Unearthing the pitfalls of long-term crypto investing requires more than just surface-level advice. This article distills the expertise of seasoned investors to steer clear of common mistakes. Arm yourself with knowledge and thrive in the dynamic world of cryptocurrency.
- Revising Portfolio Regularly
- Building Traction Before Seeking Investment
- Treating Crypto as Diversified Asset
- Considering Regulatory and Tax Obligations
- Rooting Strategy in Fundamentals
Revising Portfolio Regularly
One of the main mistakes in a long-term crypto investment strategy is the very idea of “long-term” in the usual sense. The crypto market does not work according to the classic laws of the stock market, where you can “buy and forget.” Even top projects lose 80-90% of their valu—remember Polygon, Avalanche, and Near, which seemed “too big to fail,” but are now in deep drawdown. At the same time, Solana was being buried, and it’s back at the top. Even among the top 3 assets, the dynamics are mixed: Bitcoin is rising, while Ethereum is at its lows since 2020. The main risk is that tokens can fall to zero, because in crypto, the bankruptcy of projects is not uncommon.
How to avoid the mistake? The main thing is not to hold assets for years without revision. At least once a quarter, you need to revise your portfolio, and even better—constantly track trends. Crypto is about information and reaction speed. And the key question an investor should ask himself is: is he ready to lose what he has invested, or does he want to take a profit (or loss)? For example, my personal case: Polygon, bought at $1.5, is now at a loss of 80%—and I have to choose between fixing the balance or hoping that it will not go to zero. The crypto market does not tolerate passive investors—those who act win here.
Dmitry Mishunin
CEO, HashEx Blockchain Security
Building Traction Before Seeking Investment
One of the most effective fundraising strategies I’ve used is building traction before seeking investment.
When raising capital for my crypto exchange, I focused first on achieving measurable results: user growth, MVP validation, and early revenue. Investors don’t just fund ideas—they fund momentum. By the time I entered conversations, we had already proven demand.
Another key strategy was positioning the company as a “picks and shovels” player in the crypto space—not just another trading platform, but infrastructure for others to build on. That narrative helped us stand out.
I also learned that strategic networking beats cold pitching. Joining communities like Forbes Tech Council, speaking at fintech events, and engaging with investors months before the actual ask helped build trust. Warm introductions and shared values made a huge difference.
Finally, I’ve found that transparency about risks—especially in crypto—earns more credibility than overselling the upside. Serious investors appreciate realism backed by vision.
Kirill Sagitov
Founder, coytx global llc.
Treating Crypto as Diversified Asset
One of the biggest mistakes I’ve seen investors make with long-term crypto strategies is treating it like a get-rich-quick scheme rather than a disciplined, diversified asset class. Too often, people go all-in on hype-driven coins without understanding the fundamentals, the technology, or the macro environment. That kind of emotional investing leads to poor timing: buying high and panicking low.
To prevent this, treat crypto as you would any other long-term investment: with research, risk management, and diversification of portfolios. Invest only what you can afford to lose, pay attention to projects that have real utility and progress, and always consider cycles, not headlines. Structure and patience will beat speculation every time.
Nathan Barz
Financial Advisor, Management Expert, Founder and CEO, DocVA
Considering Regulatory and Tax Obligations
A serious mistake in a long-term crypto investment strategy is disregarding regulatory, especially tax regulations. Many investors focus solely on market analysis and potential profits without considering the legal framework. However, cryptocurrencies are subject to specific laws on taxation, money laundering prevention, and financial market regulation in many countries. Violations—whether through ignorance or negligence—can lead to significant additional tax payments, fines, or even criminal prosecution.
Before making a long-term investment, investors should inform themselves about the tax obligations and regulatory provisions in their country of residence. A specialist lawyer for tax or financial law can provide clarity. Those who pay attention to the regulatory and tax framework from the outset will avoid costly mistakes and secure their wealth accumulation in the long term.
Nico Glöckle
Attorney, Founder of Glöckle Rechtsanwälte, Glöckle Rechtsanwälte
Rooting Strategy in Fundamentals
One mistake I’ve seen far too often—especially during bull markets—is treating long-term crypto investing like short-term trading with a longer holding period. In other words, people buy high on hype, label it a “long-term hold” to justify the entry point, and then panic sell when the market inevitably corrects. I’ve made that mistake myself early on, confusing conviction with FOMO.
What I’ve learned is that a true long-term strategy has to be rooted in fundamentals: understanding the utility of the project, the strength of the community, the team’s track record, and how the token actually accrues value. It’s less about timing the next 10x and more about aligning with projects that are solving real problems and have staying power.
To avoid this pitfall, I now treat crypto investments like venture bets—where you assume illiquidity, expect volatility, and stay focused on narratives playing out over years, not months. Setting up a simple framework helps: write down why you’re investing in a particular token or project, what would invalidate your thesis, and what your timeline is. That way, when the market dips, you’re making decisions based on your original conviction—not emotions or noise.
Crypto moves fast, but real value takes time to build. The mistake isn’t volatility—it’s not being honest about your strategy going in.
Patric Edwards
Founder & Principal Software Architect, Cirrus Bridge
