So you’ve bought your first fraction of a Bitcoin and followed up with half a Ripple. You’re now ready to dive in into the world of cryptocurrency traders. It all looks great until you went and committed one of the following rookie mistakes…
Not putting the work
When investing in cryptocurrency the best practice is to understand the product and its value. Don’t just listen to people online in the social media platforms. If you’re a beginner, make sure to put some work in learning about buying and selling cryptocurrency and exploring the market. There are trusted crypto review sites where you can get expert opinions on the legitimacy of most coin offering. Do your research before you start trading!
Putting money that you can’t afford to lose
One of the biggest mistake you can make is investing money you can’t afford to lose. Just like any form of investment, you need to realise that cryptocurrency is essentially a gamble. The crypto market is highly volatile, and coin prices rise & fall on sometimes an hourly basis, driven by hype, news coverage, and a dozen other factors. Only invest in with funds you’ll find easy to let go. Never mortgage your home, or use your join account saving funds to invest in crypto; you may end up losing everything.
Controlling their emotions is one of the best traits successful traders have. Emotional grading can result in huge losses.
A lot of people are overconfident when trading cryptocurrency and this can be dangerous. Many traders – particularly the beginners – assume that because they had the luck, they will likely to continue being lucky.
The problem with overconfidence is it can result in poor or bad judgement calls, costing you a lot of money in the process.
The bottom line is, trading is not that simple. However, if you invest time and take the basic steps required to learn trading and risk management, one can succeed and become profitable.