In any investment, you want it to be profitable. There is this one investment that caught the attention of many investors today – cryptocurrency. Cryptocurrency is a virtual currency that can be regarded as a form of exchange. It is usually decentralised, which means no government or central bank controls or regulates it. The transactions are secured with the help of the cryptography technology. Read smartoptions.io for more information.
The crypto market is enticing more and more investors every day. With this, there is no surprise that the market is growing. If you are thinking about investing long-term, the wise thing to do is to hold it. However, this is not trading. If you want to trade, you can consider a day or casual trading, which can be profitable. This will allow you to increase your stack faster. If you are a beginner in crypto trading, there are some obvious mistakes that you bravely faced.
However, there are discreet mistakes – you only know when it hit you hard. It is important that you identify these mistakes so you can avoid it accordingly. Here are some trading mistakes you probably didn’t know about:
Selling low and buying high
As a trader, you should always keep in mind one lesson: only invest in amounts you are comfortable to lose. The crypto market is highly volatile and as a beginner, you get scared easily. Anytime the prices will fluctuate and if you are spooked easily, you tend to sell right away. Panic selling is a common mistake most beginners do not realise. They are just keen on cutting their losses.
The problem with this approach is you ultimately lose money. Remember that most coins will bounce back in hours if not days. You sold it low and then seeing the surge, you will buy again and this time, the prices are higher. This cycle is enough to keep you broke.
Looking for the next Bitcoin
Bitcoin is very popular because it started at 0 value then rose to $20,000. This is obviously an impressive gain. Aside from Bitcoin, Ethereum and Litecoin also recorded the same returns. While it is good to remain positive, you have to realise that not every coin will follow the same path. For beginners, they tend to buy other currencies hoping that it will be a massive hit. As a trader, you have to understand the specifics of the coin such as price history and future projections to make an informed decision. You can browse through smartoptions.io as a start.
Spending all money at once
One mistake often overlooked is spending all trading money at once. Many beginners consider this thinking that returns will be greater. You have to understand the logic behind diversifying. Diversifying will mitigate the risk. If you find a good investment, you should buy at least 50 to 60% of your funds. Hold the rest and see if the investment works.
Now that you know the mistakes, you will be more vigilant. There are many resources that you can consider to guide you like smartoptions.io, Telegram groups, and even Twitter. It is overwhelming trading crypto but its potential rewards are great.