Introduction
Crypto trading is becoming a crazed world over. There are all sorts of people investing their money in the hope to make a fortune. Yet all of them seem to make the same sorts of mistakes while beginning their journey. In this article, we discuss the 7 most common mistakes that beginners in crypto trading make. Though these mistakes can be avoided if you find help like crypto trading signals providers, who are professional traders with years of experience.
7 Mistakes Beginners Usually Make
Choosing A Sub-Optimal Crypto Exchange
You need to choose a crypto exchange that can help you make better trades. Things to look out for include platform simplicity, educational fx website & informational content available, community around it, Reliable customer support, Platform Authenticity, Fees and Plans, Security & other additional features. These things don’t sound like a major turnoff to beginners but once the trades start, a wrong choice of a crypto exchange is going to make your life so much harder.
Investing Only Because It’s Cheap
When looking to invest on a tight budget, it’s natural to look for something affordable but cheap & affordable are two different things. Instead of buying a crypto asset just because you can check out its fundamentals like the project goals, future roadmap, past performance, the team working on it, its market cap, and the community using it.
Not Automating Trades
Automation doesn’t necessarily mean trading bots. Crypto exchanges support stop loss and sell target automation to set you up for making profits while avoiding any huge losses. Beginners often pass on setting stop losses while trading and it comes to bite them later on.
Not Having A Trading Journal
It’s an industry best practice to have a trading journal, not only to keep records of the trades you made but to also log the reasons for the same. This informs you in your later trades regarding what sort of trades have turned beneficial for you.
Revenge Trading
One thing that a seasoned trader knows and a beginner doesn’t is that losses are inevitable in crypto trading. If you keep lingering on a loss you made and trying to trade even riskier trades to make up for it, you are in for a surprise. The loop is just going to take you down as you lose more when taking risks relentlessly. Pro Tip: Do Not Revenge Trade!!!
Acting on your FOMO
Fear of missing out is not only the reason that people make bad trades, it even is one of the primary reasons that people start crypto trading in the first place. Result? They either end up buying crypto assets when prices are astronomically high or they just sell their holdings too early. Neither leads to a profitable crypto trading journey. The best way to tackle your FOMO is to have a comprehensive trading strategy that you stick by till the very end.
Avoiding Research
Newcomers in crypto trading often buy the coins that their friends suggest or the ones everyone is talking about. They don’t do their own research regarding the fundamentals of the project they investing in. Such crypto investments make a perfect recipe for a pump and dump scenario.
Conclusion
Crypto trading has a huge potential for giving you a fortune. But good things happen to those who are prepared. For crypto traders, to prepare is to know exactly what everyone is doing but they shouldn’t. If research and strategizing feel like not your cup of tea, you should definitely check more about crypto signals and how they can ease your crypto trading decisions.