Richard Iamunno is the CEO of Atlantic International Capital Digital Assets Group, a company that specializes in offering a top-tier digital asset solution platform for digital investments. He has long encouraged investors to consider the many benefits of buying cryptocurrencies, but he is not ignorant of the risks of investing in the market in the wrong way.
Iamunno outlines five huge mistakes many people make when investing in the crypto market and explains how these can be best avoided by those who want to turn maximum profits on their investments.
Iamunno points out that one of the biggest mistakes crypto investors make is failing to create a balanced investment plan. There has been a lot of hype about crypto in recent years, he points out, as some have gotten in on the market early and made huge profits; this had led many investors to dump other long-term investments in hopes of generating the same high returns.
However, the crypto market is far more volatile than other investment options and many have lost huge sums of money by getting in on the market at the wrong time. Richard urges would-be crypto investors to keep other investments they already have in place and never borrow money to invest in cryptocurrencies. Using only surplus money or new income can limit one’s investment plans, but it will also protect from financial ruin.
Along the same lines, he points out, many investors make the mistake of failing to plan an exit strategy before they start investing. Like those who invest too heavily in crypto, these investors are caught up in the market excitement and fail to consider when and under what circumstances they would sell their cryptocurrencies.
Iamunno strongly suggests investors consider their personal financial situation with care and decide on a profit and loss target at which cryptocurrencies would automatically be sold.
Careful research is always in order when investing in the crypto market. Many people make the mistake of getting caught up in fads and buying a cryptocurrency because it’s popular or their favorite celebrity is endorsing it. He concedes that fads do impact the crypto market; if everyone is buying a particular cryptocurrency, the price will go up even if these buyers are not basing their decision on careful revision of the fact.
Unfortunately, in such instances, the price is likely to crash just as quickly as it rose. In such instances, the vast majority of individuals who invested in such a currency are left with nothing to show for their investment.
Two other common mistakes are investing in only one cryptocurrency and investing in the right cryptocurrencies but at the wrong time. Currencies such as Bitcoin, Ethereum, Dogecoin, and a few others seem to generate the most buzz, and many do not realize that there are many other viable currency investments that could generate good returns.
Investing in multiple cryptocurrencies can protect investors from losing too much money if one crypto starts to lose value; furthermore, it can also help investors get to know the pros and cons of various currency options in order to turn long-term profits in the crypto market. Even choosing the right cryptocurrencies to invest in won’t work well if one does not know when to buy and when to sell.
Iamunno points out that many investors make the mistake of getting in on the market when the coin is high in value because they think it will continue rising, and they will be able to recoup their investment, but things often don’t work out this way. To make matters worse, those who buy as the coins are hitting peak value tend to sell as soon as they start to drop in price, without considering the fact that these coins could be a viable long-term investment if one exercises a bit of patience.
Iamunno restates what he said earlier and emphasizes the need to plan an exit strategy, buying and selling coins only at pre-determined times. Doing so may not turn the highest possible profits, but it can protect an investor from serious losses.
The cryptocurrency industry is a relatively new one, and even savvy investors make mistakes and lose money. However, he notes that many investors who incur heavy losses do so needlessly. They fail to properly plan their investment, create an exit strategy, and do careful research to find the best coins to invest in and the best times to buy them.
Considering the pointers outlined above can enable an investor to turn a profit and avoid heavy losses in what is still a volatile market with huge, often unexpected fluctuations.
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