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Investment Review: MCO coin & Crypto.com App — Earning Interest on Crypto
So I’m pretty big on finding small income streams and diversifying what I do with my money, hence my first foray into cryptocurrency and blockchain technology.
The industry is still in its infancy and there are very few legitimate projects making a good go of it and providing investors with returns so when I do find one I’m happy to try it out, especially in a bear market when prices are low, the risk is low.
If I’m able to acquire more stake at this point on my capital I am happy to do so and don’t really worry about the current fiat value. I’ve taken a risk before on the freebitco.in interest account which still seems to be ticking over a 1000 Sats a day.
I have also been soft staking Kucoin and NULs on the Kucoin exchange which brings me a few Sats each day, nothing to run home to but with prices so low the more stake the better for me.
MCO and crypto.com
A while back @trincowski told me about MCO token and the crypto.com app that offers investors interest on the capital you invest with them for a lock-up period. At the time I heard about it the token was $5.45 cents and seemed a little too steep for me so I waited it out until it hit a reasonable $3.20.
I downloaded the app and set up an account. Note you will need to do KYC to get a verified account which to me obviously has its downside but this is not a decentralised app, this is a centralised investment tool that uses cryptocurrency.
These hybrid companies will be what makes consumers more comfortable with crypto and a necessary evil I suppose. I think maximalists will stay away but for the interest of seeing what they can offer I went ahead and set up an account.
How crypto.com investing works?
Crypto.com allows you to send your cryptocurrency to them and then lock it in for a fixed period or flexible period and receive interest back on your lump sum. The interest is paid out every 7 days and added to your balance.
The application supports around 20 cryptocurrencies and you can earn interest as long as you hold the minimum fee per coin.
The interest rate model
On the crypto.com app and site, they advertise the highest possible return per choice but it is not necessarily the interest rate you will receive. This depends on several factors which I will run through to make it more transparent.
I was kind of annoyed and felt mislead by their messaging thinking I would get 8%. Their messaging should be clearly and perhaps start at the base level % and say earn from % not state a fixed rate.
The advertising rates are as follows:
However, they break down works like this.
If you hold no MCO tokens and you don’t stake them you can get
- Cryptocurrency gets you a 6% base interest rate if you lock the minimum required value for 3 months
- Stable coins get you a 10% base interest rate if you lock in the minimum required value for 3 months
- Cryptocurrency gets you a 4% base interest rate if you lock the minimum required value for 3 months
- Stable coins get you an 8% base interest rate if you lock in the minimum required value for 3 months
- Cryptocurrency gets you a 2% base interest rate if you lock the minimum required value
- Stable coins get you a 6% base interest rate if you lock in the minimum required value
If you hold 500 MCO or more you get a better interest rate return
- Cryptocurrency gets you an 8% base interest rate if you lock the minimum required value for 3 months
- Stable coins get you a 12% base interest rate if you lock in the minimum required value for 3 months
- Cryptocurrency gets you a 6% base interest rate if you lock the minimum required value for 3 months
- Stable coins get you a 10% base interest rate if you lock in the minimum required value for 3 months
- Cryptocurrency gets you a 4% base interest rate if you lock the minimum required value
- Stable coins get you an 8% base interest rate if you lock in the minimum required value
In case you’re wondering, stable coins get a better return because of the less risk because of price volatility and make collateral loans cheaper and easier to handle on the other side.
My experience with the app
The app works really well and transitions smoothly between screens and to fund your wallet you can choose between 3 options.
- Do so with fiat uploads only available in US and UK
- Send cryptocurrency directly to deposit address generated in-app
- Purchase directly with a credit card — any Master card or visa
I decided to use the credit card option thinking it would be the easiest and I thought I could save on transfer fees buying BTC to send to the app to buy MCO or buying on Binance and sending it to the app.
I first needed to validate my credit card and pay a $0.10 fee to do so, my bank rejected it so I had to call them to remove the block. I then validated the card with the 10 cent fee and I could now buy the MCO tokens I wanted.
I put in an order for 65 tokens around $210 and I had to pay a 7% transfer fee which was slightly annoying but I came this far and it saved me a few conversions so I proceeded.
My wallet was updated instantly and the funds were now available.
Investing your funds
Now that the funds are in your account, it doesn’t mean you will be earning interest. You need to tap on the balance and then select the option you would like, either a lock-up for 1 month, 3 months or a flexible option.
I chose the 3-month option since I wanted the best interest rate available to me. Since I only have 65 MCO tokens and took the 3-month option I get a 6% return on my investment.
That’s it, now all I can do is sit and wait to watch the interest I earn accumulate over the next few months.
How does crypto.com make money?
To pay you a guaranteed interest crypto.com needs to do something with the funds to make money right? Well, they do this by issuing out loans based on collateral in cryptocurrency and also act as a payment method with their MCO cards.
By users offering up capital for them to run their programs and charge transaction fees and interest on loans, you are rewarded for this faith in the system with a nominal interest rate.
Since you do not own your wallet keys and you’re sending your funds to an account held by crypto.com you are completely at the mercy of the company. If the tank or exit scam your funds are not guaranteed and they could be lost forever.
The app does provide you with facial and thumbprint login as well as 2FA via Google 2FA, which offer a slight layer of protection against external attacks on your funds.
To invest or not to invest
If you would like to get on board you can use my referral link in the footer. If you do, you can get an extra $50 credited to your account to use for your investment as will I, win-win for both of us.
Remember the dangers and invest only as much as you can afford to lose.
I clearly indicate the downside and If you’re not willing to accept the risk I suggest you stay away from this investment opportunity.
This isn’t direct investment advice, I am only telling you what I am doing in the crypto space. I felt I would like to take the risk and see what this project can offer me and I’ll report back over the next 3–6 months on how it has performed.
Originally posted on Steemit
I have not been paid to create this review and this is my personal take on using the service and risking my own money. If you’re still keen to try it out you can join Crypto.com and earn an extra $50 worth of crypto by using my referral link
About the Author
Che Kohler is the co-founder of nichemarket, a South African Business Directory and digital marketing agency. He is an avid blogger who specialises in writing about marketing tech and cryptocurrency.
VIP-Crypto Review – Is vip-crypto.com scam or good crypto broker?
RECOMMENDED FOREX BROKERS
Trading Accounts & Conditions
|Account type||Minimum deposit||Maximum leverage||Spread|
|Bitcoin||$250||Unspecified||$100 (1.45%) for BTC/USD trading|
|Bitcoin-Ethereum||$1,000||Unspecified||$100 (1.45%) for BTC/USD trading|
|Bitcoin-Ethereum-Litecoin||$10,000||Unspecified||$100 (1.45%) for BTC/USD trading|
|Bitcoin VIP||$50,000||Unspecified||$100 (1.45%) for BTC/USD trading|
VIP-Crypto is a cryptocurrency CFD broker. In essence this is a forex broke, which has cut all the non-crypto assets out of the platform. Accounts are held in fiat currencies and one can only speculate on the price movements of different coins. As you can probably guess from the score, we don’t like a lot of things with this broker, but let’s start off with the few positives.
A lot of coins traded
The number of coins at VIP-Crypto is rather impressive. Most traditional forex brokers who venture into this new realm start by offering Bitocin and maybe Ethreum and Litecoin. This company allows you to trade 9 coins versus USD, EUR and GBP. On top of that there are around thirty more exotic coins, paired with BTC. While this will make calculating your trading results rather hard, it is still a nice addition.
Many deposit methods
VIP-Crypto accepts payments made by Bank Transfers, Credit Cards, Neteller, Skrill and Bitcoin. There aren’t that many brokers offering such a broad range.
No financial regulation
VIP-Crypto is a trademark, owned and operated by FX Wilkinson Europe LTD., a company based in London. With that in mind, they should be registered with the Financial Conduct Authority (FCA), one of the world’s toughest financial regulatory agencies, but they aren’t. Trading with an unregulated forex broker is very risky and we wouldn’t advise you to do it.
Even if you argue this is a cryptocurrecny related company, the European Union has a very definitive position – if a company provides CFDs, it should be regulated (regardless if they are based on Bitcoin or orange juice futures).
Poor (and misleading) presentation
When we first visited VIP-Crypto, we thought this is a binary options company. The account types mention payout percentages, instead of spreads and leverage. On the other hand, the “asset index” page has forex pairs, stock indices, commodities and even specific stocks. None of this is relevant to the trading environment we saw after opening an account – only crypto is on the table. In essence, this feels like a website, which was stitched from a couple of others.
One of the misleading pages on this broker’s website
When comparing the costs of trading for crypt-CFDs, we like to take a look at the BTC/USD one. VIP-Crypto offers a fxed $100 spread (roughly 1.45% of the price of aa Bitcoin), which is higher than the industry average of around $30-$40.
Barely decent platform
The trading interface offered by this company seems functioning, but not that functional. The charting is fine, but the entire way you place an order feels slightly clunky. Since demo accounts aren’t available, we can’t test how the interesting leverage setting mechanism (you can apparently choose a different ratio for each trade – see the one we have input to have a lugh). Here is a screenshot:
The web-based platform at VIP-Crypto (click to zoom)
A more experienced trader will prefer more technical analysis tools, which aren’t offered here. One of our favorite platforms, mainly due to its immense potential for customization is MetaTrader4.
VIP-Crypto is a cryptocurrency CFD broker, whose website is a bit of a mess. They are based in the UK, but aren’t overseen by the FCA. On top of that the actual costs of trading (which aren’t properly disclosed) are rather high.
Had this been a regulated company, we would have had a very different opinion on them. Britain’s financial system is one of the safest in the world, but when it comes to forex brokers, you should always look for ones which overseen by the Financial Conduct Authority (FCA).
FXTM a regulated forex broker (regulated by CySEC, FCA and FSC), offering ECN trading on MT4 an MT5 platforms. Traders can start trading with as little as $10 and take advantage of tight fixed and variable spreads, flexible leverage and swap-free accounts.
Trading212 is a European broker with an excellent proprietary trading platform, which is now available as an iPhone app as well (we tried it out and we loved it). Trading 212’s customers enjoy fast execution a vast selection of trading instruments.
XM is broker with great bonuses and promotions. Currently we are loving its $30 no deposit bonus and deposit bonus up to $5000. Add to this the fact that it’s EU-regulated and there’s nothing more you can ask for.
FXCM is one of the biggest forex brokers in the world, licensed and regulated on four continents. FXCM wins our admirations with its over 200,000 active live accounts and daily trading volumes of over $10 billion.
FxPro is a broker we are particularly keen on: it’s regulated in the UK, offers Metatrader 4 (MT4) and cTrader – where the spreads start at 0 pips, Level II Pricing and Full Market Depth. And the best part? With FxPro you get negative balance protection.
FBS is a broker with cool marketing and promotions. It runs an loyalty program, offers a $100 no-deposit bonus for all new clients outside EU willing to try out its services, and an FBS MasterCard is also available for faster deposits and withdrawals.
FxChoice is a IFSC regulated forex broker, serving clients from all over the world. It offers premium trading conditions, including high leverage, low spreads and no hedging, scalping and FIFO restrictions.
HotForex is a EU Regulated broker, offering wide variety of trading accounts, including Auto, Social and Zero spread accounts. The minimum intial deposit for a Micro account is only $50 and is combined with 1000:1 leverage – one of the highest in the industry.
Traders` reviews for VIP-Crypto
I opened an account with Vip-crypto.com, transfered $300 of which was subsequently increased to $600 but have been having difficulties withdrawing from my account let alone even gain access to my account since 2020.
Funds not returned
I invested 250 dollars and I was told I can take my money anytime instead the brokers kept pushing for more funds I refused when I tried to withdraw I met with no success. I emailed and sent numerous documents that were requested only to be sent to different people. We work for our money and are trying to make our lives better only to be scammed. It has been over a year now with no solid leads. for some of us 250 usd is equivalent to one month of surviving.
I invested with duncan bates 10 brokers ..vip crypto , they wanted more and more until all my pension money.. was gone they made such false promises , i tried to withdraw, still pending after a year even blocked my a/c..told me i must pay tax equivalent to the amount invested. my opinion don’t ever be fooled by them. they are thieves will scam you of everything.
This company is a fraudster
I was made to invest USD 259 hlast,year July 2020 by the so called broker Donald Ghordan.After several attempts to invest more money which I refused I decided that I want my money back. I tried to withdraw money from my vip-crypto account but up to now it’s still pending.I can’t even log into my account.Pkease people don’t fall into,the same trap I,fell in vip-crypto is not what it seems to be to be they are scammers.I want my money back please anyone help to stop these scammers to continue robbing innocent people.
Am I scammed?
I have invested usd 1500.00 thinking that a trade broker will help me get a profit of my hard earned savings.but after i deposited the money nobody from crypto is helping me. I just want to get my money back but how . Please help me.
For me 1500 usd is fortune for me
Unable to cet on website or contact
I assume that vip-crypto has closed their website
FUCK YOU. DIRTY SCAMMERS.
i cant even login in this site. I tried to contact them with no respond. can you help me out
Do not go anywhere near this company they are fraudsters and will con you into deposits which they will steal and then disappear. Be warned!
They are scammers
I was harassed by this company until I deposited ВЈ500, after a few weeks I never got the hang of it and have been since trying to withdrawal my money and itвЂ™s been a year and my number is now blocked and my emails gone ignored. This company is a scam and stealing people money !!
I asked for all my funds to be sent back to me last september. Despite several requests for same, I still have not received this money and it is now December 11th.
VIP-Crypto Scam company
I made a inversion by Bank transfers and during the time than I make many deposits was a very god communications but when I ask for widrow many, I lost the contact whit them. They didn’t answer the phone or mails for more than 3 months. Thas meaning that the company likes been disappeared
Scam – donвЂ™t trust these people
We invested a lot of money with this company, now we canвЂ™t get hold of anyone and canвЂ™t get into account we are now in debt because of this so called company . The dress and heart ache is soul Destroying. Feel like fool , please donвЂ™t trust these people with your money
Vip crypto scam
Vip crypto ripped me off its a big scam
vip crypto scam
Hi. I too have a story to tell about vip-crpto having invested ВЈ250 after watching an episode of dragons dens. I realise that there are other more honest bit coin dealers but went with vip-crypto as I am, certainly, no expert and did not check any scam sites. After a short while, The ВЈ250 escalated to around ВЈ5400, a bloody good return. Then came all the persuasive calls attempting to get me to invest more. They, even said that it would be worth my while borrowing large amounts to invest with them. By now, I am absolutely ardent that I will not invest more and tried to make a withdrawal. I think I may have been quite lucky at this point as I managed to convince DAVID GREEN that before I even contemplate more investment, I would need them to show that I could trust them. So they allowed me to withdraw my original investment of ВЈ250. Then, when I asked for more, David proceeded to go into great detail about capital gains. The crux was that to obtain the remainder of the account, I had to pay capital gains of around ВЈ1500. I think you may be ahead of me here but then he told me that I would have to pay the capital gains up front before any money was released. I argued that the capital gains could be taken from my account and the remainder wired to me but he was not having any of it. When I explained to David that this was the way scammers work he finally put the phone down on me and I haven’t been able to contact him since. Still, I did get back my deposit, but there is still over ВЈ5000 in my account that I will never be able to access. Please feel free to contact me should any of you need more info. Cheers and thanks for reading this. Tony.
VIP is BIG SCAM
good day dear fellas, iВґve red your stories, and i am shocked how much money they just have stolen from us all.
I invested as well from the beginning 250EUR. My Broker Sebastian Brauwn (probably wrong name) suggested to put in more money. The more the better the profit. (Somehow i must smile right now. what fool i am)
So i thought ( last year November), lets do it. invest 5000 and take profit. Suddenly they started a robot to trade (only put options). %000 EUR in one position. That was insane. I tried to contect them. Wether email or by phone. Nothing. I realized that i made a huuuge mistake.
So i can go on with the story, but the Fact is right now here for other people, ==> DONT INVEST MONEY with them.
By the way, i will go on Friday to the police. Anybody got any tipps/informations what else i can do?
Vip Crypto linked to CryptonixTeam, linked to InsightsTrader
Vip brokers, and vip-Crypto have same home page. Exactly same
Best Trades, Hawkcode, vip-trades and I bet a few more all same scammers
special warning to the public
I would like to let members of the public who may be considering crypto currency trading not to make use of this company vip-crypto.com . this is a completely false trading company who has set up a trading platform looking entirely authentic, backed up by a management team well trained in handling the client in a manner that gives confidence to the potential client, showing them how easy it is to trade on their platform easily encouraging the depositing of funds promising a dividend of 8% on all capital invested and it will all go really well until you try to withdraw some funds when you will discover that they close down all connection with you and you are unable to email or phone as all the numbers listed on the cleverly set up pages are all false. I back up this information as I traded with them achieved a total account of $20000 only to find what I disclose in this warning
Denying me access to my money
I invested USD 250 on January 29, 2020 assisted by Sean MARCUS and he seemed to professional and nice and before a week ends, he some significant money but he needed more more off-which I didnвЂ™t have at that time.The following week Sean MARCUS was off-sick and someone else took over his portfolio by the name of David Green and I used to talk to Sean on the following number: (44)208 0892515 and others similar. And David Green was very very rude, only what he says goes and doesnвЂ™t care about what you say or what your opinion is. I invested my hard earned money with the company and the people who donвЂ™t care. They claim to be the right people and others are scam. I deposited the same amount on The Greenfields USD 250 and when I decided that I am no longer interested in trading; I withdrew all my money and received with no obligations whatsoever and right now my account in sitting on USD 4323.65 and they are denying me access to my money. This is a complaint. I reside in South Africa
Withdrawal never received
I invested 6750usd with VIP Crypto in March 2020. my account manager was Lisa Forster. i was told that i have made huge profit. i requested withdrawal and was told it would come i am still waiting for it today. the amount of withdrawal promised was $46659.43. that amount of money never arrived in my bank account. Now emails sent to Lisa Forster are returned to me – address not known. today 11/10/2020 an email sent to support services also came back
this is not right. all i need is my money and the profit promised to me by VIP Crypto
VIP-Crypto Scam company
Do not deposit your money in this platform. They will not let you withdraw. Their website is a scam. You cannot contact anyone from the numbers that are provided and even the chat support does not work. After I deposit my money, account managers have been contacting me asking to deposit more and if I decline they will pass me to another account manager and after the 3rd account manager and still I declined and asked to return my money, suddenly I cannot log in anymore. Money down the drain. What a waste.
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Cryptocurrency Investment Strategy 2020: Don’t Make These 50 Common Mistakes
Anyone can make big profits from investing in cryptocurrency in 2020. You just have to invest at the right time — like in December 2020, when no one could lose.
But investing at the right time requires luck. Only those who improve their cryptocurrency investment strategy every day, one mistake after another, consistently crush the masses.
Only the most skilled and disciplined investors are running away with big profits over time, while dreamers and noobs end up hodling useless coins.
This is why I have curated the ultimate cryptocurrency investment strategy: a list of common mistakes to avoid when investing in the crazy crypto world.
We’ll start with basic mistakes and progressively move to more advanced ones. So if you are an experienced investor, make sure to read until the end.
Let’s get started!
1. You Don’t Know the Basics
If you’re beginning, you’re likely eager to trade. I get it, really.
But don’t rush it. Take a little bit of time to develop a basic cryptocurrency trading strategy and to educate yourself.
Do you know the basics of blockchain technology and Bitcoin? Do you know what circulating vs total supply means? Do you understand what inflation is? Do you know about exchanges , wallets , private keys , and public keys ?
If you can’t answer these basic questions, you’ll be in trouble quick enough. Take some time to prepare yourself, it’s essential.
To learn the basics, navigate our website – there are tons of cool resources to get started.
2. You Don’t Take Action
Every day, potential investors miss out on cryptocurrency investing because they aren’t confident about how to get started.
Even experienced investors miss on new tools or cryptocurrencies that could bring significant profits simply from not staying active.
Why? Because they’re afraid to make mistakes. The first step is taking action, so don’t hesitate to dive right in.
Action will result in experience, and experience will result in better decision making. In fact, the experience is all about learning from the mistakes you make.
If you feel ready to make your first investment, then go for it. Even only $10, on any exchange you want, with any payment method you like.
You can’t imagine the difference a small step will make versus not taking action.
This is where your experience will start, and you will feel the highs and lows of investing – it’s a wild ride.
3. You Don’t Understand the Technology
What makes Bitcoin and many cryptocurrencies innovative is their underlying technology. But if you don’t understand the foundations of the technology, the road will be risky.
You don’t want to rely on others’ ‘knowledge’ to make your investment decisions. Until you can judge these projects for yourself, you will be missing out on big opportunities.
After all, the creators of Bitcoin and its first adopters were all techies.
To avoid this, find educational sources you trust, take the time to learn, and most importantly, enjoy the journey of learning.
Once you understand block rewards , consensus algorithms, premining , and all the fancy jargon, you will be an improved, independent investor.
Blockchain technology is continuously advancing, so keep up with it the best you can.
4. You Ignore Fees
Now that you’ve taken action, take your time and find the right exchange with the best fees.
When people start trading, they make lots of trades a day hoping to earn small profits. While this is nice in theory, fees are killing them. Even if they are low, it all adds up.
Do your research before you trade. To become a successful investor, you need to start taking good habits right now.
5. You Overtrade
Some investors, mostly beginners, want to make 20 trades a day. This is dangerous.
Ultimately, many of them lose from fees or because they make bad trades a mistake and then trade more to recover their losses. Only to dig a deeper and deeper hole for themselves.
The reality is that there aren’t 20 good trading opportunities in a day. Trading too much leads to poor decision making.
6. You Don’t Understand Tax Implications
Overtrading also increases your tax liabilities.
At least in the United States and Canada. Most people think that they only owe taxes on profits that were sold back to USD/CAD, when in fact, you owe taxes on every single trade you make – even crypto to crypto.
The IRS and CRA view every trade as a realized gain or loss. Put simply, if you buy Ether with Bitcoin, they consider this a taxable event on a realized gain or loss. They assume that you sold Ethereum to USD, then purchased Bitcoin with USD, even though this is not what happened.
Ignoring both tax implications and exchange fees will severely impact your overall cryptocurrency investment strategy.
Tax implications, in addition to accumulated fees and bad trades, is another reason why you should not overtrade.
7. You Invest Your Life Savings
Rule number one of investing; don’t invest more than you can afford to lose.
You should go into this ready to lose whatever you put in. Ultimately, as the price swings up and down, you should remain calm and still be living a healthy life with room for regular spending.
I’ve heard countless horror stories of people investing greedily with their entire life savings or borrowing large sums of money. This is a HUGE mistake.
Funny enough, even if you hit it big, your greed will likely win you over. For example, if you invest $50,000 and at one point have $150,000, then your mind will rationalize and normalize these winnings to feel less significant than they are.
The next thing you know, the market drops, and you are back at break even, or at a loss.
8. You Think Cryptocurrencies are Shares
Take your time to educate yourself and understand what you’re investing in.
Cryptocurrencies are not shares like stocks. You have no ownership in the company and receive no dividends.
If a company issues a cryptocurrency, then it is very possible for the company to profit or get acquired, with no benefit to you. A company can be doing very well, yet their coin can drop.
The only exception here may be security tokens which can grant ownership to their investors. But even then, it’s up to the guidelines of the offering.
Cryptocurrencies are a different game.
9. You Chase Cheap Coins
Don’t chase cheap coins with dreams of lambos and private jets.
Lots of uneducated investors in the crypto space buy low priced cryptocurrencies because they think there is a higher chance of big returns.
If presented with one coin priced at $0.01 and another at $75, they blindly purchase the $0.01 coin because they think it’s easier for a coin to go from $0.01 to $0.02, rather than from $75 to $150.
This is a common trap.
There are lots of factors that affect a coin’s price, including two important ones: the circulating supply and the real world value of the coin.
More often than not, a cheap coin has a huge supply of coins, which dilutes the price of each coin. If the supply is massive and there is little real-world value, then the coin priced at $0.01 is not undervalued and should be priced that low.
A better factor to consider when looking for coins with growth potential is the market capitalization of the coin. The ‘market cap’ is calculated as [current price * circulating supply] and is often a better (although not perfect) indicator of a coin’s valuation by investors.
If you want to find the next gem coin, look for coins that have a low market cap.
Low market cap coins have more potential for growth, but they also come with a lot more risk (failure, illiquidity , etc.)
Ultimately, you should stay away from those coins if you’re still at a beginner level, and pick your next investments based on their potential real-world value.
10. You Think You Must Always Be Right
I hate to tell you this, but get over yourself. You’re not always right. And it’s okay.
Investing is a game of speculation which involves some amount of luck – even for professional investors. To be a winner in this space, you only need to be right a certain percent of the time.
For example, if you 2x your investment 55% of the time, then you can afford to lose 45% of the time as you will make money in the long run.
11. You Make Sloppy Mistakes
Hold your horses, buddy! Take your time when transferring your money.
Don’t rush, and make sure the sending and receiving addresses are correct. Never type an address. Just copy and paste them. This way you avoid any chance of typos. And hey, it’s faster!
After you copy and paste it, always verify the first two characters and the last three characters match your address.
12. You Don’t Diversify Your Portfolio
Your cryptocurrency investment strategy must involve diversification.
While it may be tempting, don’t put all your eggs in one basket. Every experienced investor hedges , or protects his/her risk by investing in multiple assets.
You might notice some coins correlate where when one goes up, the other goes down. If this is the case and you like both coins’ futures, then invest in both. Your investment will be much safer.
My recommendation: own a minimum of 5 cryptocurrencies.
13. You Over Diversify Your Portfolio
Be sure to pick a number of coins that you can keep track of. This means keeping up with news and price action.
My recommendation: invest in a maximum of 10 cryptocurrencies at a time.
14. You Don’t Do Your Own Research (DYOR)
Research a coin before you invest in it.
So many people invest based off of hype. They see other investors on Twitter or Facebook talking about a coin, see the coin’s price rising, and then buy off of impulse. This often ends badly.
Do your own research.
When researching a project, you should be able to answer the following:
If you can answer these, then it’s a good start.
Don’t be afraid to miss out on investment; there will always be more to come.
15. You Research Poorly
Once you understand WHAT you should research, then next is starting the research.
The process will be time-consuming if you’re just starting. But the more you research, the better you’ll become at it.
Here are a few basics to get started:
16. You Don’t Keep Up to Date with your Investments
As you come to own 5, 6, 7, or more coins, the amount of responsibility on your shoulders increases.
Be sure you keep up to date with all of their developments and price action.
17. You Don’t Have a Plan that you Stick With
Lots of folks let the market highs get to their head. Once their portfolio hits an all-time high , they only want to go higher.
On the other hand, as a coin drops in price, they hold until 0 because they are stubborn about their investments.
The best way to avoid these situations is to set a target, stick with it, and don’t be greedy.
So, when you enter a position, be sure to write down your plan.
18. You Don’t Take Your Profits
If you want your cryptocurrency investment strategy to profit, you have to sell and accumulate profits eventually.
Learn from others mistakes. At the end of 2020, during the big boom of cryptocurrencies, lots of investors became rich IF they sold for profits. On the other hand, many had theoretical profits but overheld into this bear market .
Now, they are stuck holding at a loss, waiting for the next bull run .
Remember: you don’t profit until you sell back to realize your gains.
19. You Don’t Cut Your Losses
Being stubborn is easy. But at the end of the day, the market moves despite how you feel.
Don’t hold a coin you no longer believe in.
You should always ask yourself: “if I had not bought this coin, would I buy this coin right now?”
Be honest with yourself. It’s okay for things to change.
Additionally, if you planned to cut losses at 15%, then do it, no matter how you feel at the time. Don’t rationalize that it will rise – cut your losses and trust the plan.
20. You Buy High
I bet that when Bitcoin was at $15,000 or $20,000, your friends and family were asking you about cryptocurrencies.
That’s because there is a natural tendency for people to follow trends. But those who profit are those who entered the trend early.
DO NOT buy high, especially when a coin is close to its all-time high .
After all, why buy Bitcoin at $20,000 when you can buy it at $3,500? Buying high may be the right decision in some cases, but is a mistake more often than not.
21. You Don’t HODL Hard Enough
On the flip side, lots of investors are impatient and ‘cut their losses’ early because of emotions.
The cryptocurrency market is made of cycles, where prices rise and fall drastically.
If you buy high, then you will need to wait out an entire new market cycle to end up with profits – meaning a new bear , then bull run – which can be well over a year of waiting.
Remember: if you still believe in the project, then your best bet is to be patient and hold strong, even if the price is dropping fast.
22. You’re a Math Noob
Any successful investor needs to understand the basic maths behind trading. If you don’t understand the real implications of a 20% drop, it’s time to learn.
Here are some examples of math-related confusions:
Every 10% drop, makes a bigger and bigger difference.
23. You Don’t Use 2FA
The crypto world is the wild west. Full of opportunities, but extremely dangerous.
One crucial step when working on your cryptocurrency investment strategy is to reinforce the security of your cryptocurrencies.
Enabling 2FA on every sensitive website is the most important habit you need to adopt to increase the security of your accounts.
2FA, or two-factor authentication, is another layer of security upon login. Most cryptocurrency exchanges , wallets , and services offer to enable 2FA.
To enable 2FA, you will need to download an app on your phone – either Authy or Google Authenticator, and sync it with the exchange or wallet via a QR code . It’s super simple.
Next time you go to log in to the exchange/wallet, you will be required to enter your username, password, and the passcode that the 2FA app shows. The passcode changes every 30 seconds, so for someone to hack your account, they will need your phone as well.
24. You Leave Your Coins on Exchanges
One of the most famous mottos in the crypto industry is “if you don’t control your keys, then you don’t control your coins.”
Exchange are huge targets for hackers and are always at risk. When you leave coins on an exchange, the exchange controls your coins. You are trusting the exchange’s security measures and not your own.
Do yourself a favor – keep your coins in a personal wallet.
25. You Don’t Own a Hardware Wallet
I will be straight up: if you’ve invested more than $500 in cryptocurrencies, then hardware wallets are a smart investment.
They are disconnected from the internet, which means that hackers can only obtain your funds if they steal your physical device and also know the passphrase to access it. This makes security a much easier task.
If you have large amounts of money, say over $5,000, then it may be worth buying two. The second can act as a copy to the first one, in case you lose it.
26. You Don’t Know Best Security Practices
Both the wallets and websites you choose to use hold sensitive personal information – do your best to keep it safe!
If someone compromises your accounts, then you can say goodbye to all of your funds. Take security seriously, and learn from those who have learned the hard way.
When using a wallet, hardware or desktop, be sure to:
One more important tip: do NOT use your daily email address when you navigate the crypto space. Use a separate one dedicated to your cryptocurrency investments.
27. You Don’t Back Up Your Sensitive Information
Always back up both 2FA and wallet data.
If you lose access to your computer and haven’t backed up your private keys , seeds or passphrases , then you won’t be able to access your coins anymore.
Same for exchanges: you’ll be locked out of your accounts if you lost your phone and haven’t kept a safe copy of the 2FA keys.
Wallets and exchanges will often guide you through the process, so make sure to read and follow their instructions carefully.
For 2FA, I recommend you backup your keys so when you get a new phone, you can recover all of your accounts to log in. Do not forget to do this, as it will be a huge pain and time sink if you forget!
28. You Fall for Scams
Be careful out there. There are scammers in the crypto space, and they become smarter over time.
While I know you are not a gullible old lady, here are some trusted ways to avoid scams:
29. You Don’t Find a Reliable Community to Learn With
Online communities will be handy when you experience any difficulty in the cryptocurrency space.
Whether you struggle to use an exchange or have a question about the fundamental value of Bitcoin – or anything else, surrounding yourself with like-minded people is essential.
These communities can also provide you with a consistent flow of cryptocurrency sentiment to keep a pulse on the industry.
There are great Facebook groups, like Cryptocurrency Investing and Crypto Coin Trader. If you’re not on Facebook, then you can search on Reddit, BitcoinTalk, and Uptrennd.
30. You follow shills
Shill is a common word for someone who is compensated or has a financial incentive to spread the good word about a coin, even if it is terrible.
I won’t name anyone in particular, but lots of influencers, bloggers, and YouTubers have been guilty of promoting horrible cryptocurrencies – sometimes even scams – because of their own, selfish intentions.
Whether they’ve been paid to review a cryptocurrency or have other incentives (they own a lot of coins, they know the owners, etc.), you will be the one paying the price if you follow their advice blindly.
31. And crowds
Well-known shills tend to cause crowds to follow their footsteps. If they are influencers with thousands of followers, then you will see groups of individuals talking about a coin in unison.
This can result in Facebook threads, Twitter threads, and Bitcointalk threads being created with everyone shilling one coin as a crowd.
Do not follow them blindly. Hear the noise, but do your own research about the coin.
Take a cryptocurrency called ICON as one example. Lots of people bought in, and there was a lot of traction on major forums and social media outlets.
12 months later, after the crowd hype phased away, the price was down by
Follow this advice: when everyone’s talking about a cryptocurrency, it’s time to sell it.
32. You Enter Positions You Can’t Exit
If you hold a coin, but no one wants to buy it, then you are in an illiquid market.
Liquidity refers to the amount of ease with which an asset can be bought or sold in a market. You can check how liquid a coin is by checking its trade volumes on CoinMarketCap.
Liquidity is essential in cryptocurrency:
For any of those scenarios, you’ll need to be able to sell off your position quickly. If the coin you need to sell has low liquidity, you might have to sell it at a lower price to find buyers.
Even worse: if your cryptocurrencies are illiquid, you might have to say goodbye to your money for good.
The less liquid a cryptocurrency, the riskier it is.
If you’re a beginner, don’t even waste your time considering buying a cryptocurrency that has a low daily trading volume.
33. You FOMO
FOMO , or fear of missing out, is a common behavior in the crypto space.
FOMO is when investors feel they are going to miss out on something big, and as a result, will immaturely buy an asset to hop on the bandwagon.
Examples of such persuasion can be project owners or investors tweeting things like: “Huge announcement released next week” or “Big partnership with a major bank to be announced soon.”
Many shills will also take advantage of FOMO by explaining to their audience that a particular cryptocurrency is the next big thing, how the price is soaring, and if they don’t get in now, then they will regret it forever. They persuade investors to buy irrationally – hence FOMO.
Ignore the noise, analyze facts. Your investment decisions should be based on logic, and NOT on emotion.
34. You Fall for FUD
Contrary to FOMO, FUD is short for fear, uncertainty, and doubt. The goal of FUD is to get you to sell, not buy.
So, if the shiller(s) wants to buy into a coin at a lower price, he will start spreading bad news about security vulnerabilities, hackings, team changes, or anything else to cause people to panic sell and lose faith in the project.
Once again – use logic. Understand their motives and don’t act on impulse.
35. You Panic Sell
Besides FUD, another simple reason people sell is that the price drops quickly. But it doesn’t mean it is going to drop more.
Don’t sell in a rush. Have a cup of coffee, discuss with your friends who also invest in cryptocurrencies.
All in all, “control your emotions” and think your decision twice. Don’t forget this is a volatile market and you should be ready to stomach significant losses.
36. You Fall for Media Propaganda
Major news sites will sometimes release very negative, and often, threatening news.
The news may be about a country banning the use of cryptocurrencies, or about how Wall Street doesn’t want to get in. Deceiving headlines are the foundation for propaganda.
A lot of these news articles are intended to generate clicks, controversies, and sometimes even FUD . It’s often very exaggerated.
One more style of content that can negatively persuade you is sponsored content. Websites and media you trust will promote a product not because they use it and like it, but because they’ve been paid to promote it.
Sponsored content is fine as long as it is clearly noted that the content is paid for. Many times, sponsored content looks just like non-sponsored content, which can be deceiving.
The most effective change you can make to improve your long term cryptocurrency investment strategy is to read these articles – not just the headlines – and cross-reference opinions. Stay calm and remain skeptical at all times.
37. You Are Emotionally Attached to Your Coins
Many investors become attached to their investments at an emotional level. They put lots of faith into their investments, and hate the thought of selling before the next pump.
I have met several crypto investors who have been down 95% on an investment. They read that the project has been abandoned by the team or delisted from exchanges, but they still won’t sell because they irrationally believe it will come back.
This goes along with our personal biases we mentioned earlier – humans don’t want to admit they are wrong.
Don’t get emotionally attached to your coins. Always invest based on logic.
38. You Lack Patience
Be patient – because the sophisticated, wealthy investors are.
You may feel desperate to find the next big investment opportunity, but “ whales ” have enough capital to sit on the sidelines for two or more years waiting for the right time to strike. They can easily stay in a bear market, with losses, for years.
In other words, wealthy investors can afford to be in losses for multiple years to shake out weak HODLers. If you lack the patience and knowledge of this, then you will always be buying on the wrong side of the market.
If you are patient enough to wait even an entire year to buy in a bear run or HODL until the next bull run, then you will benefit greatly.
39. You Don’t Stay Clear Headed
Remember to stay calm and relax.
You should have invested an amount you are comfortable losing, so have fun with it. Don’t let the negative press or big news sway you.
If you do let negativity get to you, then you are more likely to make poor decisions.
Disconnect from crypto from time to time to stay clear-headed.
40. You Don’t Understand the Market Dynamics
Bitcoin only makes up about 40-50% of the market’s liquidity . There are thousands of altcoins, and they work in correlation with Bitcoin.
Not understanding these correlations can lead to poor and costly investment decisions. Those who make money trading crypto understand these dynamics like the back of their hand.
There are three situations for how Bitcoin and altcoins affect one another:
95%, while Bitcoin dropped
All of these time frames can be viewed using coinmarketcap.com. Take your time and look at different historical time frames to help you better predict the future market!
Takeaway: if you think the market is ready for a bull run, then add more altcoins to your portfolio. On the other hand, if you believe the market is going down, sell your altcoins for Bitcoin, or even better, for fiat or stablecoins .
41. You Ignore Airdrops
Airdrops are free money with little to no effort.
Many times, new projects will airdrop their token as a marketing strategy to raise awareness.
You might need to register on their website to claim the airdropped tokens, but sometimes, you have to do nothing at all.
Check out AirdropAlert to be on top of every airdrop opportunity.
42. You Don’t Prepare For Forks
Hard forks are similar to airdrops from an investor’s standpoint – free money! Most investors I know miss out on these opportunities, which can turn out to be quite lucrative.
Bitcoin Cash is an example of a hard fork of Bitcoin, where all Bitcoin holders received 1 Bitcoin Cash for each Bitcoin in their wallet. Bitcoin Cash trades for well over $100 or $200, so these coins you can get for free, aren’t cheap.
Just make sure the wallet you are using support the fork. Simple as that!
Use CoinsCalendar and search for the category ‘hard forks’ to stay up to date.
43. You Don’t Use the Best Tools Available
The cryptocurrency industry is full of creative and hardworking people who offer some handy products and services.
Don’t rely on only yourself, use all the tools at your disposal to craft the best cryptocurrency investment strategy and make better decisions.
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44. You Hold USDT
Tether , or USDT , is a stablecoin that is pegged to the value of $1. Each Tether is supposed to be backed by one USD in a bank.
There are two dangers to holding USDT:
While it’s okay to enter USDT positions for short-term trades, don’t hold it for too long.
45. You Don’t Buy the Rumor
There’s a popular narrative that says, “buy the rumor, sell the news.”
Often, cryptocurrency projects launch their coin before a final product is made. Rumors can spread around the community about when their product will be complete, which companies will partner with them, and which exchanges the cryptocurrency will be listed on.
Usually, these rumors create lots of hype. The hype can grow to be so strong that when the real news is released, the price drops.
One example is the Verge project, which at one time had rumors spread by John McAfee and other prominent figures, discussing partnerships and innovations. The price was skyrocketing on rumors, and some made the best decisions of their lives by getting in early.
46. You Buy the News
On the other hand, when the news comes out, do not buy it – it’s likely too late. This is when those who bought the rumor will take their profits.
When the time came for real news to be released about Verge, the price dropped drastically – well over 80%
So, instead of just buying coins at the time the news is released, take some risk. Buy the rumor, wait for the bubble to grow, and sell when the news comes out.
You’ll thank me later.
47. You Don’t Understand How to Read a Trading Chart
Once you understand some basic dynamics such as supply and demand, then you should start learning how to read trading charts, also known as technical analysis.
Technical analysis is a science which helps you better predict the future by analyzing historical market data. You’ll gain a feel for when markets are about to turn, or if assets aren’t priced properly.
For some, it’s super helpful and core to many people’s cryptocurrency investment strategy.
BabyPips is a popular place to start learning technical analysis, and it applies to all markets, not only crypto.
Knowing how to read charts can give you an advantage over those who don’t – and it can be quite lucrative.
48. You Don’t Prepare for Bull Markets
Do you believe the market is dead and the entire crypto industry will vanish away just because Bitcoin drops 40%? Of course not. These cycles happen, so don’t be afraid to go against the crowd.
If you sold when you were in profits, then you should have fiat ready to invest in cryptocurrencies during bear markets.
Keep these funds available in your wallets and be ready to accumulate your favorite cryptocurrencies when everyone else in the market is panicking.
But, don’t FOMO! Generally, bear markets can last for well over a year. If you buy the dip too early, you’ll end up losing a lot of money.
Bear markets should also give you plenty of time to find some altcoins worth investing in. So do not wait until the bull market is back – do your research in advance.
49. You Don’t Listen to the Market Sentiment
If the overall sentiment varies, then so may the price.
While you may expect a bull market soon or be optimistic about a cryptocurrency, other investors may feel the opposite way.
This is why listening to the sentiment of other investors in the industry is crucial. If you don’t, you might miss the next bear/bull market, or the next cryptocurrency about to moon.
So, how do you listen to the sentiment of your peers?
Remember that sentiment is just one indicator of the next market movements.
When crafting your cryptocurrency strategy, cross-reference different indicators from several sources. Always use logic over emotions.
50. You Don’t Earn Interest From Your Crypto
You cannot earn interest from cryptocurrencies as you do with your bank account, but there are ways to grow your bags simply by holding.
There are three ways to earn interest on your cryptocurrencies:
6% a year. For minimal risk, not a bad deal.
51. BONUS: You Only Invest in Cryptocurrencies
This last mistake comes as a surprise, but why invest only in cryptocurrencies? It’s wise to diversify your portfolio not only amongst cryptocurrencies, but stocks, bonds, and other assets as well.
The stock market is indeed a safer bet than crypto, so if you want to be conservative, put say 15% of your investment funds into crypto. If you hold safe stocks and bonds with the remaining money, then you should be pretty safe.
Disclaimer: we do not know your financial situation, nor are we financial advisors.
The world is your oyster, so don’t be afraid to invest in different markets and niches.
Well, you made it to the end, congratulations!
Although there are plenty of mistakes to avoid, most of them are common sense and require no memorization. Simply being aware of them should be enough to make you think of and improve your cryptocurrency investment strategy.
Which mistake from the list prevents you from making more profits? Which one do you make again and again? Do you make mistakes that aren’t listed? Let me know in the comments!
Lastly, here are more resources you might like:
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