My 5 Biggest Bitcoin & Crypto Mistakes Explained [

In this video, I want to share with you the five biggest mistakes that I have personally made in my crypto investing journey. My hope with this video is that you will not repeat these same mistakes and that you can learn from where I messed up and lost money and yes, sometimes very large amounts of money. I really hope that it's going to be useful for you

and yes, of course, please feel free to go down to the comments section and dunk on me doing some of these things. For some of these, I definitely deserve it, but also much more than just dunking on me down the comments section. I would love to hear from you what your biggest mistakes in crypto have been. I think there's going to be a lot of great

a whole range of other great cryptos, then check out Kraken. Kraken is one of the best exchanges in the crypto industry and is a fantastic option, especially for those you based in the United States and the European Union. There is a link down below in the description where you can get some of your kind. Okay, the first big mistake that I want to share with you

was over diversifying my portfolio. At one point, I think I had like 50 different cryptos that I owned. It was insane, man. There was zero way that I could keep up with the different updates, the news, the dramas, the token swaps, all this stuff going on as well as the nightmare of having like 15 different wallets to hold all these different cryptocurrencies. I had become addicted

to collecting cryptos. It was like, like Pokemon, gotta go out and catch them all, right? No, no. It was a terrible idea. It was an absolute information overload for me. I missed so many selling opportunities because I couldn't keep track of everything that was going on. And it was a terrible blow to my portfolios long term value. I introduced way too much risk in my portfolio

and I drastically lowered my reward potential as a result. I would have been much better off just focusing on a much smaller handful of cryptocurrencies and putting more funds into the winners and then making timely exits. And to be honest, I am still over diversified. There are about 20 cryptos that I hold right now, which is totally nuts. And I'm actively looking to exit most of

my different altcoin positions. But there's a few that are just hanging on from two years ago. And the reality is that there is no reason for these to turn into long term holds. I should have sold them two years ago and moved on with my money. But there is a small handful of cryptos that I actually have a long term view for. Key among them are

Bitcoin, Ethereum and Monero. There's a few others that may make that list but very, very few. And look, a bit of diversification is a good thing in your portfolio. Bitcoin may be the king of the crypto markets, but as far from being where all the action is price-wise. I mean, yeah, there are some really, really cool cryptos out there that give great staking rewards or have

excellent fundamentals or just great token models overall. But do not make the mistake of being seduced by every other coin that you come across. You will get hit very hard if you do this. So be careful. The next big mistake I made was cloud mining. I know, I know. And hindsight seems so obvious, but I lost a lot of money on cloud mining. While most cloud

mining companies are 100% straight up scams, there are a few companies out there that are not straight up scams. And that actually run machines. And of course rent those machines out to you at a significant markup. The problem is that all of them are in the market. All of these companies suck really badly. Sure, it looks good when you buy it at the start, but there's

a few things that make cloud mining ridiculously dangerous for the end consumer and highly unprofitable. Because the company, they hold all of the cards. You have zero recourse if things go wrong and things will go wrong. It's almost inevitable. The company, they get to take big profits. You on the other hand, you will almost certainly never see an ROI on your investment. You buy the machines

for the company. You pay their staff. You pay their electric fees. And when the Bitcoin network changes, and it does, we've seen how rapidly the changes have happened in the Bitcoin network here on the channel. I've been talking about that a lot. Then you are going to be left out in the cold, either with a canceled plan or a plan that makes no money at all.

And the company, they're laughing the whole way to the bank. They got a pile of cash upfront from you. Now they own the machines as well, which they can continue running profitably, not worrying about you and your canceled plan or any of that other stuff. They keep making money. Do not cloud mine. Don't. You will lose money. The only mining option for you is to get

your own machines and run them yourself. Now, if you really want to get into mining, the only mining option for you is to get your own machines and to run those machines yourself. So if you can find it home, then go for it. Buy the machines directly from a provider like Bitmain, buy the power supply unit, pay the shipping, pay the customs taxes, and make sure

that you have got damn cheap power where you live, as well as the space to actually host these expensive and loud machines. If you can't do that, forget about it. Just buy and hold Bitcoin. That's it. Next thing we're going to discuss is trading. Trading indeed can be very profitable. It's true. But only for a small percentage of traders. My big mistake with trading was trading

before I had any idea what I was doing. And this is probably one of the most common mistakes that new people to the crypto space make. You look around on social media and everyone is getting fabulously rich from trading, except for you. So you think, hey, look, how hard can this be? All those other guys are doing it, making a lot of money. I'm going to

make a bunch of money too. Look at this coin over here. It's going up big time. That must be a winner. I'm all in. Oh, man. I lost so much money trading in the early days of my crypto investing journey, because I had no idea what I was doing. Right. Throw money into a digital bike pump. Yeah. Rect. Buy resistance. The next R P. Rect. Set

no stop loss on that. NEM trade. Bad news bears. Man, it's going down. It took a long time to really learn the ropes of technical analysis. And I'm still learning something new all of the time. It is a crazy big topic. And there's so much to learn. But realize that to make money in crypto, you do not have to trade. You really, really don't. But if

you are going to trade, and I know the lot of you will, you will actually get out there and do some trading. Then you need to get a lot of money. It's super serious about educating yourself about trading before we actually start putting your money on the line. Take the time to learn how to do it. You may even want to invest in a trading course.

Money well spent. If you're seriously thinking about trading, you will also need strong risk management strategies and a very cool head to ride out the crazy markets and also use tools like three commas to help you to manage your trades pro tip. If you're starting off trading, start with a paper trading account to test your strategies. That way your real money is not on the line.

Take your time. There will always be more trades in the market. Okay. Next up is not selling. This is a super calm mistake that crypto investors make. Watch our cryptos pump like crazy. And then you don't take profits. Here's an example for my life. I bought icon for around $1 back in 2017. Then I watched icon pump by old over 10X. I think I got to

like $11 or $12 and I didn't sell. I also didn't sell once the market started turning around. And the writing was on the wall. The market was having a big turnaround. I could have sold with $5 and still made a killing on my icon. I just kept holding it. Irrational greed took over. I took my plans and I just threw them out the window. And I

just watched it drop and drop and drop. Now icon is around 30 cents. And I'm still holding my bag is something. I'm going to get a punishment to myself. If 2020 Lark can just go back and slap 2017 Lark for his foolishness, that'd be great. That'd be great. Always have a selling strategy. Make damn sure that you actually pull the trigger on your strategy as well.

And I know it can be hard once that greed grips you. But not selling is even more painful than missing out on any farther gains that may or may not happen. It is very brutal to watch your crazy paper gains that you made by your smart investment turn into crushing losses. If you need some ideas for when to sell, I recently made a video covering this

exact topic. So you may find it useful. Remember nobody ever lost money by taking a profit. You're not betraying a community by selling your coin or any of that kind of stuff. You are here to make money. Do not get wedded to a coin. It will not end well for you and your money. And the final mistake that I want to share with you is FOMO.

The fear of missing out. Man, I really let my emotions take control of my investing in the early days. There are literally sleepless nights where I'd just be up thinking about, oh, this coin got to find a way to, it was crazy. I had such a strong fear that I'd miss out on the next big move. And if I waited a few days, I'd be in

big trouble and miss out on massive gains. This of course led me to making a lot of moves based on fear and based on greed instead of rationality. You are your number one worst enemy in investing. Be aware of that fact and take control of your mind. These days, I've seen it all. Nothing really surprised me. And generally I have quite a steady control of my

emotional state when looking at investments. Some of you wonder, like, how can it be so calm when the price is going down like this? Like, eh, it's all good. Seeing this plenty of times. I no longer have this fear of missing out on a coin. Look, if I want to take a position, I take my time. I wait for a good entry. And if I miss

my entry for a particular coin, whatever. There is always another opportunity just around the corner. Do not be your own worst enemy in investing. Patience and strong steady hands are what create long term winning in crypto. Remember that. So those are just some of my mistakes that I have personally made in my crypto investing journey. Have you made some of these same mistakes? What is your

biggest mistake that you've made in crypto? Again, I'd love to hear all your thoughts down below. Make sure you check out the comments section. Sure, there's been a lot of great knowledge shared down there, especially if you're new. Go down there and find out mistakes that other people have made and don't repeat those mistakes. It'll help you out a lot in the long run. Anyway, thank

you so much for watching today's video. I hope that you're having an awesome day. Wherever you are out there in the world and whatever you're doing, I hope you're having a great one. Thank you for watching the video. Make sure hit that thumbs up button. If you did, enjoy this one. Subscribe to the channel if you're new around here. Long live the blockchain. And peace out

till next time. Bye.