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Ukrainians are actively investing in cryptocurrencies, earning by trading and even mining. This is an actively growing market that allows you to make decent money. But not everyone succeeds in getting a profit, often beginners lose their starting capital already on the first transactions and are disappointed in cryptocurrency. How not to lose money on crypto? We will tell you what mistakes you should avoid in order to earn consistently and see progress.
Pitfalls for beginners
Earning on cryptocurrency may seem simple and guaranteed win-win. This is not true. Like any financial market, the crypto market is complex and multifaceted, and each of its participants, if they want to succeed, must learn and develop. Beginners investing in crypto often make the same mistakes:
- Unwillingness to understand the crypto industry. It is a mistake to think that you can cope without knowledge and special skills or acquire them in the process of trading on the stock exchange. You need to come to trading prepared, understanding what it is, what difficulties you will face, having an action plan and strategy. You can study on your own, in courses or in popular community cryptocurrencies.
- Emotional decision making. When choosing deals and opening positions, a trader should be guided by analytical data, emotions will only prevent you from getting a plus, leading to the loss of a significant part of the deposit.
- Buying cheap and untested assets. You should not rush to buy a new cryptocurrency just because you read about its prospects in some public. Always carefully study data from different sources, pay attention to the opinions of experts and professional analysts.
- The feeling that you are missing something. New opportunities appear literally every day, you should not hastily invest in all promising and promising projects. Take a break from cryptocurrency, do not focus on earning, plan and think over all your actions.
- Investing all savings. The cryptocurrency market is risky, so when you invest your own money, you must be prepared to lose it. Of course, acting wisely, you will save investments and earn money, but moral readiness for losses will help you maintain composure and not be disappointed in the field. Invest only as much as you are not afraid to lose if you fail.
How not to lose the deposit and start earning?In order not to drain the deposit, you need to consider the risks. Professionals use risk management. This is an effective risk management system that allows you to save start-up capital. You must decide how much you can afford to lose on one trade, within one trading day, week and month, and also determine the maximum acceptable risk for your deposit. For example, when considering the risks for one trading day, it is worth sticking to the mark of 3-5% of the deposit – such a loss will not become a serious problem by adjusting the trading strategy, later you can compensate for it quite quickly.
An experienced trader can control losses, but it is difficult for a beginner to do so. While you are gaining experience, put Stop Loss. This tool will automatically close the position if your prediction is wrong.
take Profit is another useful tool for a beginner. It will help you take profit at the peak that you set before opening a position.
Learning how to make money on crypto
Cryptocurrency earns those who take the matter seriously. Through training, daily learning of useful information, using analytical data, traders take actions deliberately, choosing profitable and safe transactions.
Learning on your own is difficult, it is much easier to master the skills of a successful trader and confidently enter the exchange under the guidance of a mentor. Join the crypto community Crypto Crew and take our training course. We offer an interesting and easy way to go from a beginner to an experienced trader who independently closes successful transactions. Our cryptocurrency community was created for everyone who is ready to learn, understand complex topics, accept constructive criticism from mentors and improve their trading strategy.