A Beginner’s Guide On Crypto Mistakes To Avoid.
- 1 mins
Crypto-trading is often mental warfare. You have to go against your inclinations or follow your gut. The crypto market is one of the most volatile markets in the world. For both new and experienced traders, making stupid decisions is not far off. So what are the horrible bitcoin trading mistakes you must avoid making?
Putting Eggs in One Basket.
It is one of the biggest mistakes most new investors make. If you want to play with crypto coins, it is best to consider spreading investments across multiple strategies.
Investing big on one coin could ruin your wealth and future investing plans. Portfolio diversification is a timeless strategy to reduce the risk of loss.
Buying on Speculation
This is the worst mistake many beginners make and could lead you to buy high and selling low. Many newcomers want to ride the rally and make profits without thinking about the factors driving the coin's price higher.
Making purchases due to social media hype or off the information in a prediction article you read is risky. Crypto markets are volatile, and difficult to predict future price movement.
Catching the bottom
Traders do this in an attempt to initiate a trade at the bottom of a downtrend. It is not easy to catch the exact bottom of a trend. You might as well try to catch a falling gun.
Not studying the market
This is the easiest trap to fall into, and it is a ripple effect of one or more mistakes earlier mentioned. It happens in an early sale of your assets due to the fear of losing your profits. Other times, it is buying at the maximum because of the popular gut feeling. Relying primarily on your experience is not often accurate. Moreover, it is difficult when it involves shifting moods. Boredom or the need to trade can easily cloud your judgment and cause you to trade when you should not.
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