9 Worse Trading Mistakes in Crypto Trading & How to Avoid

01/14/2021

“Crypto market never forgets a single mistake done by you.” A small moment of carelessness can be the greatest mistake you have ever made in your life. If you can remember this principle, it will help you not only understand these crypto trading mistakes; thereby you can avoid the blunders like other beginners.

Before we dwell deep into this topic, there is one more thing you should know:

While trading on crypto if you continue on making huge mistakes in a short span of time (unaware trading), you might never be able to get back into crypto trading again. Fortune has made the best and greatest ever profitable trading available for everyone in the form of crypto trading but a moment of carelessness can turn this fortune into misfortune.

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Those who understand this mathematical and mindset game and make the right decision can make the fortune and those who see this as other ways, only end up by losing their hard-earned money.

Now, this is your chance to become wiser and smarter at the same time. Make effective strategies and start earning profits today. Sign up with Botsfolio is the best trading platform for beginners and safely guides you into the world of crypto currencies.

This guide will help you in understanding those blunders and mistakes committed by many everyday in their trading. All of these tips are based on experiences and feedback taken from many traders and beginners in trading.

1. Start your journey with good strategies before investing

Trading is a skill, just like any other ordinary skill, to get expertise in this skill takes countless hours of practice and patience to master it .

It has few ground rules, and one of them is using paper trading before you put the real money. This part is boring for many, but it is one of the quite essential aspects of trading crypto. A lot of trading beginners who don’t mind losing money (gambler mindset), end up taking real money trade, before honing their skill.

2. Risk management

Knowing when to make the right decision and stop losses is the whole point of risk-management. It does not matter how confident you are about a trade going right, not using a stop loss is the biggest egoistic mistake you could ever make. Almost all the best crypto exchanges offer this feature to set a stop loss, and some of them also offer a trailing stop loss feature. If you follow this single strategy, one day, you might never need to feel sorry about anything in trading.

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3. Paying high brokerage fees

Brokerage fees (high trading fees) can eat a significant portion of your trading profits. The key here is to use a broker (exchange) that offers low fees trading, and have high volume and liquidity.

This way, you will end up making more money and can eventually make profits from trading. At Botsfolio you can start your trading with low and affordable transaction fees and start making profits safely and securely. Sign up now to start trading.

5. Do some basic fundamental analysis:

Most of the beginners start their trading by picking one of the most popular cryptocurrency, but such things might not be profitable all time. There are chances that for a prolonged time, you will end up making good money. However, one fine day, the coin dumps like there is no tomorrow, and a single big loss would make your portfolio in red for a prolonged time.

You must take some basic analysis before entering into the market and avoiding this crypto trading mistake by doing fundamental analysis of the coin that you wish to trade is more beneficial for your trading career.

How to analyze the trade:

  • What does this coin do?
  • Future outlook of the Cryptocurrency
  • The management team
  • Token economy
  • Based on these parameters, create a list of tokens that you would like to trade. Always remember, trading is unique for everyone, and you need to build your own system. If you are not sure about how to trade yet and are in a stage of confusion, don’t worry Botsfolio has covered you. You can start trading with very basic minimum funds safely and securely by a simple click. Sign up

    6. Trading based on Pump/dump calls

    There are some Telegram/Discord groups that provide signals for buying/selling crypto, and do they work?

    The answer is, NO!

    Especially as a beginner, you should better off not avoiding such pump and dump schemes.

    Such groups cannot give you effective results; when thousands of users are acting on the same trading call, the chances of those “Signals” working are bleak to none.

    7. Must have the habit of maintaining a trading journal

    This is perhaps the biggest mistake a lot of beginners in crypto traders commit when they enter trading. Writing down why you are taking a trade, and analyzing them at later stage helps you to find out:

    • Why specific trades are giving excellent results, and
    • Why you are losing some trade
    Maintaining a trading journal will help you to improve your trading strategy with time.

    8. Having No trading plan is the biggest mistake:

    “Failing to plan is planning to fail.”

    You need to have a proper plan before getting into any trading activity. That means you need to know your entry and expirations before you start making your move, the amount of capital to invest in the trade, and maximum loss you can take.

    9. Revenge trade

    In trading, as losses are inevitable. Not many users have built the muscle to accept losses, and they can end up getting into revenge trade. Such trading activities are based on fear and frustration, and highly toxic for your journey as a trader. Often, you might attempt to take riskier trades to cut down your losses, and such attempts are known as revenge trades.

    Conclusion: In Crypto trading avoiding mistakes is not possible all times, Humans do mistakes and should be ready to make and acknowledge some of these beginners trading mistakes. You should simply focus on making fewer mistakes every day, and that’s how you would keep perfecting your trading skills. Botsfolio provides a safe and healthy way of trading for its users. Sign up today and start earning your profits.