Are you thinking of starting in the world of crypto trading? If so, make sure you avoid the most common mistakes. You will be better than most crypto merchants by avoiding these mistakes. Interestingly, almost every trader makes these mistakes without even realizing it. Without further ado, let’s check out these common mistakes. Read on to learn more.
1. Emotional decision making
Beginners tend to trade emotionally. But the thing is, trading has nothing to do with your emotions. In fact, if you make decisions based on your emotions, you will be heading for failure.
2. Buy high and sell low
Another common mistake that beginners make is to buy high and sell low. You don’t want to be greedy while doing this business. What you need to do is buy cheap and sell high. This is the only way to make money from bitcoin trading.
3. Sell at once
Due to the two mistakes mentioned above, beginners buy or sell their bitcoins at once, instead of buying and selling them gradually in small quantities. If you ask an experienced trader, he will ask you to sell 20% of your bitcoin after 50% profit. But the problem is that new traders are too willing to sell. Therefore, they do not have the money to buy dips. Some of them sell all their bitcoins at once.
4. Buying the wrong currencies
The new trade is buying cryptocurrencies that make tons of promises using big words. But they do not know that these currencies do not provide any technical innovations, such as Litecoin, NEO, Tron and EOS, to name a few. The problem is that they are quite centralized blockchain. So you may want to avoid them.
5. You put your eggs in too many baskets
Due to the previous mistake, beginners tend to invest in many cryptocurrencies. This is not a good idea as it can make it difficult for you to earn. Ideally, you may want to invest in 3 to 4 coins. In the world of cryptocurrency, you can’t afford to put all your eggs in tons of baskets.
6. Put all the eggs in one basket
Another common mistake is to put all your eggs in the same basket. Ideally, you should have a well-diversified portfolio. Additionally, you may not want to deposit all of your cryptocurrencies in the same wallet or exchange. What you need to do is use at least three wallets. This will help you protect your investment.
In short, these are just some of the most common mistakes that new cryptocurrency traders make. If you follow these steps, you will be less likely to make these mistakes. As a result, your investment will be safe and you are more likely to make a profit than to suffer a loss. We hope that these tips will help you start as a new trader and earn a lot.