If you recently started to rub shoulders with crypto investors, you are not the only one.
The truth is, the crypto trading market is only a couple of years old – and in other words doesn’t have a lot of experienced professionals. On the other hand, there are more and more newbies out there which desperately need advice on their trading decisions.
In order to help you and save you precious money, we are rounding the five most common mistakes that new traders are making nowadays.
1. They don’t think with their own head (and follow what the Internet says)
From Reddit threads to Facebook groups, the digital world is full of self-proclaimed crypto experts that push fake news or speculate things in order to justify their mission for a particular investment. These traders often lure the new ones to some investments that are not relevant – and ones that they eventually regret in the future.
2. FOMO – Buying High And Selling Low
The Fear Of Missing Out (FOMO) is what attracts many new traders out there to the entire crypto business – but also what makes a lot of them fools for buying crypto at its peak and selling at its low – only to prove that the coin “x” will go up or down soon.
3. No set and stop losses
A lot of new traders think that whatever they buy will go up forever or just dip a bit and then recover, shooting to the moon. However, this is not a case from reality. The truth is, new traders don’t use stop losses – as the friendly tool for limiting your losses that we all need.
4. No profit strategy
A lot of new traders enter the crypto market because of the FOMO – but more importantly – without an actual profit strategy. They are greedy and they think that they can earn money overnight. Then, the market dips and they are still in profit, but the greed is telling them that this is temporary and will recover soon. This is how profits become losses.
5. No basic TA knowledge
Technical Analysis, or TA, is a goldmine of countless resources that every trader can use. Even though it is not a recipe for success, it can definitely help new traders against potential disasters.
So, if you are ready to start trading crypto, make sure to learn something about technical analysis and the perks that it has to offer
We hope that this article helped you spot the mistakes and learn from them! Good luck!
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