## **I, Common Mistake****1. Not knowing whether you are a Trader or a Holder** It sounds simple, but these are the most common mistakes among newbies. Or do not know when to hold, when to trade (Although everyone understands these two simple concepts) Traders make money in the short term and holders do the opposite. However, when entering the market they are often confused and do not follow a consistent strategy at all. For example, you enter this market and you intend to hold BTC until the uptrend season after the sale, but the market does not increase in a single circuit! It will have strong price dumps that make you think the whole market will crash and not recover anymore and you quickly cut your losses. After that, the price recovered, then bought again at high price and led to swing high. **2. Buying and selling by emotion **Emotional trading is possible because there is a mentality of getting rich quick** and making quick money, leading to not studying the project carefully, they have no distinction. buy and sell but simply feel that it is profitable to buy. In addition, the emotional buying and selling is also because they *** listen to the words of KOLs this and that, “this” channel “that” channel, at first they won a few bets, then when they all in, they lose again. hole. Finally, sentimental buying and selling is based on ***untested*** information sites, it is possible that people know this media is being directed by the bookie in their favor. If you do not re-verify it before proceeding with the transaction, chances are you have fallen into the “trap” and may lose your money. **3. “Put all your eggs in one basket”** Usually, investors with initial capital and knowledge will choose to follow a project and hope to change their lives from it. This will give them focus, but it will also increase the risk. What if unfortunately that project they follow is a scam project? Certainly not only gain nothing but also lose all the capital and time I spent. Of course, I also do not recommend that you allocate too many different projects. You yourself will not have enough capital and resources to be able to follow all projects. For an investor, managing a portfolio of **3 – 5 projects ** will be a reasonable number. Let’s see if you are managing more than this number suggests The advantage of new investors is excitement, but its downside is a matter of knowledge and experience. Will older investors make the same mistakes? In the next part of this article, we will find out! **4. Thinking that the crypto market is “*SAME”* as other markets **Many people would think that the ultimate essence of the Crypto market is also a financial market. So it will behave similarly to other markets like Stocks or Gold. However, this is a completely wrong thinking. Why? The nature of the Crypto market also has similarities with other financial markets. However, it is not exactly the same. Crypto market has always had its own characteristics. Some of the differences are: Liquidity, Volatility, Legal Regulations, Accessibility, etc. **5. No Risk Management** Risks are future events. Therefore, investors often find it difficult to control risk, even ignore it and receive heavy losses as a result. However, risk is part of investing, and failure to manage risk often has unfortunate consequences. Here are two mistakes that new investors often make. * ***First:* Put money into a project (all in)** In Crypto investment, decisions like putting all your eggs in one basket or all your hands on a certain project is one of the manifestations of the lack of risk management. It is a fact that this market is *** too volatile**. Even during strong uptrends, Crypto still has short-term corrections. When you put all your money into a project, the risk you can face is: +) When the coin price drops, you will suffer a loss at least on paper, leading to your psychology being affected. +) You will have no capital left to continue buying more tokens if it is a good token. ⇒ The fact that you bet all your money on a “win-win” style on a project is really more like gambling. * ***Second: *Don’t protect the results** Personally, for this market KEEPING MONEY is much harder than making money. In the investment process, when we have made a profit, we must think about how to keep our profits. Don’t follow the market too much! You can have good luck in Crypto investing turning your capital from $1,000 to $10,000 in just a few months or even days. However, no one can be lucky forever if you don’t have the knowledge and refuse to protect your results but continue to follow the market, you may later lose all that you have accumulated. before that, not only money but also time and effort. **6. Not understanding how the crypto market works** Assume you have no knowledge of the seasons in Crypto. You step into the market in the right season and watch all your “paper” investments skyrocket. You are excited to think that you are talented and do not take profit at all to preserve the profits that you have. Unfortunately, the joy is not equal. Winter begins and you watch your account shrink, but you still have hope that the market will recover. But no, the harsh winter comes when you least expect it. That’s when you see your assets “fall off” and start to panic. You accept losses, try to sell, sell your investments as quickly as possible and curse the market. **7. Do not improve knowledge every day** Maybe when you just learned crypto, you are very eager to learn, because then you are like a blank sheet of paper. However, at some point, you feel you know enough to stop learning or you get bored. But in a rapidly changing digital world like today, if you don’t improve yourself, you will become left behind. And that’s even more true for the cryptocurrency market as developments in this market always happen extremely quickly. Or this trend or that trend comes continuously, the money flow is constantly moving. Of course, it’s the same in any field, without knowledge, don’t expect to keep money, let alone earn. Failure to cultivate knowledge in the crypto market will lead you to make the wrong decisions. For example, a friend of mine did DCA GMT =)) ## **II, Tips to improve your ability to invest in the crypto market** **1, Diversify your portfolio** We We should diversify instead of putting all our eggs in one basket. However, it does not mean that investing in spreading all types of projects will buy. In my opinion, a portfolio suitable for the majority of people will be from 3 to 5 projects. If more, make sure you have enough time and resources to manage and track it effectively **2. Have an effective capital management and allocation plan** Whether you are a novice or a veteran, you should do this. Trade Coin is like business, you need to have the right strategy, management and cash flow allocation. You will need to adjust that plan continuously as you trade. **3. DCA** Since most of us have small and medium capital, we will usually buy a block. However, experienced investors do not do that, because of their large capital, they prioritize preserving their capital, they buy at many points and also sell at many points. **4. Set an investment objective such as a profit taking point** Remember that the goal of an investment is profit. Therefore, if you are a “newbie” in this market, set your take profit not too high. And when you have reached that goal, boldly take profits instead of hesitating as before. You can take profits at different stages when you see a profit, but not necessarily at the same time. The best way is that you should gradually withdraw the principal to preserve capital, the remaining interest will be invested to earn more. **5. Invest with idle money and can lose** Invest with money you can accept to lose without much impact on life if unfortunately the investment loses. Trading psychology is very important. It can affect your decisions when you think about losing that money all the time. **6. Know when to hold, when to trade** We can choose to become Trader or Holder or even both depending on the time. However, it is important that you trade and operate consistently with that strategy. For example, in a downtrend, trade and do not hold, and in an uptrend, you should hold for a long time, not jump out. **7. It’s a good idea to keep a trading journal** Trading journaling will help you deal with the emotional issues that influence your trading decisions. It sounds pretty basic, but these are very effective ways. Unfortunately, many people do not pay attention to it because of its complexity. Then when problems occur, they will not know where they went wrong and how to improve. Keep detailed records of your transactions, the reason you made that decision,… Adjust actions that you feel have emotional factors that lead to wrong decisions when you make a decision. transaction. Repeating this continuously will give you better control over the entry/exit timings when trading. **8. Don’t invest in things you don’t understand** Don’t invest in projects you don’t understand. I know that most people listen to KOLs call the deal and then buy it without learning about it. Secondly, investment information has not been verified, there are more and more sources on the Internet about this field. It can be positive or negative. In order not to be adversely affected by such news, please verify its accuracy. Don’t just listen and trust one way. **9. Constantly updating information** The Crypto market operates 24/7 with no days off like stocks, so to be able to follow the market closely, keep up to date with the latest news related to it. Usually it’s all on Twitter!!