Are These Common Newbie Crypto Mistakes Currently Costing You Billions?

On the surface, cryptocurrency seems like a layman’s way into lucrative investments. This every person’s approach is great for taking at least a little wealth away from Wallstreet. Unfortunately, it also means that people with limited to no real knowledge in this area are at risk of losing pretty large sums if they aren’t careful. In fact, roughly$12.4 billion vanished from beginner wallets alone throughout 2024!

That’s a shocking statistic and, while a lot of those losses were a result of quickly increasing crypto scams, many also stem from a few common mistakes that you’ll want to avoid. And we’re going to help you do precisely that by considering the most common of them here!

# 1 – What is a Blockchain Anyway?

Investment jargon isn’t easy for newbies to understand. This is especially the case with crypto, where you’ll be getting to grips with brand new currencies and markets, as well as general considerations about stocks and shares. One term you’ll especially come across is the blockchain, which you may broadly understand as a kind of crypto ledger. But a surprising number of investors misunderstand how blockchain actually works. And that can soon lead to poor crypto tracking and questionable decisions.

The main blockchain misunderstandings costing new investors money right now center around the permanence of crypto payments, which can’t be undone after completion even if you’ve sent money to the wrong address! Understanding these stipulations and ensuring rigorous compliance could instantly start saving you moneyas an investor.

# 2 – The Weight of Weak Passwords

Crypto scams increased by an astonishing66% last year, and were the driving cause for notable wallet losses. Yet, a surprising amount of new investors still use weak passwords. This mistake can be expensive, and it’s a frustratingly easy to rectify.

In an ideal world, crypto wallet passwords need to be bulletproof. This means using unique passwords for every wallet and using multiple characters that avoid any correlation. Admittedly, this does have the downside of making passwords harder to manage, but a password manager can help with this. Companies likeWallet Recovery are also on hand to recover your crypto wallets if you ever forget a password down the line, and their services are guaranteed to be more affordable than the losses you could face otherwise.

# 3 – The Emotional Pull

While die-hard investors  might be able to switch off their emotions and make great judgment calls, you won’t always be able to do the same as a newbie investor. This is especially true because of the changeability that comes from crypto markets, with roughly 84% of crypto investors reporting that they make decisions based on FOMO. Unfortunately, this emotional pull can result in poorly researched and generally inadvisable investments.

It’s far better to take a removed approach to investing, which you can do by avoiding things like crypto influencers, taking regular market breaks, and tracking your emotions, as well as your purchases.

Crypto can be a minefield for new investors. Make sure an unexpected blow doesn’t cost you by avoiding these mistakes!