Bitcoin Forum

Every day some people get into the crypto currency trading.They come to know about cryptocurrency from their friends or relatives.They start trading with some capital and when the bear market comes,their balance will be reduced some value.After seeing a small loss,they will cash out the money and fly from crypto currency trading.The following steps will help such new people to avoid loss from the crypto currency trading.

1.Crypto currency is not a stock market trading,you need to wait longer period as compared to the stock market.In stock,you can earn 5% in short period,but in crypto it take short or longer based on the market flow.

2.You have to learn trading by using a little amount of dollars in practical experience.You should not consider such money as loss.After you learn trading,you can earn 10-20x of the loss money.

3.Stock market will give you profit lesser as compared to crypto currency.You can earn 10-30x of investments by investing on potential crypto currency.You should ready to hold till the expected profit had gained into your wallet.

4.Holding for longer period with some patience is most essential one in crypto currency trading.Because the market flow is purely based on the demand and investment to the cryptocurrency.It may vary on every quarter of the year,mostly it started to increase after the first quarter.Mostly after the month of April in every year.

5.When the market volatility is high,the market flow will be maximum.You can get profit at any point of the market flow.If you are ready to hold for the longer period,the profit would be maximum then you had expected from your investment.

I think you are mistaken here. If there is anything true, it's actually the opposite. Cryptocurrency markets are more volatile and therefore one can make a higher ROI in a short period of time as compared to stocks where they may have to wait longer.

For example, Bitcoin moved from $16K later last year to about 31K recently, and it's not even a bull run. How many stocks can make such a move in just a few months?

You are absolutely right many newbies leave the crypto market after losing their capital in bear markets. They don't have proper knowledge about crypto trading and start crypto trading without getting the necessary skills that a trader must have.

I agree that crypto is way more volatile than stock market, and in crypto market any bear run could impact the price of a coin way more than 20-40% in a few days. Many pump and dump coins lose more than 99% of their value in such bear markets.

Buying at right time and holding for a long time is the only working way to earn in crypto market for new traders. Experienced traders can earn from crypto market in bear markets as well, and the earnings from crypto market are way higher than any other market. There is no luck in crypto world, only those traders win who can control their emotions, and do everything with proper planning.

Not sure if these advices are useful at all simply because it doesn't apply to all coins/tokens. With most coins/tokens the best strategy is to get out quickly after a certain amount of percentage increase; the holding for long periods part is mostly only with bitcoin and a select few altcoins.

It starts with how people do their research, analysis and decide to begin trading with a coin / token. Their initial reason and plan to start trading will decide how long they will be ready to let their position opens and their capital will still be safe.

If they have no plan at all, they are gambling and they can try to let their position opens with hope to get profit. In fact they don't have plan to close their position and exit the market just to protect their initial capital. That will lead to serious loss if market goes bad enough.

In my opinion, all market is the same there is a moment when you gain and also there is a moment you lose, no matter if you newbie or a pro. The only different is our personal technique to tackle the market. Like money management, trading indicators, and so on.

But in the case here some new trader is lack of knowledge so they end up losing and leaving the market. whereas to become pro trader we need time to gain more knowledge and testing many things and lose sometimes

I respect your advice, but then it is misleading, and let's start from number 5. The high market volatility means that liquidity can pump and disappear in a short time, so it is the wrong time to invest because it is the end of the wave, and then you will only find yourself on the beach and not in the middle of the sea, meaning that it is a period of money withdrawal and not pumping it.



Here is spot trading and futures trading, and therefore the same options. On the contrary, making profits in the cryptocurrency market is fast because trading is not stopped on the currency, as is done in stocks that rise or fall by more than 20%.


Only invest in money that you do not need or that you are not afraid of losing.

This is true, but it comes with greater risks.

I think the main one is protecting your capital from heavy losses. Also, follow good risk management and use only 2% of the capital for trading. Patience is the key as well.

Not only about techniques, it will be differ with knowledge also if you don't know how to handle losses then it might lead you to loss more in the future with your emotional stability. Plus the afford to risk your funds also counts as it will affect your decision making since your anxious to put your money in the market. But it's common for newbies to have losses it's up to them if it will continue as they pursue to be part of crypto industry. Even what you called pro trader started as them so don't be afraid to risk and still put money that you afford to lose.

This is the expectation of every experienced hodler of crypto coins but unfortunately not all understand that. The challenge however is not knowing when that volatility will come and that is why at the little drop some people will panic and sell. The market could be manipulated some how for weaker hands to run out and that is exactly what happens sometimes with the price.

When compared to the stock market, cryptocurrency volatility is substantial. If it were possible to gain 5% profit in the stock market in a short period of time. In cryptocurrency, you'll earn more in some coins, particularly those that are usually pumped.


This is where most newbies make mistake, investing all the money they own into cryptocurrency. Even the master traders feel bad when they lose some significant amount of money in trading, so a newbie will feel uninterested and will leave the market sooner than expected.

Lol, you sure about this?  Cryptocurrency is highly volatile, speculative trading stuff.  Cryptocurrency depending on what coins or tokens you are invested with can be either very short term to very long term investment.  When I say very short term, shitcoins are often good for weeks or few months of investment, if you failed to sync with the market, you will lose the value of your holdings since the market will become worthless once the pump and dump is executed.  Cryptocurrency is more volatile than the stock market and cryptocurrency market is open 24/7 while the stock market isn't.


If we don't have money, we can use dummy and demo accounts to simulate and practice trading.  There are sites dedicated to this.  You can just google a demo trading account and the internet will give you lists of sites where you can create demo accounts for the practice.

You are right on some things maybe even more if you want. But all of that is based on the ideal of a suitable trader in crypto trading. Because some people who are carried away by ambition actually fall down with considerable losses. The reason is when you are able to control your mind in crypto trading, all other aspects will be easy to control too. Beginner traders come with the aim of getting instant profits because they are matched with experienced influencers, as a result many conclude negatively that crypto trading is like gambling.

True, there's is more reward in crypto trading than in stock trading. And the reason is quite obvious. Stability in the stock market compared with the crypto market. Lower risks in the stock market, compared with the crypto market.
Although, I like to think that we would see the crypto market looking more like the stock market if eventually it becomes regulated. We would see less volatility, meaning less risks.

Definitely we can say that it’s all about Volatility of the crypto currencies. So whatever is explained in the first two points has got direct relation with that only. The problem with the new traders in crypto is, they will follow what they learnt in the share market. It’s highly uncertain market. For the decentralised coins it’s always high volatility and no one can control the market at all, the volume could be very high at times while it could be less at the other times. But in many instances the new comer would just think it’s the old strategy they have to implement and they go all in without second thoughts. They definitely lose before they could get hang of it. :)

You are right that a person can only learn when he become engaged in practical use because just knowledge cannot teach you everything sometimes practice is necessary. Sometimes individuals of crypto does not succeed and are unable to get what he wants because he doesn't have any experience but he just read about it and hear about it through which one cannot get complete knowledge. Success will be only attain when you also engage in actual field and work for it by using your money.

If they don't have the will to wait and sell at a panic. Then they are better of the platform. This is why in every situation, it is important to gather the knowledge first. But most importantly, gain a control over emotions. In the long run, this is what's important. You need a mindset not to sell when the market is low, just hodl till you have reached your target profits.
Sounds easy, but what made you do it? Emotions.
Also it is important to gather experience. But they just want to learn and earn from their first trades. You can't do the both at the same time mate. First comes the proper knowledge, then the experience, and lastly if used correctly, you can earn profits.

Hearing about crypto from relatives and friends is not the actual thing but it is necessary to learn before starting because sometimes people start trading and investment but they don't know rules and regulations so they fail to get the benefit.

People should keep in mind that quick benefit is not possible but one should do all possible efforts and use their active mind and concentrate on market conditions so therefore they will be easily achieve the better outcomes.

Getting profit and losing money is the part of this so we cannot ignore these two factors but it depends on our decisions that what we try to get.

One piece of advice I have read and I kept reminding myself about it that new traders should also realize before diving in is that there is a cycle of bull runs and bear markets. When the goal is to avoid loss, it's the investment timing and then waiting for that is to point out for them.

The volatility can be used to advantage but usually, it's BTC that has high volatility even in the bear market.

trading will be a bit different than investing. although you can trade for a longer time. or you can place a buy or sell order within a certain time. you will not escape the greater risk. if that's your way, I suggest always putting a stop loss. it will slightly reduce the risk.
but for beginners, it's better to try to invest in Bitcoin than try to trade more riskily.

It's really difficult to jump right into this bitcoin trading without knowing which usually only leads to the loss or loss of capital due to the absence and lack of knowledge here.

Moreover, the volatility of Bitcoin is very high which makes it very difficult to predict what or where its market value will go, whether it will go up or down. So what you are saying is correct.

Main difference i feel from stock market is the volatility as it's crazy high in Cryptos as compared to stocks. Moreover you have sellers freeze and buy freeze there you don't have any such things in Cryptos. The seller freeze make sure that market doesn't gets an infinite dump in a day just because of a bad news or even sometimes fake news. Also i think having expecting 10-20x returns from Cryptos is also very unrealistic. I think one should have a target of 10-20% increase per month, nothing more than that. 10-20x is a thing that happens once in blue moon.

2.You have to learn trading by using a little amount of dollars in practical experience.You should not consider such money as loss.After you learn trading,you can earn 10-20x of the loss money.

This is where you should really be minding or needs to be followed initially when you are really that a complete noob.Never ever make yourself put in a hurry on making profits in short duration
because this would really be creating that kind of desperation which is something that you should really be needing to avoid because instead on making money you would
eventually lost money instead because of desperation which would really be derailing you out of your strategies.

Op here you have created many nice knowledgeable posts for newbies to trading. Actually new traders enter first with ideas from different people. They consider themselves to be very experienced when they come to the trading platform. They participate in trading without analyzing the market. As a result, when the market goes down, they fall into financial losses. But if the newbies trade according to your post then surely they will learn a lot and the chance of loss will be much less.

From my side I want to tell the newbies that you don't get greedy in trading platform and don't trade with passion. Because most people who lose money lose because of these two mistakes. Proof of this myself two days ago I participated in the futures trading platform but did not sell it even though I had a profit in the first instance. But currently I am in big loss in that trading. So I want to tell you that you should never trade with greed.

But the problem with beginner traders are they are more on emotions than trusting their own minds. That’s why it’s easy for them to fall and believe into crypto influencers and literally follow their advices, rather than doing their hard work in researching so that they can come up with good personal analysis. And with greed motivating them, the reason why they instant trade and instantly lose their funds too.

Good tips, but they are all about patience in trading. Yes, patience is one of the basics of trading, and whoever does not have patience is better not to enter the field of trading.

But trading is not only about patience, there are many basic skills that a trader must learn in order to be able to succeed in trading, in addition to the basic skills there are many personal qualities that he must possess, such as controlling emotions, not rushing, persistence, and not despairing when losing.

One of the most important skills is choosing the best times to enter and exit trades, there are a lot of other things a trader has to learn all of these things step by step.

This just applies to bitcoin not necessarily for every cryptocurrencies cause that is where most newbies make mistakes, they think Bitcoin is way too high so they are looking for next bitcoin which may become high priced asset like bitcoin oneday and dump their savings or even everything but investment won't work in that way.

To be successful investor you need to diversify and to be a successful trader you need experience which will comes along with lots of bad times though.

Most particularly for trading where an individual needs practical training more than knowledge so that he can be a good and profitable trader later on. However when it comes to losses, there is no exception to that, whether you’re a pro or newbie in trading. The only difference is that pros in trading have gained more and better experiences than newbies, that’s they have the ability to reduce the risk level of losing from trading.

This is easier said than done.

Not all of the newbie traders could handle the stress they will get in the process, the frustration because of expectations that didn't meet, so automatically they will conclude that trading is not for them, which is not a bad idea since all they wanted is to ensure their funds. There's a lot of opportunities for them, not just trading so you can't really blame them if they chicken out of trading real quick after they lost some of their fund.

The bitcoin price is very unstable where prices can change quickly at any time. A high ROI can be expected over short period of time (e.g. a few months) depending on where the bitcoin phase is at the moment. It is always possible to find price recovery after the bitcoin price dump to low like it did in 2022 which was further followed by recovery during January 2023 to now.

You should sell your altcoin as soon as possible as long as you get returns, altcoin are fundamentally very different from bitcoin so you should handle them differently too. If you can expect bitcoin to bring you long-term returns, then it probably isn't the same for all altcoin. Buy bitcoin and make it your holding asset, but some altcoin also have long-term potential.

Yeah, there are very few genuinely different cryptocurrencies created apart from bitcoin for different purpose but some of then were forced to be dumped so that is the risk of investing even in a good altcoin but bitcoin crossed the stage of controlling anymore which can be manipulated but its the only cryptocurrency can't be controlled even though if a government say a complete ban on bitcoin still its hard to stop the bitcoins circulation.

Don’t get too strict with these rules if you are a newbie. Just trade with cool mind and with proper knowledge. While choosing a coin, do a good research on the coin, it’s background and popularity plays an important role also. Next observe and study the market, at what time of day the price goes or on what special days the market falls down. At last trade with the amount that you can afford to lose. Don’t just put all your savings in trading and make your life in debt. Most importantly don’t become greedy and keep on cashing out little yet steady profits.

This sounds interesting. I thought patience is mostly needed in investing because the concept of it is to hodl till the bull run and we know that bull run doesn't come often. Trading is hard to learn so patience is needed at the beginning but once we are ready, that is the time for us to trade non-stop and earn significant profits.

There are newbie traders who lacks in patience and don't finish their training properly. They are the ones that you are referring to, that must not be here in trading. They better do gambling in casinos because it doesn't have a learning curve. There is more in trading but those things can can be achieve as long as we have a patience.

Great points dear OP, but I think these points only circulate around a few things like "holding for a longer period and stock is better than crypto for profits". But what I think is, trading in crypto is much easier than in stock because I had still not learned a thing about stock trading but in cryptocurrency trading, things are theoretically much simpler. Most of the newbies to whom you aforementioned are also not familiar with stock trading, (like the majority of them) because if they do familiar with it then they are not the ones coming to crypto trading by hearing it from friends and relatives.

So, for newbies, I prefer you guys should follow some basic tips,

• 1. Buy with only that money that you afford to lose
• 2. Do not start with real money, start with demo accounts to test your mindset and strategies
• 3. Always follow your plan which you made at the start before entering the market because once you see the profits or loss you will fall prey to market sentiments which you should avoid.
• 4. Understand, charts, news, and how many factors try to manipulate you frequently to make and lose profits,
• 5. Do not waste your time and money on learning complex algorithms and tools because you are not a pro so you don't need them.
• 6. Do not fool yourself by saying, by joining a VIP group where trading signals are shared, you will get a great experience from it and learn from it. No, you will not learn from it instead you will become dependent on it and your mind will become stagnant not progressive.

10% is about buying
10% is about selling
And the rest of 80% is about waiting / timing , that's the formula.

You could always have your own candle lines in predicting the bull cycles and the bear one , but always remember that patient to wait is they key to have your money in crypto gained in value overtime.

Success is achieved not by taking shortcuts, but by following a step by step process. If you are still new to trading, then never act like you’re already a pro in it. Set your limits and only trade with a minimal amount, so that if you lose you will have no rooms for regretting. And when you’re already making consistent profits through trading, then you can set an increase on your capital so you can also gain bigger profits when your trade succeeds.

Rather than saying "to avoid loss", much better if we say "to minimize loss".

Even those considered professional and long-term traders can't avoid losing at trades, regardless of the market trend. To prevent or avoid losing money in trading is something impossible to happen knowing how volatile and unpredictable the crypto market is. We can't avoid it but somehow we can minimize it.
 
For me, it's better for new players to experience struggles and challenges right away during the start of their trading journey in crypto for them to realize what's the best thing to do in the future. Remember those users who started their journey at bull run? I believed almost the entire of them thinks that earning money in crypto is easy and they are all smart during the bull run. But when the bear trend came, I also believed that almost the entire of them vanished.

Building experience is the key. These new players will soon become experienced ones if they will be serious to build and progress their crypto-trading journey.

You've provided some valuable insights for newcomers to cryptocurrency trading, emphasizing the importance of patience, learning, and understanding market dynamics. It's crucial for new traders to recognize that cryptocurrency trading differs from traditional stock trading in terms of volatility and potential returns. Developing trading skills with small amounts of money, holding for longer periods, and being aware of market fluctuations will help them navigate the crypto market more effectively.

In some cases, you could argue that you are even more correct. But all of that is predicated on the ideal trader for cryptocurrency trading. Because some individuals who become overly ambitious do in fact collapse with significant losses. The reason is that once you master mind control in cryptocurrency trading, all other parts would be simple to master as well. Because novice traders are paired with seasoned influencers with the intention of making quick money, many people draw the incorrect conclusion that cryptocurrency trading is similar to gambling.

While it's true that there are some differences in stock trading cs crypto currencies reading, o don't think that volatility is so two different between the two. When it comes to the stock market there are medium to small size stocks that have a high volatility and easily move 5% in a few days. This either die to the high risk involved in the company, or the small number of shares publicly available to trade. In the blue chip market  however there are some large companies which have a very small risk profile and won't be moving more than 1-2% in a week or two. In the crypto market we have the exact same, there are some high risk alt coins which can easily move 5% and then there are more popular coins which don't move so much. Both in the stock and in the crypto market the general market risk is the main driver of price changes and needs to be monitored. That's why I think that a successful stock trader will do good in the crypto world and vice versa.

I actually wanted to continue reading your great tips for newbies, but after reading your number one point, I gave up and decided not to go further.
Have you traded stocks before and compared to crypto trading?
I mean, cryptocurrency gives higher return of investment within a short time than stocks.
We are not even talking about Bitcoin. In this case, let us assume some altcoins that can make x10 within 12 hours. This can never be seen in the stock market.
Cryptocurrency is more volatile, more rewarding and more risky.
You totally missed the tips up and it can be misleading.

Well, I assume that the early days of trading are all about learning. And definitely, we can't assume as well that it has good trading results but for sure, losses and disappointment are gonna have to experience. We can't expect newbies to learn fast because even how many tips to read, no matter how much advice they've heard, it all be gone on their minds when they are in actual trading because what they have now is to find a way how to save their own.

I'd rather prefer to make their loss on their first attempt so they can feel and understand how trading really works and make not underestimate the volatility of the market.

It's not wrong to have an ambition and all of us has it but what is wrong is when are rushing to get it that we are now doing the wrong things. We must realized that our ambition won't ran away so we must calm down as it helps us to think and act better.

The first thing that we must practice before we start learning trading is to control our mind (as you said) because once we can control it, we can now study more effectively and we can later on apply what we have learn. I'm very sure that we will like the early results that we will get. That is what we are talking about here. We are now ready on achieving our ambitions with the help of crypto trading.

Alright, stock trading might be yawn-inducing compared to the chaotic rollercoaster of cryptos. But remember, high stakes often come with high risks. Yeah, you could pocket some fast cash with altcoins that explode like a supernova. But what ascends must descend, and if you're reckless, you might be drowning in a sea of regret.

That doesn't mean you should steer clear of cryptos - no way! Just adopt a long-game mentality and make savvy choices rooted in thorough analysis and market patterns. So, dive into those altcoins, friend. Just keep calm, do your homework, and never forget that in the crypto jungle, there's no such thing as a surefire win.

And for someone to become a good and profitable trader, you need to experience losses at first so that you can easily adjust to the different market factors that could easily come unpredicted. While practical application is very much important in trading, as that will teach you how to make good market analysis through your various experiences as a trader.

Learning then earn, that's the main principles of trading. Newbies should undergone crucial crypto related studies before entering a trade. It's advisable to trade what we can afford to lose, because it's not respectable by any organization, it falls when it wants to, and pump when it wants to. Losing a trade is part of experience, because next time one wouldn't want to make the same mistakes that led to losing. Newbies are panicked whenever a trade is not going to their direction, they quickly close their trade.

Those set of persons are obviously not traders rather they were only taking advantage of the bull run. A real trader will make money irrespective of the trend be it bullish or bearish. And bear season is always the most profitable for traders this applies to traders who understands their trend interpretations well.

At this stage in crypto currency growth and expansion, especially Bitcoin it is not advisable to guarantee anyone maximum profit. It best to tell them their patience will yield results which is quite understandable and it takes extra skills to get profit at any point of the market flow. Crypto is one investment that requires more study than investing. The more we know, the more. Profit in Crypto isn't meant to be overhyped to avoid getting into trouble.