• Use hardware wallets for crypto security; avoid leaving assets vulnerable on exchanges or hot wallets.
  • Conduct personal research and focus on high-conviction investments to grow as a self-reliant crypto investor.

Lark Davis, a well-known crypto influencer, explored in a recent video titled “9 Things to Stop Doing in Crypto Now [Beginner Tips]” talk about important pitfalls both new and experienced investors should avoid in the erratic environment of crypto.

Based on his own experiences since joining the crypto space in 2017, Davis freely offered ideas meant to guide viewers over this convoluted and sometimes demanding sector.

Prioritizing Security and Independent Research 

Davis pointed out that among the most basic errors people make is ignoring security. He underlined the need for utilizing a hardware wallet and compared leaving cryptocurrency on hot wallets or exchanges to leaving a sports car open on a crowded street.

Although handy, exchanges are not impervious to mistakes or hacking. Emphasizing the well-known slogan “Not your keys, not your coins,” Davis reminded audiences of the ongoing history of exchange failures and exhorted them to own their digital assets.

Another major mistake he covered is mindlessly copying influencers without doing personal investigation. Although many of the influencers—including Davis—offer insightful analysis, he underlined that not every coin mentioned in movies is included in their own collections.

This emphasizes, he said, the significance of investors creating their own market theses and convictions. Not only can blindly copying coins stop development as an investor, but it can also cause hasty judgments in declining markets.

Streamlining Investments and Avoiding Reckless Speculation 

Still another typical problem is overdiversification. Davis cautioned against keeping too many altcoins since they can cause poor portfolio management and lack of focus. Rather, he counseled focusing on a few high-conviction investments fit for particular market theses, such as artificial intelligence, gaming, or real-world asset tokens.

The influencer also spoke on the appeal of meme coins and the risks of the “spray and pray” strategy. Although little, deliberate meme coin purchases can occasionally pay off, he advised against too much speculating without careful study. Usually faster than investors’ capacity to evaluate their potential, meme coin offerings cause constant losses.

Overcoming FOMO and Emotional Crypto Trading 

Another important theme was FOMO (fear of missing out). Davis advised viewers to avoid rash coin purchases during rapid increases since such choices usually lead to purchasing at inflated rates. Rather than following flimsy trends, he advised patience and careful study of market conditions, waiting for better possibilities.

In talking about trading techniques, Davis brought up the dangers of emotional trading—especially vengeance trading following a loss. Instead of rushing into transactions motivated by irritation or desperation, he suggested back-off, error analysis, and waiting for ideal configurations.

He also underlined the need for patience since effective trades usually follow major macroeconomic trends or chart patterns.

Davis noted a classic error: buying high and selling low, which he explained away as emotional responses of investors.

Like learning to ride a reverse-steering bicycle—difficult at first but attainable with practice—he urged viewers to counter-trade their emotions. Rewiring their impulses will help investors learn to sell during exuberant times and buy in scared markets.

At last, Davis underlined the need for earning profits. He bemoaned the fact that many investment seminars ignore the equally important ability of selling in favor of buying techniques. Even partially taking profits guarantees returns and gives cash to reinvest during market declines.

Davis underlined that although missed possibilities are unavoidable, the freedom and security obtained by profit-taking exceed the dangers of long-term ownership.