Are you thinking of getting started in the world of crypto trading? If so, make sure you avoid the most shared mistakes. You will be better than most of crypto traders by avoiding these mistakes. The interesting thing is that almost every trader makes these mistakes without already realizing it. Without further ado, let’s check out those shared mistakes. Read on to find out more.
1. Emotional decision making
Beginners tend to trade emotionally. But the thing is that trading has nothing to do with your emotions. As a matter of fact, if you make decisions based on your emotions, you will be heading on the road failure.
2. Buying high and selling low
Another shared mistake that beginners make is buying high and selling low. You don’t want to get greedy while doing this business. What you need to do is buy low and sell high. This is the only way to make a profit trading Bitcoin.
3. Selling at once
Due to the two mistakes mentioned above, beginners buy or sell their Bitcoins at once instead of buy and sell them little by little in small quantities. If you ask an experienced trader, they will ask you to sell 20% of your Bitcoin post 50% profit. But the problem is that new traders are too gready to sell. consequently, they don’t have the money to buy dips. Some of them sell all of their Bitcoins at once.
4. Buying wrong currencies
New commerce buy cryptocurrencies that make tons of promises using big words. But they don’t know that these currencies don’t provide any technical innovations, such as Litecoin, NEO, Tron and EOS, to name a few. The problem is that they are quite centralized blockchains. consequently you may want to avoid them.
5. Putting your eggs in too many baskets
Because of the past mistake, beginners tend to invest in a lot of cryptocurrencies. This is not a good idea as it can make it difficult for you to earn profits. Ideally, you may want to invest in 3 to 4 coins. In the world of cryptocurrency, you cannot provide to put all your eggs in tons of baskets.
6. Putting all eggs in one basket
Another shared mistake is to put all your eggs in the same basket. Ideally, you must have a well-diversified portfolio. except this, you may not want to place all your cryptocurrencies in the same wallet or exchange. What you need to do is make use of a minimum of three wallets. This will help you protect your investment.
Long story short, these are just some of the most shared mistakes new cryptocurrency traders make. If you follow these steps, you will be less likely to make these mistakes. As a consequence, your investment will be safe and you will be more likely to make a profit instead of suffer a loss. Hopefully, these tips will help you get started as a new trader and make a lot of profit.