Things To Avoid When Trading Cryptocurrencies
Most people have lost their entire funds because of little mistakes that they made while trading. For all first-time crypto traders, it is important that they take to heart these mistakes and try as much as possible not to repeat them.
Image Source : https://pixabay.com
Some of these mistakes include:
Not Being Informed About The Crypto Market
Little things like bans, country complaints can most times affect the value of cryptocurrencies. Price volatility is one feature of cryptocurrencies, so it is important that you always check and follow the crypto news. Being Informed is important and you should endeavor to follow crypto news that is related to exchange hacks and regulations and bans made by countries. If as a crypto trader you are not informed, you may not know why your desired token or coin drops in value and also if the drop will continue.
Storing Your Coin in a Less Secure Wallet
The secure storing of coins cannot be emphasized. All users both first-timers and professionals will have to select a good and secure wallet if they do not want to lose their tokens. Hardware wallets like Trezor and Nano S Ledger have proven to be the most secure wallets out there.
Paper wallets have also be recommended because they support more digital tokens and it is important that you store both the hardware and paper wallet in a safe place in your home.
Investing Without an Investment Plan
One mistake most first timers make is that they do rush into cryptocurrency trading without having a clear plan as to how to make profit. Each crypto investor must have a plan; how much crypto should I invest? Will I invest a huge sum at once or little by little? These questions must be answered before you decide to invest in cryptocurrencies.
You also need to know the ROI rate of each crypto you decide to invest in.
Being Emotionally Attached to a Particular Coin
One thing every investor must remember is that no coin or token will continue to rise without fall. Even Bitcoin has its own good and bad days. If you are in possession of a coin because you believe in it, it's a good thing but when you are investing, it is wise not to have any emotional attachment to it.
For example, Bitcoin dropped from $19,000 as at November 2017 to about $6,700 as at April 2018. If this is the case with your chosen coin, it is smart that you trade them. But if there is a surge in the value of your crypto, then it is wise that you either double or triple investment so as to make more profits.
Cheap Is Not Always the Option
One common myth most people have believed is that the cheaper the crypto, the more profit that could be made. As an investor, you have to carefully research on why a particular coin is cheap and if any development or announcement will boost its value in the future.
some say you must lose 10 K before you start to profit as a profeshinal trader.
Weak hands are the worst i was part of that group who saw the january feb dip and sold everything with huge lost then i joined steemit and start reading posts like yours and got the confidence to go back in and now hodling everything and hope that crypto currency prevail and rise to its true potential thank you again .
Good article. A plan and discipline to follow it are definitely key
Information is very important in crypto trading that's right! Not many give importance to this but it's the crucial thing. We need to know what's going on with crypto world and what's new to make sure we choose the right coin to invest and trade.
Very good info thanks for sharing!
To listen to the audio version of this article click on the play image.
Brought to you by @tts. If you find it useful please consider upvote this reply.
The being emotionally attached tip is such a vital one you really need to desenstise yourself and look at the facts if you don’t you can quickly land yourself into a bad trade! I learned that one the hard way
Good Information
Thank you for sharing.
I agree with your first point. Many people go into crypto without taking out time to study what the market is all about. Crypto is volatile, one should study it properly before investing in it.
This one was helpful for me!
Why am I Losing Money in Cryptocurrency Trades?
https://www.tokens24.com/cryptopedia/basics/reasons-why-losing-money-cryptocurrency-trades