47. Top 4 Mistakes We See Crypto Investors Make Everyday

Everyone wants to get rich quick. We know, we understand, everyone's getting rich, it's okay. But trying to get rich faster than normal will make you lose money, I guarantee it. Getting rich is not an easy thing. There's no get rich quick scheme. Don't worry, I've looked into them. They're not, they're not real.

I tried them all, mate, they're no good.

It's not real. Everyone wants to do it. But by trying to push the boundaries and getting there faster, you will make mistakes. One of those mistakes is I see time and time again beginner or people that are getting into crypto, trying to get into trading. Crypto trading is not easy. 90% of crypto traders lose money. 10% of people win. Make all of the losses that those 90% of people make. And guess what? Those 10% of people are. Welcome back to Ben and Berg's, your favorite NBA and high school dropout talking everything business, personal growth and crypto. And today we have a power packed, value packed, short, sharp episode for all you crypto investors out there who are making mistakes. And I know you're out there because I talk to them every day. There are some common pitfalls crypto investors make. Whether you're a beginner, intermediate or advanced and you're just starting out. We talk to hundreds and hundreds of crypto investors weekly. We have over 6,000 members of Collective Shift where we deliver research and insights and I speak to them one on one and there's some really common pitfalls I'm going to walk through today so. So you can get the hell out of doing the wrong things and make sure your portfolio is set up for success.

Fantastic mate. I can't wait to hear these tips even though even the old hats, we need them, like you need to be reminded. And that thing, that little niggling thing that's keeping you up at night, just fix it and get good.

So this is going to be a quick power punch episode. Let's get into it. Number one, everyone wants to get rich quick. We know, we understand, everyone's get rich, it's okay. But trying to get rich faster than normal will make you lose money, I guarantee it. Getting rich is not an easy thing. There's no get rich quick scheme. Don't worry, I've looked into them. They're not, they're not real.

Tried them all, mate. They're no good.

It's not real. Everyone wants to do it. But by trying to push the boundaries and getting there faster, you will make mistakes. One of those mistakes is I see time and time again beginner or people that are getting into crypto, trying to get into trading. Crypto trading is not easy. 90% of crypto traders lose money. 10% of people win, make all of the losses that those 90% of people make. And guess what those 10% of people are people who know what the hell they're doing, that have been in this space for years, that have computers and algorithms, machine learning and a shitload of money, way more than us and you to beat you in the market. Crypto is such a nascent technology and nascent market that it is still be able to manipulated. One of the reasons why FTX was found out in the first place was because some of the markets were manipulated because people knew that they weren't doing the right thing.

They had God mode on their trades. They couldn't be liquidated.

They couldn't be liquidated. You were playing against God mode with your two thousand dollar portfolio. You will lose unless you know what you're doing.

Even your older blokes with your 100x on BitMEX, just don't do it like this. This is the thing. Think about what it takes to be a good trader. How many years they're put in, the algorithms they have, how structured they are and what you have to become as a person. You have to sit in front of a screen 12, 14 hours a day. You have to be emotionless. How is it going to flow over to your normal life? How many hours are you willing to put in? How many years are you willing to put in? It is very, very hard to become a good trader. You have to be dedicated and it takes a very long time. If you think you're going to get in and be an awesome trader straight away, you are not. You are not going to get there. I thought the same thing. I jumped into trading, I was like, oh, I could do some ta. I could do time cycles. Oh, I can pick this perfectly. No, it does not work. You will lose a lot of money.

And the risk is ruined. Right? If you're playing with all your portfolio, the risk is ruined. So number one, trying to make X percent gains on crypto trading, yes, you might have some wins, yes, you might have some growth. But the asymmetric upside of Bitcoin and Ethereum on the possibility of where it's going in the future. If you don't know where it's going in the future, listen to our episode how Bitcoin can increase from 20,000 to 1.4 million by 2030 is next to Impossible to make that money in trading in the short term versus just holding for the long term. 90% of people that invest for the long term and hold and accumulate assets will make more money than those people that trade. Right. Because you're trying to trade money and you're trying to. So you're trying to trade crypto and make too much money in the short term. Crypto is volatile and if you're trading on small portfolios, you're playing against bigger guys. There's two people to the screen, there's a winner and a loser. And if you're playing with, playing with small capital.

You have a very high chance of losing, unfortunately. Right. It's not to say you can't be a trader, but I'm saying to those beginners and those people are starting out in crypto, start with investing. Start by understanding the assets. Start by getting time in the market before looking at trading.

Definitely. And if you're going down the trading path, you'll need to learn a lot. It'll take quite a long time and be prepared for if you want to be successful. That is what it's going to take. No matter what anyone tells you. It is not a fast path.

Yes. Next one. The next mistake I see people make is they have too many altcoins in their portfolio. You hear influencers and friends and all these sorts of people talking about the next 100x, the next Ethereum killer. This thing's going to the moon. Guess what? 90% of it's all a load of BS. We have moved away from a world of having all these altcoins pump and go to the moon. Most altcoins are down 90%. You know, January, yes, we've had some improvements. You know, some of the altcoins are up 50%, 100%, but they're up 100% off being down 95%, which means they're now only down 93%. So just be careful with that. Zoom out. And a lot of these altcoins have value because of hope and sentiment and fomo, not fundamental economic value. Now, not to say there isn't good altcoins, but a lot of them are not valuable. So please look at your portfolio, maybe look to condense them. Find your favorite ones. And if you. A rule I like to use, if you can't be across every single cryptocurrency in your portfolio, if you can't explain to me what that cryptocurrency does and what their roadmap is, then you've got too many in your portfolio.

That's a good rule, man. And even just looking at us like we were buying 100, 150 ETH, and I would have lost 90, 95% of it from spending it in ICOs. What are those ICOs worth today? Zero. What would that eighth be worth, mate? Probably a boat or something like that. Like that is the reality. And every time I buy something that's not BTC or eth, I look at it and I'm like, what is the cost of this in btc? And Ethan, would I rather hold that long term or have this? And what am I actually trading off? What is the opportunity cost here?

Yeah, and it has to be a.

Bloody good reason for me to buy that thing 100%.

Now, the third and last final point I'll make is that a lot of investors we see are not holding for the long term. You're investing too short and you're trading those old coins or the Bitcoin ethereum too short. You're not patient enough. You need to hold for long term. You need to dollar cost average, build your portfolio. I've been holding my crypto for now six years, right? You accumulate over time. Now I'm well into the green. You're not going to make a shitload of money in the first year, right? But over time, as you're involved in the cycles and you're involved in the bull market, that capital will increase the more you trade and the more you, you know, moving on your old coins. Especially if you have a lower portfolio size. The only person that's making money is the exchange. I had a question the other day of like, why does the exchange have one price to buy and one price to sell? It's because the exchange makes a moza definition of a matzah, a shitload of money on you. Trading and buying and selling coins, because they make money on the spread, they will buy your coins off you. You sell your coins to the exchange for a lower price than what it's actually worth, and then they're going to take your coins and they'll sell it on another exchange and make money for them. That's what's going on every time you trade an Altcoin. So please hold for the long term. When you make your trades, make sure they are things you want to make and know that every time you make a trade, you're losing money on fees and the spread.

Absolutely. And another point I'll make is know your points of risk. So if you're, if you do want to go into trading and you've got your entire stack on one exchange because that's where you trade. Know that it's a point of risk. Just look at what happened with FTX and understand that risk. Or if you hold all of your crypto on an exchange and you want to sleep well at night, maybe look at putting that in another custody service, one you can insure or self custodying, know those different risk points because you're spending a lot of time and effort to invest. This is money that you've earned, you're investing it. You want to keep that as secure as you possibly can.

Yes. Get it off an exchange order onto a wallet. And if you need help doing that, you can book a one on one complimentary free crypto strategy call with one of our team where we can walk you through your portfolio, look at where, where you're at, give you the latest crypto insights on what we're seeing from our team of six analysts. And we can also do a security review of where you're currently at to make sure that your assets are secure. Because like we saw last year, bugs, you know, FTX went out overnight. And if you have money on exchange, it is not safe, you can lose that money. That money is not yours, it's not insured, it's not like a bank. So you need to be careful. So you can book one of those calls with us, completely complimentary. We'll help you out in the link below. Or head to Collective Shift IO, go to the member tab and you can book one of those in.

Just jump on a call, get good. If you got that niggling little thing or you want a bit of info, jump on the call, get some understanding around it and implement a good strategy and sleep well at night.

Now, if you have a friend that needs to hear this and you know they're doing the wrong thing, everyone's got one, mate. Tell them Benneberg sent them. Send this episode to them. Say, get your shit sorted, upgrade your portfolio and stop losing money. Thank you very much for listening, everyone. We'll be back on our next episode. If you like these episodes, please leave us a review. Send it to a friend. We know you've got that newbie friend that's losing money. Send this to them. We'll see you next time.

See you. Championship.