Hi guys it's mark, so the biggest transfer of wealth in history is about to happen. Thousands of millennials and gen seas are set to become crypto millionaires, and if you understand the mistakes to avoid, then you have a much better chance of being one of them. Now i understand that's a big statement to make, but let me explain: we've seen many wealth transfers like this before each one more significant than the last first. It was the discovery of gold.

Then the real estate, craze caused by colonisation, followed by the industrial revolution and the stock market boom. I remember them all like it was yesterday, but seriously. The next transfer of wealth is about to happen and it'll be the digitization of our currencies, otherwise known as crypto currencies, but this doesn't mean that everyone will end up becoming millionaires, as there are many mistakes that could cause people to lose everything. So today, let's discuss 7.5 of the most dangerous cryptocurrency, investing mistakes to make and how you can avoid them so that you can make the most from this amazing opportunity.

If you're excited about the possibilities, then smash that like button for the ltube eugerivam, because it helps push this video to more people that need to hear about these mistakes before it's too late mistake number one is believe in false promises. Here's a little warning for you! Wherever there is significant money to be made, there are people trying to scam you, you may think only gullible people fall for crypto scams. So let's play a little game and see if you're right can you tell which one of these headlines i've made up and which one is real, shiba inu trader made 15 million dollars in a year from just 17 in crypto boom or 12 year. Old boy makes 290 000 pounds from well nfts, believe it or not, they're both real.

So my point is: if both of these headlines can actually be true, then imagine how hard it is for the everyday person to avoid the scams. Cryptocurrencies are still such a new thing and while the industry is growing at a rapid rate, there's still a huge amount of people that aren't very familiar with crypto and unfortunately, those are the people that will get hurt. This is because, when large returns aren't uncommon, it becomes extremely hard to tell the difference between real opportunities and fake ones. It's become very well known that bitcoin is the best performing asset of the last decade.

However, that doesn't mean every crypto is a smart investment. Actually, some are far from it because crypto is such a new thing. It means the market isn't regulated like with stocks and shares. This means that anyone can actually create a crypto coin, get people to invest by claiming it's the next big thing, only to sell all their coins and run off with millions of dollars, and this is commonly referred to as a rug, pull a youtuber called beer.

Hezer. Recently proved this: by creating a crypto named fluffy coin, he showcases how simple it is to make a meme coin and use social media to pump up the price into the millions now. Luckily, beer hazel was only doing this as an example and didn't sell any of his coins, but it does show how easy it is for scammers to get a hold of your money. That's not to say you can't make some cash investing in pump and dumps, but if you take fluffy coin as an example, if you didn't sell on december, the third, you would have probably lost most of your money but mark if these scams are so hard to Spot, how can i avoid them? Well, there are a few simple things you can do to avoid.

The majority of rug pulls, firstly, make sure to check the coin social media. It's really easy for these scammers to buy fake followers to make the coin look more popular than it is a great way to check if they're real is to use a website called social blade. If the follower number spikes randomly, then it's pretty obvious that there's something fishy going on. Secondly, every crypto project has something called a white paper.

This is where the coin creators outline their mission for the project. After reading a few of these, you can usually tell pretty quickly if the project is legitimate or not. Thirdly, if you're not sure about crypto investing, then just stick to bitcoin and ethereum, as these are now commonly referred to as blue chip coins, meaning they're a much safer bet mistake, number two is investing more than you can afford to lose. Crypto's upside potential is absolutely huge and therefore the temptation to yolo as much of your money in as possible can be very strong.

I mean all you have to do. Is a simple google search to find hundreds of people that have made millions and change their entire lives by taking big risks investing in crypto. So it's no surprise at all that people are investing a lot more than they can afford to lose, with the hopes that it will transform their lives and they will become the next success story reported online. What people don't consider, though, is all the stories of the people who lost their money, their house literally everything from crypto trading, it's extremely volatile and definitely not for the faint-hearted.

I always try and remember for every success story. There are countless numbers of forgotten people that haven't been so lucky. However, there is a fine line between buying more than you can afford to lose and buying nothing at all, because if you're not investing you're, most likely losing out on potential gains, i believe it's all about finding a healthy balance, especially if you're investing in riskier projects. Typically, the higher the risk, the higher the reward, so you don't actually need to part every last penny you have into a random coin to get your one-way ticket to the moon.

If i invest in altcoins, then i buy small amounts, as i know that if the project goes to the moon, then i'll make a nice profit. But if it goes to zero, then i won't be too worried. It's all about finding that sweet spot between risk and reward mistake. Number three is buying high and selling low.

This may sound extremely obvious and simple, but so many people are unknowingly, making this mistake and losing an absolute fortune in the process. It's very common in the crypto world to see huge ball runs driving the price of a crypto, far higher than the average yearly stock market returns in just a single day, and, while that's amazing, imagine fomoing into a coin when it's right at the top. Only for it to drop the next day and you have no choice but to sell as you need money for your rent or groceries. The way i avoid this mistake is by following the same formula that i've used my entire investing life, and let me tell you: i've made a lot of money, doing it and that's quite simply, buying holding long term and then buying more when the price dips.

This is known as dollar cost averaging, essentially i'll buy bitcoin in ethereum, no matter what the market is doing, sometimes i'll get a good bargain and other times it will be expensive. However, the idea is that it will average out to a pretty good deal, because you know me: i love a good deal. I also never invest money. I know that i might need in the next five years as that's just a recipe for disaster, especially in a volatile crypto world, by the way, coinbase is currently giving away 10 worth of free bitcoin.

So if you want to pick that up i'll leave, the link in the description below mistake, number four is being fooled by cheap prices. When i tell people i invest in bitcoin, one of the most common things they say to me is that it's too expensive for them. One person even laughed at me and said that one coin costs more than their yearly wage. This is probably why many people prefer to invest in cheaper coins.

Like doge you're, probably wondering why i keep doing this, it's because on the surface they might look cheaper. However, when you start digging into the details, it starts to fall apart. I'm talking about taking market cap and total supply into consideration. Let's compare bitcoin and dogecoin.

For example, bitcoin currently has a market cap of nearly 900 billion dollars and a total supply of nearly 19 million bitcoins. Whereas doge has a market cap of just over 23 billion dollars and a total supply of just over 132 billion coins, so, as you can see, dogecoin is worth far far less than bitcoin, but has far far more coins. That's why the price is lower, so just because a coin appears cheap, it doesn't necessarily mean it's going to be a good investment. Doge will never be the same price as bitcoin, due to the extremely large total supply, which is being increased by 5 billion every year, whereas bitcoin is capped at 21 million coins.

It's also important to remember that you can buy fractions of a coin and still benefit from their growth, so the price of one bitcoin is irrelevant at the end of the day. The best solution to this mistake is not to buy coins based on their surface cost. It's so important to take into account the total supply, as well as the market cap, in order to get a realistic gauge of the price and where it could be heading mistake, number five is investing only in crypto, although i believe crypto is a huge opportunity. Just imagine we wake up tomorrow and the market has hit rock bottom.

If you had only invested in crypto, then you would probably be losing your mind even though i'm pretty sure something like this is highly unlikely, especially with bitcoin and ethereum. I would still never invest in just one asset class. The easiest additional investments to consider are index funds and individual stocks, but for some people, real estate could be an option for others. Like my son, you might choose an alternative investment such as a rolex.

I have to say i'm also partial, to the old classic car investment myself broom broom. The goal here is to decrease your risk. Crypto currencies are known to be a volatile asset class, so diversifying your portfolio may allow you to make money if crypto is heading into a correction. If you want to kickstart your stock portfolio, then public.com are currently giving away a free stock worth all the way up to a thousand dollars when you sign up and invest just one dollar on the platform, i'll leave the link in the description below.

If you want to check that out mistake number six is using leverage. If you aren't careful, then you can actually lose far more than you invest. By doing this, just imagine only investing a thousand dollars of your own money, but waking up and being seven thousand dollars in debt. Well, that's what you call a bad morning.

This kind of situation happens when you use leverage without fully understanding the consequences. Many crypto brokers allow you to trade on margin, which simply means you're able to multiply your money. Some people are doing this by 100x with bitcoin. When you do this, you maximize your profits as you're investing more, but you also increase your risk as if the investment doesn't go well, then you may be margin called and forced to sell all your crypto at a loss, although using leverage is really tempting.

I always stay away from it personally, i know a lot of people would disagree with me here. However, i'm a long-term investor and can't be sure what the price of some cryptos will be in the next day. Therefore, i'm more interested in the next 10 years. That's, of course, if i'm around that long because of this, i don't feel like using margin as a smart move, even though i could afford to pay things back if it all went south.

If you still decide you want to use leverage, then i would just suggest making sure you fully understand the risk involved before you dive in mistake. Number seven is not storing your coins correctly. Since 2011, over 1.65 billion dollars worth of crypto has been stolen and the numbers are growing every year. That amounts to a jaw-dropping 12.6 billion dollar loss when values are adjusted for inflation.

The nature of crypto makes it extremely vulnerable to hackers and if you don't store it in a safe place, once your coins are stolen, there is no way to recover them. You see the stories all the time of people trying to find their lost bitcoin. It's just not going to happen, not your keys, not your crypto. Most people buy their crypto on an exchange like coinbase and keep it there and that's the issue.

It's been said that it's much more profitable to hack a crypto exchange than a bank vault these days. Therefore, it's understandable why exchanges are often targeted by highly complex cyber attacks. Exchanges lose a staggering daily average of 2.7 million dollars and this figure is set to increase in the future mark. This sounds so scary.

I don't know what to do to fight a cyber attack. Well, you need your own wallet and there are two different types. The first is called a hot wallet. These are connected to the internet and could be susceptible to online attacks, which could lead to stolen funds, but it does have benefits such as being faster and making it easier to trade or spend crypto.

The second is a cold wallet, which is how i currently store the majority of my crypto. This is typically not connected to the internet, so while it may be more secure, it's less convenient. I personally use the ledger nano x. I also keep some of my crypto in block fires.

I find it's a good compromise between the two, as they keep the majority of their funds in gemini's, cold storage, and by putting your crypto in block fight, you can earn up to nine percent interest i'll leave. A link down below where you can get up to 250 dollars of free bitcoin when you sign up bonus mistake, number 7.5 is sending your money to the wrong wallet. Sending crypto between your wallets is a pretty scary process. I once sent over a hundred thousand dollars worth of bitcoin, and i thought i'd made a mistake when typing out the wallet address, the old eyes aren't as good these days.

All it takes is for one character to be typed wrong and that 100k would have been lost forever. Luckily, 10, stressful minutes later my bitcoin arrived in my other wallet, nice and safely. To avoid this ever happening again, i now always transfer a small amount of crypto. First, to check the characters are correct and copy and paste the address or use the qr code option to avoid human error cryptocurrencies quickly becoming adopted by people corporations and now even countries with el salvador leading the way we have little choice but to embrace it or Become extinct like the dinosaurs, i truly believe that this is an extremely exciting time to be alive, as by avoiding these common mistakes, you'll be able to take advantage of the next big wealth transfer.

So if you're living in this day and age, you will never be able to say you didn't, have the chance to become wealthy. Just imagine explaining to your kids how you knew about crypto and didn't take action or rushed in and made silly mistakes. I'm going to leave the next video right up there, but don't click on it just yet make sure to subscribe. If you want to grow your wealth and don't forget to pick up your free stocks and bitcoin with the links below okay i'll see you over there.