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.
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.