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Biggest Beginner Mistakes

Learn from others' expensive lessons before making your own.

6 min read
Why This Matters

In crypto, mistakes are often irreversible. There's no bank to call, no transaction to dispute, no insurance to claim. Understanding common mistakes before you start can save you from devastating losses.

Critical Mistakes

Investing More Than You Can Lose

Using emergency funds, taking loans, or investing rent money into crypto.

Consequence
Financial ruin when prices drop 50-80% (which happens regularly).
Prevention
Only invest money you could lose entirely without affecting your life.

Losing Access to Wallets

Forgetting passwords, losing seed phrases, or not backing up properly.

Consequence
Permanent, irreversible loss of all funds in that wallet.
Prevention
Write seed phrases on paper, store securely offline, test recovery.

Falling for Scams

Sending crypto to "giveaways," clicking phishing links, trusting strangers.

Consequence
Immediate and complete loss of sent funds.
Prevention
No legitimate entity will ever ask you to send crypto first.

High-Risk Mistakes

Buying High, Selling Low

FOMO buying during price spikes, panic selling during crashes.

Consequence
Locking in losses and missing recoveries.
Prevention
Make decisions when calm. Ignore short-term price movements.

Following Influencer Advice

Buying coins promoted by YouTubers, Twitter personalities, or celebrities.

Consequence
Often these are paid promotions or pump-and-dump schemes.
Prevention
Do your own research. Question motives. Ignore hype.

Sharing Too Much Information

Posting holdings publicly, sharing wallet addresses, discussing investments.

Consequence
Becoming a target for scams, hacks, or physical threats.
Prevention
Keep your crypto holdings private. Stay anonymous.
The Best Investment

Before investing any money in crypto, invest time in education. Understanding howwallets work, how phishingscams operate, and how to secure your seed phrase will protect you far more than any other knowledge.