Crypto continues to wax strong as more investors come into the market. Like with any investing, crypto investing comes with its own unique problems. And investors are wont to make mistakes where there is money involved. A recent survey on CryptoVantage has shown the most common mistakes made by investors in the market.
The survey outlined a series of mistakes that investors say they have made. These mistakes ranged from forgetting passwords to falling for scams. Situations where investors have lost their crypto due to simple mistakes.
Respondents highlighted the biggest mistakes they have made while in the market. Which the survey then ranked according to the highest per percentages.
Biggest Mistakes Crypto Investors Make
According to the survey, the biggest mistakes investors said they made was selling their crypto too early. 38.2% of the poll respondents said that they had panic-sold their coins. Panic-selling remains a big issue in the market. But more especially for new investors who are not used to the market fluctuations.
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Moving on, 32.5% of the respondents said that they had invested everything in a single coin. Which could lead to investors losing all of their money if the coin ends up not doing well. Diversification is always advised in the investing world. Putting all of their eggs in one basket opens investors up to losing more money than they would if they spread it out.
27.8% of respondents said they had misunderstood the market. Jumping into the crypto market too early without completely understanding how it worked. Leading investors to make mistakes that they would otherwise not make had they understood it better.
Total cypto market cap continues to trend at $1.5 trillion | Source: Crypto Total Market Cap on TradingView.com
Other mistakes included release coins before receiving payment. In the case of peer-to-peer transitions. Buying coins high and then selling them low. Thereby losing money. Carrying out transactions using third-party platforms. And last but not least, losing their passwords. A surprising 17.1% said that they had never made any of these mistakes in their time investing.
Forgetting Passwords And Keys
A recurring problem also was investors reporting that they had forgotten their passwords. With 39.7% of the respondents saying that they had forgotten their passwords at some. Resulting in the loss of their crypto in some cases. But 95.6% of the people who had forgotten their passwords were able to recover the coins using a recovery service.
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Crypto recovery services are on the rise as crypto popularity grows. People who had crypto when they were worth next to nothing at some point usually report forgetting their passwords. And that is where the recovery services come in. They provide investors with peace of mind in case they end up forgetting their passwords.
Scam rates were also high, with 32.6% reporting being a victim of a scam. But as a result, investors reevaluated their security strategies. Leading to stronger storage choices and better decisions going forward.
Featured image from FreshBooks, chart from Tradingiew.com