Trading is a kind of activity to get profits from the trading process. It is needed to develop specific qualities for achieving high competence as in any other kind of trading.
Many enter in the crypto-exchange with hoping to earn quickly with minimal effort. However, you may be disappointed soon in this kind of activity. Here we introduce top mistakes you must avoid,
- Unwillingness to study the market and situation on your own
If you do not understand the coin and its value, but only listen to “experts” from blogs, forums, social media, you will get into big trouble and lose your money.
If you decide to buy a currency depending on the opinion of someone else, you will have to rely on the opinion and when selling. Do not be a layman and explore the market which you work.
- Putting the money that you can not afford
Not every single person is insured against failures and mistakes. Even professional and experienced traders often bear significant financial losses.
Mistakes must be made since learning from their mistakes is effective than on others. It is a characteristic feature of acquiring practical knowledge. The best thing you can do before starting trading is to minimize the consequences of initial problems in advance. The rest will come with the time.
- Sales at peak prices
Well, you may not know how much a particular token will grow.
For example, if you bought bitcoin for $300, you probably experienced an incredible desire to sell it when it jumped to $3,000. But today you have regretted it a lot.
To sell cryptocurrency, you need a strategy and rule. Set a goal and strive for it no matter what. It will be incredibly difficult to look at how money flows with the fall of the market. But, is it worth to be panic and sell everything at once? The answer is “No.”
- Buying cheap coins
It is clear how the currency will develop before investing funds. If this is not a risky investment, then it is needed to calculate what the result will be from the investment. A coin can develop, however, it can be a fraud.
You can not invest money in the currency for the reason of cheap price. Many traders are used to think that most of the altcoins with a small price are merely underestimated since there are already many stories of sudden growth in value. But this is not all of the cryptocurrencies are profitable.
This is one of the most serious mistakes in the crypto-community today. Hundreds of millions of dollars were lost during people entrusted all their data to an exchange, which was hacked or stopped working.
With the grow of technology development, hackers and scammers do not stand without sufficient control. Even if you do not have much money now, and even if you do not plan to trade for a long time, you should approach the security of your data carefully. Two-factor authentication, data encryption and use of individual computers are mandatory.
It is needed to write down all your secret keys, passwords, print them and hide in a safe place. Thus, you can restore everything to other device if something happens to your device.
Patience is the key to trading and investing cryptocurrency. Remember that it is not difficult to make money on the market, but it is hard to keep what you have earned. Do not let greed and get over yourself.