Over the past few years, I’ve noticed a lot of people making mistakes when trading Cryptocurrencies.
Avoiding these blunders puts you ahead of 90% of all crypto investors.
- Emotions: The best traders are those who are emotionally apathetic, which is a difficult but not insurmountable goal.
- Not buying low and selling high: Because of this and other factors, the majority of crypto traders act in the exact opposite manner. After it hit $60,000, a lot of people started buying Bitcoin, and they sold a lot when it fell to $30,000.
- Putting all of the eggs in one basket: Rather than just one coin, invest in multiples and keep them safe (BTC or similar). If one of them returns more than 1000 percent, you’ll be able to compensate for the losses of the other coins. Many newcomers are taken in by the hype and end up losing everything they have worked for.
- Don’t invest more than you can afford to lose: Investing money you cannot afford to lose in cryptocurrency trading is a recipe for bad decisions due to overconfidence and irrational behavior. The percentage of your total net worth that you allocate to trading should be between 10 and 20 percent.
- Don’t buy crypto coins that have no sense or don’t bring significant improvement in tech: Nowadays, there are a lot of coins that have no technological value (shitcoins). EOS, Tron, Litecoin, and other short-term coins should be ignored in favor of long-term coins that have the potential for growth.
- Don’t be afraid to buy yearly: If you have faith in the potential of a new crypto coin, regardless of how obscure it may be, buy the dip 🙂
Do you have questions? Submit a comment below or drop me a line: [email protected]