📘 Crypto Basics Course
Step 7 of 9
In this step, you’ll learn the most common crypto mistakes beginners make — and how to avoid the ones that cost people money, sleep, and confidence.
⬅️ Previous: Step 6 – How to Store Cryptocurrency Safely
➡️ Next: Step 8 – How to Buy Your First Crypto Safely
⚠️ What You’ll Learn in This Step
- Smart rules to follow before buying anything
- Why beginners lose money unnecessarily
- Common habits that lead to bad decisions
- How to slow down and protect yourself
If you’re new to crypto, you’re not alone — and you’re definitely not dumb if things feel confusing.
Most people don’t lose money in crypto because crypto is “bad.”
They lose money because they make avoidable beginner mistakes.
Let’s break down the Top 5 crypto mistakes beginners make — in simple English — and how you can avoid them.
🚨 Mistake #1: Buying Without Understanding What You’re Buying
Many beginners buy crypto because:
- A friend told them
- Social media hyped it
- The price was “going up”
The problem:
If you don’t know what a coin does, you’ll panic-sell the moment the price drops.
How to avoid it:
- Understand the purpose of the coin
- Ask: What problem does this solve?
- Start with major projects (Bitcoin, Ethereum) before chasing hype
👉 If you can’t explain it simply, don’t buy it yet.
🚨 Mistake #2: Leaving All Crypto on an Exchange
Exchanges are great for buying and trading, but they are not banks.
When your crypto stays on an exchange:
- You don’t fully control it
- Hacks, freezes, or shutdowns can lock you out
How to avoid it:
- Use exchanges to buy
- Use wallets to store long-term crypto
- Remember: Not your keys, not your crypto
🚨 Mistake #3: FOMO Buying at the Top
FOMO = Fear Of Missing Out
This usually looks like:
- Buying after a big pump
- Buying because “everyone is talking about it”
The problem:
You end up buying high and selling low.
How to avoid it:
- Be patient
- Zoom out on the chart
- Understand that crypto moves in cycles
👉 There will ALWAYS be another opportunity.
🚨 Mistake #4: Ignoring Security Basics
This is one of the most dangerous mistakes.
Common security failures:
- Weak passwords
- No 2FA
- Clicking fake links
- Sharing seed phrases
How to avoid it:
- Enable 2-factor authentication
- Never share your recovery phrase
- Bookmark official sites
- Assume DMs are scams
🛑 No legit crypto company will ever ask for your keys.
🚨 Mistake #5: Trying to Get Rich Overnight
Crypto is powerful — but it’s not magic.
Beginners often:
- Overtrade
- Use leverage too early
- Risk money they can’t afford to lose
How to avoid it:
- Think long-term
- Start small
- Focus on learning before earning
👉 The goal is survival first, profits second.
✅ Final Takeaway
Every experienced crypto investor has made at least one of these mistakes.
The difference between winners and losers is simple:
- Winners learn
- Losers repeat mistakes
By avoiding these 5 beginner mistakes, you’re already ahead of most people entering crypto.
🔜 Next Step in Your Learning Path
👉 Step 8 – How to Buy Your First Crypto Safely
(We’ll cover where to buy, how much to start with, and what to avoid.)