Contents of this article:
High market volatility, a variety of assets, and a low entry threshold attract people to the crypto industry. But some successfully earn money, while others lose their own money and are disappointed. Why is this happening? We will tell you what mistakes beginners make, how to save a deposit and get a profit.
Mistakes of novice tradersA trader is a profession, and quite a difficult one. The main difficulty lies in the emotions that not everyone can cope with. Cryptocurrency error a trader who has just started his journey in this area – the inability to cope with emotions that lead to impulsive actions. A successful market player must be able to stop in time, be guided by cold calculation when choosing a transaction, and also have a clear strategy for action.
Mistakes of cryptocurrency traders that do not allow you to earn:
- trading without knowledge and skills;
- lack of a trading strategy;
- ignorance or misunderstanding of the principles of risk management and money management;
- inability to use software tools of exchanges and cryptocurrency platforms that limit losses;
- desire to recoup;
- high emotional stress, lack of rest;
- an investment portfolio consisting of a single asset, lack of understanding of the importance of asset diversification;
- storage of cryptocurrencies on dubious and unreliable platforms;
- unwillingness to pause between deals;
- blindly following pseudo-specialists who promise huge earnings here and now.
Investing in cryptocurrency, beginners often make mistakes, it is impossible to avoid mistakes and risks, even experienced traders lose money from time to time by taking rash actions. But you can reduce the risks, and for this you need to approach trading as a job, learn, master skills and improve them.
Trading without knowledge – loss of deposit
The main mistake of a cryptocurrency trader who has just entered the industry is the unwillingness to learn. The lack of basic knowledge is guaranteed to lead to the loss of the deposit in the first days, if not hours of playing on the stock exchange. Often, the reluctance to take learning seriously, gradually and slowly merging into the process, is due to the desire to earn as quickly as possible, but usually it only leads to losses.
The cryptocurrency market is famous for its high volatility. To buy an asset at a bargain price and sell at the peak of the rate, it is not enough to have good intuition, you need to study the psychology of trading and all market participants, understand trends, pay attention to news and be able to analyze them.
A blunder when trading cryptocurrency is the lack of risk management. This system is necessary to manage risks and save the deposit, it consists in setting the maximum allowable risks for one transaction, trading day, week, month and the maximum possible risk for the deposit for the entire period of being on the exchange. Without a clear risk management system, it will be difficult for you to resist the temptation to take risks and recoup, and this will almost certainly lead to a drain on capital.
Another mistake of a beginner is an inattentive attitude to analysis. To make money on crypto successfully, you should understand technical and fundamental analysis, find out how they work and learn how to use the data that every trader finds in the public domain. Schemes and graphs may seem too complicated and boring, but this is a necessary basis, without which it is difficult to make accurate forecasts and make the right decisions.
How to save money and start earning on cryptocurrency
The first thing to do before starting trading is to understand how the cryptocurrency industry works, how exchanges work, what coin rates depend on, what manipulations are used by experienced players to influence trends, what is technical analysis. This and much more you will learn on the course from Crypto Crew. We have developed an effective and accessible investment and trading training program for everyone. Studying with us, you will not make mistakes when buying cryptocurrency on Binance and other sites, learn how to invest in promising coins, play on the exchange successfully and safely for your deposit.