Bitcoin Forum

I m new in Cryptocurrency so can anyone tell what are the risk factor in trading for beginners?

And what are the precautions?

First of all of you are new to cryptocurrency without any forex or trading background then trading crypto would be not be the best method for you to get profits in this industry as would only lose your capital quickly if you do not know what you are doing. I would suggest for you to earn more knowledge on how to analyze the market and learn the charts and graphs of cryptocurrencies as it would help you greatly in trading. Along with that try other ways of earning in this industry without investing any money while learning how to trade properly. I would suggest participating in bounties and airdrops first is a good way to start.

Risk factor is you can lose absolutely everything, so the yardstick as with all investing is do not invest more than you can afford to lose.

I analyze some risk factors that are usually done by beginner traders. First, they are beginners then new euphoria follow trading so often do trading and have dreams sky-high from capital. This can be prevented by preparing by way of reading and monitoring many trading moves that have been done by professional traders. Secondly, beginners without trading science just carelessly in trading. This can be prevented by creating a trading strategy. A good trading strategy will help you to read price movements and make profits consistently. Third, usually beginners do not plan good risk management. Risk management is an important thing to be considered carefully before you start trading. Finally, beginner traders can not make an analysis where he makes mistakes. This should be prevented by making trading journals. With trading journals then you can record every trading result you do. It is useful to learn where you made trading mistakes so you will not repeat them again.

The main enemy of success is greed. Act strictly within the proposed trading strategy. It is important to stop and close the position, fixing the profit or loss. Otherwise, the potential income can turn into losses, and small expenses will turn into a strong blow to your deposit. Patience refers to working with open positions and waiting to enter the market. If you do not see the prerequisites for a profitable purchase of a crypto currency, do not try to play at random or participate in a risky game for the sake of scanty winnings.

Don't blindly pursue profiteering, don't ignore stop-loss, don't always think that you're lucky, don't rush back to this, and use long-term vision to analyze the market!

One of the most risk for beginners is fomo
Or green candles

Most beginner traders are tempted by hype news
Or by green markets when there is constant buy and sale of the token
Situations like this tends to make it very tempting

But as a beginner, you need to make your literal research and arrive at a considerable decision to opt and ensure you are making the right purchase decision

Each trading has a risk not only in the new start trading but the risk can also occur in those who already have experience.
Do research on coins that will be in this trading will be able to avoid big losses.

The major risk factor is high volatility and the must have precaution is fixing the profit point . Because crypto currency  fluctuates highly if you selling coin for your desired profit next day it may increase 10x profit . Otherwise it may reach 10X loss . Lesson learned from my past trading experience is fix the profit and be happy about it.

To have a stop, you must have your own investment plan for the newcomer. Don't look at the price of the market every day. That will destroy your judgment of the trend.

The only risk for you if you are getting traped at the peak. I meant sometimes you can't predict the market direction and you the dump has already happened.
The volatility can become the big risk for the beginners. Because the majority of them are new in the cryptocurrency and they don't know how to face it.

Only try to trade when the markets are in red and try to sell them when you have been getting a decent profit. Remember to choose the major market to give the best liquidity for yourself.

There are many risk factors if you're a beginner, first is your money you might lose your investment any time if you have insufficient knowledge about the trading platform in crypto world. Your emotional state is at risk too, because if you lose many coins you might get depressed in the long run which is not good for your health. You must always ready before you engage in cryptocurrency trading. You have to gain knowledge and skills in order not to fail and not lose your money, of course, that includes the right positive mindset in every failure you encounter.

In the transaction of the password, the biggest risk of the novice is that it is easily affected by the intense market fluctuation, and then the operation is continuous. It is likely to lose a lot of money.

the only concerning risk for a beginner is the fact that they don't understand how the market works so they end up making weird decisions such as buying into shitcoins that are already in a bubble, or worst of all following some scam pump group that calls themselves things such as "trading signal"!!!

the precautions is to just start small and invest a small amount of money that you can afford to lose. spend a lot of time learning what makes the market move and trying to predict it.

You have to know first how the crypto market works! When to buy? when to sell? And how long should you hold your coins.. these are critical points. You have to use the right tool for trading crypto too. Analytics and auto tasks will save your time. Ftec is a good upcoming platform for trading. You have to keep an eye open on it: https://ftec.ai

As a newbie in crypto, before you start trading, you should have a very good knowledge of how it is done because if you make any mistake, you might end up loosing you coin. So,take you time to read through all you need to know about the trading. You also need to be careful with decidions you take about you coin especially when the market is going down.

There is lot of risks that is involved in trading as a whole, even more when you are beginner. As a beginner you are more likely to make a lot of losses in your first trades because there is no way that you know how the market prices work well enough to predict them.

Hey, am not a trader at all but even non traders in crypto know that crypto market often contradicts traditional charts or lives its own live, that is why I would recommend not to follow traditional rules and charts you might be tricked. Second, as you are saying you are beginner you should follow some veterans in crypto trading, I know few, among them: CryptoDog, AltcoinKing, CryptoMichael and many others.

Yes there is the huge risk for the beginner in cryptotrading as the new comer is not having much knowledge of market so he/she should take advice from  the senior players before investing in any ICO and make sure you should go through all the whitepaper properly.

Emotions and a few knowledge how to analyse are main problem for novices. You must train patience. And learn quite many as possible. Because this expands the possibilities.

Lack of knowledge and experience. It is believed that 95% of traders lose their deposits. Therefore, proceed from the fact that you will lose your invested money.

I see many beginners who buy crypto just follow the market trend and follow other trading signal group, they want to profit fast, buy with high price, without consideration and research. But when the market moves down, they immediately panic, trapped and decided to immediately sell its assets.

I'm also not good at trading, but I always learn from the mistakes I've made and I accept criticism or suggestions from others to get better.

If you are new to cryptocurrency and how they are moving, I suggest to spend time more in studying and do more background research first. The price in cryptocurrency is so volatile, in any seconds, the price of the coin changes to +/- . When you are trading, my advice is to make a small capital first, because it will not hurt, when you make a wrong move. Its best to experience that, cause you learn a lesson from it. Welcome to the crypto world and good luck.

Very high. Way too many lessons to learn.  You naively expect one thing other things happen.  Impulses and rationality can both be wrong.  Lots of fallacies in beginner thinking.

Way too high, if you are just getting into the cryptocurrency market then you might want to stay away from trading for a while until you understand the market better. Trading is one of the most risky things that you can do with your money in the crypto world. That is why you should never rush into it if you do not want to lose all of your money, educate yourself first before you trade

There are way too much risks involved in trading for a beginner, you should give yourself more time to understand the market before you start trading

As a newbie in crypto, before you start trading, you should have a very good knowledge of how it is done because if you make any mistake, you might end up loosing you coin. So,take you time to read through all you need to know about the trading.
good luck..... :) :) :) :)