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!
Justin Sun Proves Crypto Is Not A Scam By Hiring A Former SEC Official
“We’re ready to fully embrace regulation here. We’ve just hired our first head of compliance, who previously worked for the SEC for almost eight years.”TRON’s founder wants to make sure that TRON is fully regulated in the United States but also Korea and Japan. He made a point that Blockchain is a like a new operating system and that the worlds need to embrace it and be more optimistic towards regulation. He continued saying:
‘’The SEC, I think also sees the blockchain as good opportunity for innovation in the United States. I’m hoping that this year the SEC will license and regulate coin-based exchanges. This year will be the year of full regulation.’’One of the ways that Sun can make blockchain mainstream is by launching the BitTorrent Token on the Binance Launchapd. BitTorrent is a file sharing protocol that serves 100 million users in more than 130 countries. Sun acquired BitTorrent for $126 million last year. However, former chief strategy officer Simon Morris of BitTorrent said that there is no possible way for the TRON blockchain to be able to handle the transactions conducted on BitTorrent’s network but at the end, he ended up being dismissed as an incompetent employee.
UN Thinks Bitcoin & Crypto Are “The New Frontiers” In Finance, Focusing On Ripple And IOTa
“Cryptocurrencies represent a new frontier in digital finance and their popularity is growing. The decentralized networks for cryptocurrencies, bitcoin being a well-known example, can keep track of digital transactions. They enable value to be exchanged and can give rise to new business models which would otherwise require significant regulatory and institutional commitments." the report states.According to the UN, blockchain and crypto have many use cases. As it is explained in the document:
"For example, a value token called ClimateCoin is being considered as a basis for creating a global market for carbon emissions, allowing peer-to-peer exchange of carbon credits and a direct connection with the Internet of Things. It would then be possible for devices to calculate their own carbon emissions and purchase carbon credits to offset those emissions."The document also focuses on innovation and how it comes from inherent trust, citing that "the innovativeness of this system lies in the way in which the various parts combine to create the trust and guarantees that the traditional financial system derives from institutions and regulation."
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