Advice can be a fantastic thing, it can help us improve in pretty much everything that we do. However, on the other side of that coin, it can also be devastating. Advice is often given with good intentions, yet some of the advice given, no matter how good the intentions are can be bad advice, advice that can end up hurting you or your accounts should you decide to follow it. So let’s look at some of the worst advice that you could ever be given about cryptocurrencies, don’t get us wrong, the advice probably worked for someone, but it is a risk to follow it and we would recommend that if you hear any of the following that you avoid that advice like the plague.
Buy, Buy, Buy
Buy, buy, buy, advice that is given out a lot, in the past, at any time throughout the life of coins like Bitcoin, if you had bought and helped you would now be in profit, it is as simple as that so the advice would have done pretty well. For other cryptocurrencies though, that advice may not be quite as good, a lot of them have had their all-time highs long ago and have not recovered back to that value. If you simply buy without any real plan or idea of where you will get out, including the historical process of the asset then you could be in for a disaster. Only buying can lead to a lack of funds, it can lead to losses should the markets turn and while it can make you money, it is a risky strategy to simply continue to buy at every opportunity that you can. There have been people doing very silly things, selling their house to put all of the money into Bitcoin, yes it paid off but the risk was far too high, do not put everything into it and do not put money in that you do not have.
It’s A Scam
Bitcoin is a cam, cryptocurrencies are a scam, you will hear that a lot, and there is absolutely no evidence behind those claims. The majority of people that state this do not have an understanding of what it is that they are calling scams. We have to admit, that yes, there are some scams within the cryptocurrency world, but then again there are within any industry you look at, this does not, however, mean that the entire cryptocurrency scene is a scam, much the same way that not all banks are scams. Those that are telling you it is a scam will also be advising you to avoid buying it and to avoid trading it. That is terrible advice. There is no harm in trading these coins and tokens, as there are a lot that are very safe to trade. Try and avoid the smaller ones but the majority of brokers that offer any sort of trading and purchasing will be monitoring the coins they have listed and will filter out the undesirable or less than legit ones.
Sell On Drops to Avoid Losses
There are a lot of panic buyers out there, and for every panic buyer, there is also a panic seller, these are people who will see the price falling and instantly panic and sell their coins. This is the worst thing that you can do, well in most cases anyway. Instead, when it comes to cryptocurrencies there is a good example of why you should hold, only sell when you are planning to, when you buy them you should have a target amount in place, that is where you sell and withdraw. Do not sell just because the price is dropping, odds are that it will reverse and go even higher, causing you to miss out, and certainly don’t panic if the price drops after you have just made a purchase, that is an instant loss. So do not listen to those that tell you that you should be selling on the drop, there is no guarantee that it is the bottom and no guarantee that the price won’t instantly reverse.
Something that came up at the start of the whole Bitcoin and cryptocurrency boom was the term HODL, this is basically the idea of holding onto your bitcoin no matter what, with no real aim or goal as to when you will sell or withdraw back into local currencies. While there is certainly some credit to the idea of holding Bitcoin and other cryptocurrencies long term, as there is certainly profit to be had in doing that, the idea of not having any sort of end goal is not. Yes by cashing out you may lose some potential profit, but you are cashing out at a level that is right for you and so you should be happy with that, just aimlessly holding things and hoping that they continue to go up is not a good thing to do as everything that goes up will eventually come back down.
Don’t Buy It, Don’t Trade It
We put these ones in one as they are very similar, a lot of people are telling others to simply not buy into it or to not trade it, why they have decided that this is the advice that they are going to be giving we have no idea. There is absolutely no reason why you should not be buying and no reason why you should not be trading it. Many of the people giving this advice either do not fully understand how cryptocurrencies work or they simply do not like the risks that are involved. That is fine for them, but it is not a reason to advise other people away due to their own preferences. If you want to trade it, trade it, if you want to buy, then buy, do not listen to this sort of advice.
Those are a few of the things that we consider as the worst advice that you can get, there will of course be other silly things that you may hear or you may have even heard something even worse, either way, it is important that you do not take all advice on board, some of it can be ignored. After All the decisions on what you do are yours and yours alone.