The main mistakes of novice cryptocurrency traders

Cryptocurrency speculations are already bringing solid profit to traders, but this topic is also interesting for beginners. Even those who have never conducted transactions on Forex and have not tried to make money on courses, want to understand the intricacies.

This is not so easy, given the high volatility and other nuances. According to statistics, most newbies lose their money.

The main mistakes of cryptocurrency beginner traders are the main cause of failures. No one wants to learn, read something, watch useful videos.

Everyone wants to buy altcoins on the very first day and in a couple of hours to sell them at a higher price. Only if you first engage in development, can something be achieved in this topic.

The main mistakes of novice cryptocurrency traders

Cryptocurrency trading became much more difficult

In 2017, it was much easier to get hold of on altcoins. The market was bullish, quotes were creeping up, and some reached their maximum in December.

Since January, the trends have changed direction and a correction has begun. The same Bitcoin lost more than 50% of the cost and not the fact that he will return to previous positions.

In addition, the niche was filled with various blogs, channels, groups and other sites that give out false information.

From such an array of content it is even harder to choose something useful and determine what news will really affect the course. Plus, the "imaginary experts" who boldly hand out tips and share their predictions.

The main mistakes of novice cryptocurrency traders

This image shows the Bitcoin rate for the last year. Until December 2017, it was rapidly going up, but since 2018 the trend has been constantly changing.

It is almost impossible to predict the price of a BTC in a few months, because it can be any. While some news and indicators are talking about recovery, others point to the next drawdown.

Learning to trade and cryptocurrency trading

It has become more difficult to earn money by exchanging, buying and selling cryptocurrency, but it still remains a profitable business.

The important point is that there is nothing to do without knowledge. Newbies forget about it and on the very first day, having decided to become a trader, invest their money in some coins.

On our blog there is a section called All about cryptocurrencies. There are a lot of useful articles collected for traders, all in a simple language for beginners.

Attitude to earnings on cryptocurrencies is too simple. After numerous posts in the social. networks and forums, it seems that trading is entertainment.

Look for coins, wait for the pampas and buy altcoins. But after the next recession, the price of cryptocurrency may not rise ever.

For the long term, it is always easier to make predictions, but cryptocurrency trading requires quick decisions. We have to make plans for several days, during this time it is difficult to assess the market, the impact of the news and take into account all the signals.

Only a professional is able to competently analyze the situation and make a decision with minimal risks. Therefore, theory in the teaching of trade plays a crucial role.

The main mistakes of novice cryptocurrency traders

10 common mistakes made by a cryptocurrency trader

At the crypto market, beginners face many barriers, starting with fraud and ending with an artificial effect on the courses. One cannot get away from this, but more often, problems with cryptocurrency occur because of rash actions or negligence. In order not to complicate your own work, never make these mistakes:

  1. Use outdated approaches.

There are a lot of articles written about trading, but if the work with Forex began more than 10 years ago, the crypto market is relatively young.

Other principles work here, cryptocurrency does not depend on any state and is not supported by any material values. Moreover, in this area the highest volatility.

  1. Excessive Emotion.

A series of successful or unsuccessful transactions knocks down newbies. Blurred brain prevents competently assess the situation.

Traders go to minus when they say, "Now I’ll win back," or "I'm waiting, I need to make more deals." Each step should be thought out, and if you are angry, afraid, happy, wait a bit.

  1. High Stakes.

In order to get a solid profit from buying and selling any coins, you must close orders for large amounts.

Experienced traders are never in a hurry, because of the large losses, you can quickly stay with a zero balance. No matter how confident you are in your forecast, it is better to conduct several separate transactions.

  1. Strategy definition.

You need to choose a plan for yourself and stick to your own tactics. For example, one of my friends chooses coins by drawdown (15% -20%). It takes into account capitalization, popularity and other factors.

If a pamp is not explained, he buys altcoins and quickly sells them more expensive. Every trader should have his own method.

  1. Low security.

In the crypto world, fraudsters feel free using the blockchain's anonymity. You need to always be on the alert, steal passwords, transfer coins, lure to scam. But the main problem is the protection of its assets.

The ideal option to save any coin is to buy a hardware wallet.

  1. Use of non-quality services.

New exchanges, online wallets, various exchangers and other services appear. On them, more favorable conditions, there are additional features, bonuses.

However, it is better not to rush, because only proven resources are used with minimal risk. At a minimum, you need to work with the best cryptocurrency exchanges.

  1. Work with one asset.

Novice traders cling to one cryptocurrency and only try to get out of it. The approach is not competent, changes in this market occur constantly and sometimes new tokens soar sharply.

Firstly, it expands opportunities, and secondly, there are much more good situations for conducting a transaction.

  1. Trade bots and technical analysis.

The network is full of programs and services that, based on various indicators, publish forecasts of cryptocurrency rates.

As is the case with Forex, for which even more bots are written, this does not always work. Robots simply can not take into account all factors, only manual work and analytics allow us to make the forecast perfect.

  1. Buying at the peak.

Despite the fact that many indicators showed a fall in Bitcoin up to $ 3,000 in December 2017, some continued to buy coins of almost $ 20,000 each.

What do they have now? A huge hole in the budget. Never buy altcoins at the peak, there are too big risks that the trend will change soon.

  1. Refusal of the news.

Unlike conventional currencies and other assets, cryptocurrency is not tied to anything. Their quotes are more dependent on serious events in this area.

The interest of people in altcoins is increasing, the demand is increasing, the price is rising. News is one of the best signals in the crypto market.

Newbies who have already passed the cryptocurrency “field” have figured out where the rakes are laid out. You do not have to attack them, because you can find out where they are.

If you do not allow the common mistakes of novice traders, the probability of getting a plus from trading will be much higher.

The main mistakes of novice cryptocurrency traders

Trader's mistakes are the best learning to trade cryptocurrency

Why should I watch my own actions for me, the great trader and the best investor - Do you really think so?

A competent speculator keeps his own diary, where he indicates each transaction in order to monitor his trading activity. This is useful for making forecasts, strategies and other things.

It is impossible to always close trades plus, everyone is mistaken. But it is important to relate to their failure.

Some will simply forget and move on, while others will carefully analyze everything in order to understand where they are wrong, how to rework their trading techniques, and so on.

Studying theory, do not forget about practice. Never buy paid courses, video tutorials and other info products.

It is better to let this money to trade. Let a little, but you get a valuable experience. It is he who helps the professionals to earn more money, because the institutes do not teach currency to speculate (and even more so, cryptocurrency).

In order to make money on altcoins, it is not necessary to wait for a decrease and a further increase in prices. There is an alternative method - cryptocurrency arbitrage.

It is impossible to insure yourself against mistakes, but it is quite possible to reduce the risks and learn the subtleties in order not to stumble.

Investors and traders have been working for years to avoid inaccuracies in their work, so be prepared to spend a lot of time, both on training and on practice.

You will also be interested in:
- Profitable cryptocurrency arbitrage
- Basics of investing in cryptocurrency - errors of novice traders
- How does a trader cope with failures?


Related Articles