoid. Enjoy.

1. Not doing DYOR (not researching on your own)

After all, you are the one who earns the money to buy crypto. If you don’t understand the product or its value and you only listen to “experts” on Medium, Twitter, Slack who tell you when to buy or sell, you’re likely to run into big trouble and lose a lot of money in the future.

As a friend of mine on Cent accurately put it, “If you’re buying crypto by relying on someone else, you’ll be forced to rely on that person when you sell.” Do your own research instead of pretending to know it all.

2. Starting mining with the expectation of huge profits

It’s true that early Bitcoin and Ethereum miners are likely to have become millionaires by now. I understand the impulse to rush out and get “free crypto” by buying equipment immediately. However, resist doing it without first doing your own research.

Mining requires a lot of electricity. Therefore, unless you can access electricity at an unbelievably low price or for free, mining isn’t worth it. If you live in Siberia and have a huge warehouse to house hundreds of machines, that’s a different story. Even then, beginners would be wise not to delve into mining.

If you’re truly interested in mining, consider improving Decred’s proof-of-stake or experimenting with NEM’s harvesting.

3. Lack of patience

Especially if you’re peeking at crypto Twitter, this can be hard. You’ll see posts like “What is this! It’s skyrocketing! Buy, buy, buy!” or “Hmm, BTC seems to be garbage… better to sell.”

This information has its merits, but it’s physically impossible to check every bit of information. Generally speaking, patient people make the most profits. For example, I held Decred for two years and earned 46,000% in return. If I had sold at $0.20, I would have lost nearly $18,000.

That doesn’t mean short-term trading is impossible. It can yield big profits. But if you decide to trade short term, plan it and execute it with discipline.

Borrowing the words of the esteemed Warren Buffett, “The stock market is a device that transfers money from the restless to the patient.” In this respect, crypto markets behave similarly to the stock market.