Cryptocurrency market is volatile no doubt but you may earn well if your trading is done in a meticulous way adhering to some rule of thumbs. Although there is no fixed formula of crypto trading, your trading scheme has to be mistake proof as much as possible.
Cryptocurrency market should be analyzed properly so that you can decide your next trading strategy according to the market trend. Knowing the common mistakes in advance will help you to full proof your crypto dealing plan and executed action in the proper direction.
Mistake 1: Your Trading Is Based on FOMO and FUD
Cryptocurrency trading should be based on a logical guess, by any means, and strictly not on emotion. On the other hand, FUD (fear, uncertainty, and Doubt) and FOMO (fear of missing out) are the two factors that often govern a crypto trader’s market strategy.
For instance, if you invest largely on a cryptocurrency, it has to be done based on market indicators and basic trading rules, especially you should not be influenced by news, rumours, predictions, and trending opinions spreading in forums. You should not trade because you are watching price hike as well as for the fear missing out a profitable crypto deal.
Instead, you must trade by adhering to rules, which are result driven and will keep you away from FOMO and FUD, believing on rumour is one of the biggest mistakes of crypto traders.
Mistake 2: Investing More Than Your Breakeven Point
Every trader has a budget for crypto trading, and it has to be within the limit. You must not stake your social or financial stability in order to invest in the crypto market.
Digital cryptocurrency market is completely volatile and that is why you cannot be completely sure that your investment will surely yield high profits.
To cut the long story short, you should never invest in crypto trading out of your financial limit so that you cannot digest the loss if any.
Investment in the crypto market with your optimum financial strength is another fatal trading mistake often traders commit.
Mistake 3: Assuming That Profit Will Be a Recurring Gain
Steadiness and crypto market are two opposite terms and hardly can be integrated. Suppose your trading transactions are yielding profits for you, but you must have that mindset that it is not a recurring condition.
Instead of counting your weekly/monthly profit from crypto-market, you should count your crypto trading profit yearly. Adding bigger timeframe will be easier for you to scale your profitability.
Expecting recurring profit from crypto trading is one of the biggest mistakes done by crypto traders. You must not assume that the profit from the crypto market will be at a regular course and when it will not be the same, you must not get disappointed. Assuming crypto market as a consistent profit-making platform is mistake trader often commit.
Mistake 4: Giving up After the First Failure
Failures can be intimidating. So is about failures in Crypto-trading. But if you maintain a meticulous strategy and a conservative investment portfolio in the crypto market, you can easily revive the loss.
At least the failure will not make you financially bankrupt. You must continue your crypto trading adhering to the basic precautions. One thing is sure: you need to learn the market analysis and failure analysis. Perseverance and logical determination will help you to recover the pitfall.
Giving up after the initial failure in the crypto market is one of the commonest mistakes crypto traders do and that spoils the entire potential of making a profit in the future.
Mistake 5: Better Not to Trade with Hit Crypto Coins
Trading with major cryptocurrencies is one of the common mistakes of crypto traders. It is a global fact that professional traders never chase prime cryptocurrencies. Rather crypto tokens with small capital capitalization should be your better target. To follow the common investment trend in the crypto market is a great mistake and you should never indulge it, no matter how rosy the picture seems to you.
Your crypto investment should be a logical guess supported by market indicators, related crypto network, the involved team, etc. Also, you should learn the ways to understand and differentiate between potential crypto tokens and scams. Only by studying the market and staying updated about the latest development of the crypto market, you can stay ahead of the curve.
These are 5 common mistakes most of the beginner crypto traders fail to avoid. If you are interested in investing in the cryptocurrency market and wanted to taste triumph of success, it is always wise to learn about the common failures so that you can stay away from the common pitfalls. Once you will learn the common mistakes, you can expect steady trading and some success at least.
Remember that trading crypto is also a job. It is not a magical machine in which you put one dollar and receive hundred. But with a proper attitude, some research and true interest in trading you can achieve success that you have never dreamt about.
- A Beginner’s Guide for Cryptocurrency Trading: How to Book Profit
- Trading Guide: All About Trading Article