Rookie Mistakes When Trading Crypto
Introduction
Everyone makes a mistake at least once. This is particularly relevant for newbies in crypto trading... We have listed common mistakes that novice traders make. Here is a detailed map of the minefield: a great many crypto enthusiasts have faced similar difficulties. Let's get straight to business.
An Inaccurate Evaluation of the Financial Capacity
News reports that the BTC price has skyrocketed and all the "experts" say the same thing "It's buying time!". As a result some newbies blow their savings or even take out a loan. Wrong, so wrong.
If you have only begun to discover your power in trading, invest the amount that you can afford. P.s. some exchanges allow you to trade in test mode, which can be very useful for you.
Trading with Large Sums
If you think you'll get lucky, think again. This is a typical example of a non-professional approach that should be kept outside the trading process. Remember: easy come, easy go. You may indeed get lucky, but later money may just vanish.
It's better to start acquainting yourself with the world of trading with a small sum. At first, it will be very difficult to be totally cool about the exchange fluctuations in the chart. You can make kind of emotional decisions without first examining the facts, which will lead to losses of funds.
Cooperation with New Projects
Any organization can issue its own cryptocurrency. The market's pretty flooded with startups right now. You can't be sure that a newly born company will be in demand. Choose reliable projects that have been on the market for at least a year.
Risk Management
The rule is simple, really: you should preserve money. In trading, there is such a thing as "stop-loss" when a trader wants to limit his losses when the price reaches a predetermined level.
We will call your attention to the fact that unpromising coins may not recover their value. So, we recommend you trading on such pairs as BTC/USD and not taking any risks.
Excitement and Emotions
These are the main enemies of the trader. If you are a gambling man and your emotions get the best of you, you have to work on yourself.
Let us draw the parallels for you. There is a poker term "tilt" when a player loses several games and goes on playing with the hope of regaining money. Most often, it ends in large financial losses.
The Latest Cryptocurrency News
If you don't follow the news and just pay attention to technical analysis, then you may miss important milestones. Fundamental analysis provides many benefits. So stay up-to-date with breaking news on major cryptocurrencies.
In view of this, we call on our users to learn from the mistakes of others. Remember, cryptocurrency is only risky for those who don't understand how it works. The sooner you understand all the nuances, the better. At Equite we are always happy to answer your questions and help you resolve your problems.
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