Being new to crypto trading does not necessarily mean one must make all the mistakes to experience and learn. Why not start smart as a beginner? For this, it is essential to be thorough with the common mistakes to avoid when selling or investing in cryptocurrency. Knowing what they are can help potential crypto traders begin their crypto journey on an informed and solid footing without incurring unnecessary losses.

1. Buying because the price is low

Low prices may not always hint at a bargain. Sometimes, the prices are low for a reason. So, being wary of the coins with falling user rates is crucial. Many developers formulate a project and leave it after a few years. Consequently, the coin has not been updated, a common reason for its low price. So, one of the mistakes to avoid when selling or investing in cryptocurrency is buying without research, merely because the price is low.

2. Failing to pick the right crypto exchange platform
Before one starts trading, one must research and choose a reliable cryptocurrency exchange. Sadly, many beginners rush into this step, which later proves to be a costly mistake. So, when selecting an exchange, look for the following features:

• User-friendliness and simplicity
• Low fees
• Vast selection of coins
• Good asset prices
• Useful trading features
• Regular review of security terms
• Personalized and reliable support
• Good educational content
• Secure and authentic

3. Diving in without much study
One cannot learn trading by watching a few tutorials online or reading eBooks. To be well-versed in the skill, one must acquire in-depth knowledge before investing. So, it is vital to spend time learning the basics. One must know the following:

• What it entails
• Its types
• Risks involved
• How it works

One can find several resources and courses online to equip oneself before taking the plunge.

4. Inputting the wrong wallet address

Transferring cryptocurrency between digital wallets is how to take custody of one’s investments from an exchange or send funds from one party to another. However, a mistake users make when transferring crypto coins to a wallet is mistyping the wallet address. Consequently, the crypto goes to the wrong address and is unrecoverable. So, be careful when typing the address.

5. Ignoring trading costs
As a trader, one will have to make several trades in a day and pay a transaction fee to the exchange for every trade. Over time, this cost accumulates and cuts the profit margin. Some platforms may even charge a fee when withdrawing funds. So, be aware of this fee when accounting for the profits.