1. Don’t trade, or invest in crypto, because you’ll lose everything
Starting with probably the most commonly encountered, and most inaccurate myth of all: if you follow some very basic guidelines, you will most likely not lose all your funds. The steps everyone can take to avoid such an event are actually quite simple. First, as the saying goes, try not to put all your eggs in one basket. Instead, try to diversify your portfolio as much as you can, as it tends to be the best practice for possibly reducing the involved risks. Also, remove emotion, invest what you can afford to lose, and avoid using leverage to maximize your chances.
2. Crypto trading and investing equal gambling
We are here to tell you, that crypto trading is far from gambling. If you put all your savings into a random token that just popped up and offered thousand-percent returns overnight, then you’re gambling. However, there’s much more to crypto trading, and investing than that. We recommend setting S.M.A.R.T. (Specific, Measurable, Achievable, Relevant, and Time-bound) financial goals, and thinking long-term when it comes to the majority of your investments. Additionally, if you follow a solid strategy, and make educated decisions based on your knowledge, crypto investing distances itself even further from gambling.
3. You need special knowledge to trade and invest in crypto
Back in 2008, when cryptocurrencies started, this statement was, indeed, very true. However, thanks to visionary companies, such as coinpass.com, trading, and investing in cryptocurrencies is more secure, easier, and more convenient than ever before. Still, we recommend at least visiting the official website of the cryptocurrency you’re about to invest in—every legitimate project has one—to see whether you personally believe the project has the potential to help with reaching your goals.
4. When trading crypto, you’ll either become rich, or broke
While it’s true that crypto has made many millionaires, it is not, and should not be, the standard expectation of every trader. In fact, it’s just as rare as someone going completely broke after losing funds with trading. As briefly mentioned before, the secret lies in having a long-term vision, and a sound strategy in place. For instance, your strategy could include investing a maximum of 5% of your total available funds in one particular coin, and selling the position if it reaches a 10% loss, or 25% gain.
5. Crypto trading is highly technical, not everyone can do it
Simply put, thanks to coinpass, no technical background is required to start with crypto trading and investing, thus everyone with a device connected to the Internet can do it. Needless to say, when you advance during your crypto journey, you might eventually reach a level where technical skills offer great benefits, but that’s unlikely to happen overnight. By starting with £100, you’ll be able to buy your first cryptos and learn most of the skills that will come in handy later on your long-term journey.
There you have it: the top five crypto trading myths debunked. As with anything else, starting, and taking the first step is most probably going to be the hardest part throughout, but remember the age-old saying: the best time to plant a tree was twenty years ago; the second-best time is now.