Common mistakes when screening for investments or trades in cryptocurrency.

First I want to state that this is purely based on observation and empirical experience.

Everyone likes to assume they are the best when it comes to giving advice; so if you see something I can improve on I will appreciate it.

I'm not trying to downplay the enthusiastic people that want to get into investing and take cryptocurrency as a good starting opportunity, what I'm trying to achieve is that everyone have a fair starting ground.

This advice applies to other more conventional forms of investing and trading.

• Fundamental Analysis

As redundant as I will sound this applies to everything, what I mean is; if you starting to look into investing you first need to understand concepts in general investing. Perhaps one of the most important being market research.

• Market Research; seasoned investors will first try to dominate a field before diversifying their portfolio unless it's an investing institution, what I mean is for example you want to invest in the solar energy field and looking for a good company, you need to understand just about everything about solar energy so you pick your best possible option. Same applies in crypto.

• Define if you want to invest or trade a crytocurrency; digging into crypto, one of the main aspects about crypto that draws old school investors it's the volatility in prices, one day your pick can be +89% and the next day you are at -50% and you want to kill yourself. As such, in my own personal recommendation is to stick to the top 10 market cap if you want to shed out some of the volatility but even then we can see how Bitcoin drops -7% overnight and everyone losses their minds. So what I been doing lately it's just trade Bitcoin, etherum and omisego (not trying to advertise i'm just not feeling adventurous) .

• Check your feelings at the door; Do you like the coin because you see it just went +50% in value over night, that is an emotional response if you follow those enough you will soon be seeking the next best possible method. What I mean is, if you really want to invest your money as in Set it and Forget it, i recommend you research just about everything you can about that coin, treat them as if they were a company (they are) this is your money.

• Don't listen to youtubers or bloggers (me included), if you really think about it most youtubers are just a pump and dump masquerade with a personality and audiovisual entretemient, I mean i understand some want to help and earn some cash but you need to be aware of this issue.

• Which leads me to pump and dumps; the current unregulated exchange state of the cryptocurrency market it's primed for pump and dump if you wish to participate be aware of the hive mentality and that there are thousands of persons trying to scalp some profit just as much as you are, also get out if you see a dump, just get out from personal experience, the price can drop -10% in a matter of seconds while you make up your mind if you want to take that -2% loss, just get out at -2% always, that is my recommendation you honestly make up that 2% in less than 1 hour trading.

• Which leads me to technical analysis, now in the conventional stock market there is a term used to call the default indicator users, dubbed the "default stochastic club" there are books written over how to outplay the default stochastics, it's a beautiful world full of charts, colors, assumptions and speculation. Now what I see on even popular cryptocurrency news sites, I see a technical analysis section and while the effort it's appreciated you can see how most use the default values on the indicators.