Before buying cryptocurrency in India, many investors tend to make numerous common mistakes. So, if you are new to purchasing cryptocurrency in India, consult with Zebpay to find out how to diversify your cryptocurrency portfolio.
Recently, there has been a rise in cryptocurrency investors around the globe. Everybody hopes to get their hands on probably the best cryptocurrencies like Bitcoin and Ethereum. However, the cryptocurrency world is still young and highly erratic, and there will always be some inherent risk involved despite one’s brilliant investment strategy. And in a hurry to join the bandwagon, many investors tend to make numerous common mistakes in crypto trading.
Knowing these common mistakes will help you evade any entrapment which many novice crypto traders fall prey to. So, if you are new to buying cryptocurrency in India, here are five common mistakes that you should be aware of:
Not having a precise plan.
Perfect planning goes a long way when it comes to investing in cryptocurrency. You should not just take a nosedive into the crypto world. Instead, chalk out a wholesome plan. Nowadays, competition and cryptocurrency go hand in hand, meaning earning in the crypto market is not as easy as it appears to be. It needs strategy and precision. It could be a financial catastrophe when you do not know what your financial goals are. As with any other investment, you must also decide your goals and objectives and only then get into the crypto game and start profiting.
Not having long-term goals.
Simply put, there is no shortcut. When it comes to cryptocurrency trading, your goals should be aligned with your complete long-term financial objectives. Without any long-term goals, you may be persuaded by the volatile market trend more than your specific best interest. You might start following a trend and buy or sell just because everyone else is doing so. When you have long-term goals, you can be more careful about the prospects that come your way.
Not diversifying the portfolio.
Never put all your eggs in one basket. When it comes to investing in cryptocurrencies, the mantra is diversification. People often forget this. It is ideal for dividing the money into different asset categories, such as Bitcoin, Tether, Ethereum, and other profiting altcoins.
Not choosing the best crypto pairs to trade.
Crypto pairs allow you to compare costs between different cryptocurrencies, like how much Bitcoin equals how much Ethereum and how much Ethereum is equal to how much Bitcoin Cash. They can be traded for each other on a cryptocurrency exchange like Ethereum/Bitcoin Cash and Bitcoin/Litecoin. It is seen that some pairs can only be bought with particular cryptocurrencies, so an understanding of trading pairs is vital to know which ones are the best crypto pairs to trade. A shortage of information on crypto trading pairs often leads investors’ plans to go awry and incur losses.
Not being consistent with tracking.
Being meticulous with tracking cryptocurrency exchange rates is crucial if you want to make informed decisions. A periodic checking will ensure you are ahead of the curve and will help you address a potential crisis or opportunity in advance.
Conclusion
To sum it all, before buying cryptocurrency in India, prospective investors need to evaluate the opportunities according to their profile before taking any further action. Make sure to know your investor profile, have a proper plan in place, understand the best crypto pairs to trade, and always keep upgrading yourself in terms of knowledge. Consult with ZebPay to find out how to diversify your cryptocurrency portfolio.
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