According to statistics, 95% of novice crypto traders
end up losing their first deposit. Lack of knowledge is the main reason for
such an unpromising figure. Here are the top 5 common mistakes newbies can make
while trading cryptocurrencies.
Ignoring the news
If you don’t follow the news and only pay attention to
technical reviews, then you can miss out on important events in the financial
sector. Fundamental analysis has many advantages.
Know no bounds
If you’re a keen player and usually know no bounds,
it’s better to get your priorities right before engaging in crypto trading. Essentially,
you should rely on your experience and double-check the incoming information.
That is, relying on a short-term outburst rather than on a coordinated strategy
may lead to heavy financial losses.
Invest more than you can afford
Trading is a so-called lottery ticket — you never know
what you’ll get in the end. You shouldn’t invest all the money you have, just
start with a small amount. Ups and downs may scare every newbie, so first of
all make sure not to invest all your assets.
Investing in the hottest cryptocurrencies
Another well-known mistake made by inexperienced
traders is that they blindly invest in a top-performing coin. As a rule, the
most unprofitable transactions are made under the influence of panic, fear or
greed. When the price rises rapidly, a novice trader thinks that he is missing
an opportunity to make a profit. Make sure you keep an eye on a market
situation first.
Choosing an unreliable exchange platform
Using unreliable exchange platforms can result in overly
expensive withdrawals or trading markets becoming inaccessible at the wrong
time. As for the exchange services, some of them may use tricky algorithms to
charge you more money.
Disclaimer
This information is provided for informational
purposes only. Such information is not intended as and may not be relied upon
as trading advice. Before deciding to trade cryptocurrencies, you should
carefully consider your objectives, level of experience, and risk appetite.
Please do your own research and due diligence on the services provided by online
cryptocurrency trading platforms.
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