My Biggest Crypto Mistakes (And How to Avoid Them)
7 years of crypto mistakes condensed into actionable lessons for new investors.
I've made every crypto mistake in the book. Lost money to exit scams, bought tops, sold bottoms, got liquidated, fell for pump and dumps - you name it. Here are my biggest mistakes and what I learned from each one.
1. Buying Altcoins at the Top (2018)
The Mistake:
January 2018, peak of the bull run. I threw $15K into random altcoins: Verge, Tron, Ripple, Cardano. Bought everything at or near all-time highs because "they're going to the moon."
The Result:
Lost 95% of that money. $15K became $750 by December 2018. Took me 3 years to break even.
The Lesson:
- • Never buy during euphoria phases
- • If everyone's talking about it, you're probably too late
- • DCA instead of lump sum buying
- • Focus on Bitcoin and Ethereum first
2. Not Taking Profits (2021)
The Mistake:
My portfolio went from $50K to $200K during the 2021 bull run. I was up 4x and getting greedy. "It's going to $500K," I thought. Never took a single profit.
The Result:
Watched it crash back down to $30K. Could have taken $150K in profits but ended up with less than I started with.
The Lesson:
- • Always have a profit-taking plan
- • Take 25% profits at 2x, another 25% at 3x
- • Greed is your worst enemy
- • No one ever went broke taking profits
3. Leverage Trading (2019-2020)
The Mistake:
Got into leverage trading on BitMEX. Started with 2x, then 5x, then 10x. "I can make money faster," I thought. Won a few trades and got overconfident.
The Result:
Got liquidated 7 times in 6 months. Lost about $8K total. The stress was unbearable - checking charts every 5 minutes, couldn't sleep properly.
The Lesson:
- • Leverage is a wealth destroyer for 99% of people
- • Crypto is volatile enough without leverage
- • Focus on spot trading and long-term holding
- • Your mental health is worth more than quick gains
4. Falling for Exit Scams (2017-2018)
The Mistake:
Invested in several ICOs that turned out to be scams: Confido, Centra, and a few others. They had "great teams" and "revolutionary technology." I didn't do proper research.
The Result:
Lost about $5K across multiple scam projects. Confido literally disappeared overnight - website gone, team vanished, tokens worthless.
The Lesson:
- • If it sounds too good to be true, it probably is
- • Research the team thoroughly - real names, LinkedIn profiles
- • Look for working products, not just whitepapers
- • Stick to established projects until you're experienced
5. Panic Selling (March 2020)
The Mistake:
COVID crash hit and Bitcoin dropped from $10K to $3.8K in days. I panicked and sold everything at $4.2K, thinking it was going to zero. "This time is different," I thought.
The Result:
Bitcoin recovered to $10K within 6 months, then went to $69K. I missed the entire 2020-2021 bull run because I sold at the bottom.
The Lesson:
- • Never sell during maximum fear
- • Crashes are buying opportunities, not selling opportunities
- • Have a long-term perspective (4+ years)
- • DCA during crashes instead of panic selling
6. Ignoring Security (2019)
The Mistake:
Kept all my crypto on exchanges. Used the same password for multiple accounts. Didn't have 2FA enabled everywhere. "It's easier this way," I thought.
The Result:
My Binance account got hacked. Lost $3K worth of altcoins. Luckily they didn't get my main holdings, but it was a wake-up call.
The Lesson:
- • Get a hardware wallet for long-term holdings
- • Use unique passwords and 2FA everywhere
- • Never keep large amounts on exchanges
- • Your security is your responsibility
What I Do Differently Now
My Current Strategy:
- • 70% Bitcoin and Ethereum (boring but works)
- • DCA $500/week regardless of price
- • Take 25% profits at 2x, 25% at 3x
- • Never use leverage
- • Hardware wallet for 80% of holdings
- • Only invest in projects I understand
- • 4-year minimum time horizon
- • Never invest more than I can afford to lose
⚠️ Final Thoughts
These mistakes cost me over $80K and years of stress. But they taught me valuable lessons that made me a better investor. Don't feel bad about making mistakes - just make sure you learn from them. The crypto market is unforgiving, but it rewards patience and discipline.
Remember: this isn't financial advice. These are just my personal experiences. Do your own research and never invest more than you can afford to lose.