Most common mistakes made by beginner crypto traders!

[elyorman]

Since I started working in the field of crypto and blockchain I have been meeting so many people with very common mutual mistakes and I am already convinced that the rate of making serious mistakes is incredible high. Today I have read an article that explains some of the most common mistakes and decided to share it here.
If you have something to add it would be even better for sure.

TOP MISTAKES MADE BY CRYPTO TRADERS BEGINNERS
Trading (trading on the exchange with cryptocurrencies, including bitcoin) is a type of activity that involves work to extract profits from the trading process. As in any other kind of activity, in trading, it is essential to develop specific qualities necessary for achieving high competence, in particular, an analytical mind and attentiveness.

Many come to the crypto-exchange, hoping to earn on a difference in the exchange rate quickly with minimal effort. However, reality makes its adjustments, and a novice trader may soon be disappointed in this kind of activity. Why is this happening? What mistakes must be avoided?

1. Unwillingness to study the situation on your own
Anyway, it is you who will spend your money on buying cryptocurrencies. If you do not understand the product and its value, but only listen to "experts" from Medium, Twitter or Slack, who tell everyone when to buy and sell currency, you will get into big trouble and lose a lot of money.

If your decision to buy a currency depends on the opinion of someone else, then you will have to rely on this opinion and when selling. Do not be a layman. Explore the market in which you work.

2. Putting the money that you can not afford to lose into the trade
As an example, we will bring to the deposit all your available savings, or, especially, loan funds.

Not a single person is insured against failures and mistakes; even professional traders often bear significant financial losses. The stories of newcomers who managed not to make any of the typical mistakes at the beginning of the trade route can be called anomalous, or at least unlikely, with independent trading from scratch.

Mistakes must be made (not intentionally, of course) because learning from their mistakes is much more effective than on others - this is a characteristic feature of acquiring practical knowledge. The best thing you can do before the start of exchange trading is to minimize the consequences of initial errors in advance. The rest will come with time.

3.Following excitement, emotions and unconfirmed information in decision-making
Admittedly, avoiding this mistake can be difficult, especially if you follow the news from the world of cryptocurrency on Twitter with messages like "ABOUT THE LORD, THE COURSE IS GROWING ALL BUYING" or "So it seems that bitcoin has come to an end, it's better to sell."

Let there be some truth in these reports; it is physically impossible to follow everything at once and, in general, the most patient ones still win.

No one in Telegram chats will spread REAL insiders (private information about the prospects of pricing); moreover, even advertised paid channels often give more erroneous information than true. Rely primarily on your experience and recheck the incoming data. And, if you have a plan of action, thought out in advance, it can be fatal to depart from it by shifting moods.

4. Sales at peak prices
"This is not the maximum, hold and do not sell," advised experienced investors. The point is that you never know how much a particular token will grow.

For example, if you bought bitcoin for $100, you probably experienced an incredible desire to sell it when it jumped to $ 1000. But today you would have regretted it a lot: the ether is already trading above $ 9,000.

For selling cryptocurrency, you need a strategy. Set a goal and strive for it, no matter what. Yes, with the fall of the market it will be incredibly difficult to look at how money flows. But is it worth to panic and sell everything at once? The answer is one: no.

5. Buying cheap coins.
Even before investing funds, it is clear how the currency will develop. If this is not a risky investment, then it is necessary to calculate what the result will be from the investment. A coin can develop, but it can be a fraud.

You can not invest money in currency, just because it is cheap. Many inexperienced users are used to thinking that most of the altcoins with a small price are merely underestimated. This is because there are already many stories of sudden growth in value. But this is not so - not all of the cryptocurrencies are profitable.

 6. Security
This, perhaps, is the most serious mistake possible in the crypto- community today. Hundreds of millions of dollars were lost because people entrusted all their data to a stock exchange that was hacked, or to a service that stopped working.

With the development of technology, scammers and hackers do not stand still and where money is free, without sufficient control, those sin for them not to take. Even if you have a little money now, and even if you did not plan to stay in the trade for a long time, you should carefully approach the security of your data: two-factor authentication, use of individual computers, data encryption - are mandatory.

And, of course, make physical copies of data.

You need to write down all your passwords, secret keys, print them and hide in a safe place. Thus, if something happens to your computer, you can restore everything to another device.

7. FOMO
Fear Of Missing Out. It manifests itself in situations such as the early sale of an asset due to fear of losing profits, buying at the maximum because of the feeling that you are missing something important, or the fear of missing a promising ICO, which is why you are investing in dubious projects. It is the fear of losing the profit most often and leads to the fact that we lose profit.

Getting rid of FOMO is difficult, but you can fight it. To do this, create a set of rules for trading on the stock exchange or choosing a project, as well as limits on the possible allowable losses and profits.

Be above it. Understand: new opportunities in the world of cryptocurrencies appear every day, so relax and let this fear recede.

 The conclusion.
Patience is the key to trading in cryptocurrency. Do not be afraid to miss any deal - the market is so big and developing that there will be enough money for everyone. However, remember that it is easy to make money on the market, but it's hard to keep what you have earned. Do not let greed and greed get over yourself. I will repeat once again: there will always be cryptocurrency, ready to fly like a rocket!

Source: https://coinsbank.com/blog/traders-mistakes-by-beginners

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[hugeblack]

Next time do not write the entire article in the post, but quote parts of it. It is difficult to read posts with long text blocks, they need more coordination so it is better to mention some parts and leave the article URL/s below.
You can use this Formate:

1. Unwillingness to study the situation on your own
2. Putting the money that you can not afford to lose into the trade
>
>
>
7. FOMO

The points I mentioned are excellent but don't look at cryptocurrencies as an easy investment that generates money. "You buy and wait for several months." You must make a plan outlining how to sell, buy, and predict profits so you don't get greedy or lose your money.

[elyorman]

Next time do not write the entire article in the post, but quote parts of it. It is difficult to read posts with long text blocks, they need more coordination so it is better to mention some parts and leave the article URL/s below.
You can use this Formate:

1. Unwillingness to study the situation on your own
2. Putting the money that you can not afford to lose into the trade
>
>
>
7. FOMO

The points I mentioned are excellent but don't look at cryptocurrencies as an easy investment that generates money. "You buy and wait for several months." You must make a plan outlining how to sell, buy, and predict profits so you don't get greedy or lose your money.

I got it. Thank you for your feedback. And yes I never see trading as an easy money but many people do! I myself have pretty enough experience in trading with other financial tools and know that all this takes a great effort.

[Neisi]

Really liked the article!

I am new to trading, so any simple advice helps me a lot.  I know the standards of not being too hasty and looking at it as a long-term investment instead of a get rich quick scheme.  I find the hardest part being studying the situation on my own right now.  There is a such a huge flood of information to take in.  I am trying to study the trends and graphs to see what has been happening on a daily/weekly/monthly basis.  It's all very exciting.

[nelson4lov]

 6. Security
This, perhaps, is the most serious mistake possible in the crypto- community today. Hundreds of millions of dollars were lost because people entrusted all their data to a stock exchange that was hacked, or to a service that stopped working.

Security is one of the most overlooked todo stuffs. Despite the warnings about not storing funds in exchange wallets, They still did it. If I remember correctly, There was a CT thread. Whilst everyone lost, I discovered that majority were beginner traders and they stored all their funds in cryptopia and till date, It's still not sure if it'll work.

7. FOMO

Getting rid of FOMO is difficult, but you can fight it. To do this, create a set of rules for trading on the stock exchange or choosing a project, as well as limits on the possible allowable losses and profits.

FOMO- This one alone has sent many people to their villages (aka liquidation). If not properly handled, It can lead to the downfall of one's trading career. Newbie traders are very prone to this. They discover trends late and jump right on it and then, they end uo catching knifes and fan blades.

[Bitcoin_Arena]

Greed indeed is so bad especially for a day trader. You can easily lose as much as you have made. Most people often look at only the profit side of things. They think that you can make huge profits within hours or days but they forget that with the volatility of the cryptomarket, you can also make HUGE loses with in hours or days.
So risk management is very important for someone doing trading

[elyorman]

Greed indeed is so bad especially for a day trader. You can easily lose as much as you have made. Most people often look at only the profit side of things. They think that you can make huge profits within hours or days but they forget that with the volatility of the cryptomarket, you can also make HUGE loses with in hours or days.
So risk management is very important for someone doing trading

Agree 100%! Although "Risk Management" is one of the most repeated words in trading, 50% of traders (if not more) do not have one and when they make some easy money they are convinced they do not need a risk management at all which is a a huge mistake.

[Wexnident]

1 and 2 are really mistakes that most people underestimate. They refuse to acknowledge facts and believe that they already know everything leading to them losing or bankrupting themselves in just a short few weeks. Well, you not only need patience but also the knowledge and capability to control yourself properly. Letting yourself get swept up by the wave of people whom might have just spread FUD can be quite damaging when you discover it. Walk on your own pace, decide on your own pace, invest in your own pace!

[hd49728]

One of the worst mistakes that newbie traders usually do is don't use stop-loss orders for their tradings. Consequently, I suggest newbie traders to read that topic: One of the Best Weapons in Trading.
Of course, stop-loss orders don't help traders to correct their mistakes by entering at wrong price points, but at least such orders will do help them to avoid serious losses.

[elyorman]

One of the worst mistakes that newbie traders usually do is don't use stop-loss orders for their tradings. Consequently, I suggest newbie traders to read that topic: One of the Best Weapons in Trading.
Of course, stop-loss orders don't help traders to correct their mistakes by entering at wrong price points, but at least such orders will do help them to avoid serious losses.

It's not all about putting stop-loss, it's all about where to put it. And why do many newbies avoid using stop-loss? The answer is clear: They see how the price changing its direction after hitting their stop losses a few times and start regretting to put stop-loss there. The main problem is majority comes into market without even basic knowledge. The worst thing is some of them invest the money they can't effort to lose.

[hd49728]

It's not all about putting stop-loss, it's all about where to put it. And why do many newbies avoid using stop-loss? The answer is clear: They see how the price changing its direction after hitting their stop losses a few times and start regretting to put stop-loss there. The main problem is majority comes into market without even basic knowledge. The worst thing is some of them invest the money they can't effort to lose.

Using stop-loss orders to protect balance and potential serious losses in worst cases, but each person has to think of how to set up their stop-loss orders to avoid stop-loss traps that manipulated by whales on market. It is a very big question and valuable thing to learn. It takes time, experience and subtle observations from each crypto trader.
Stop-loss orders when used appropriately will do always show its good preventive effects for traders.

[Alluro]

The fundamental analysis and technical analysis are the main things in trading. You have to learn about those things before start trading. The next thing is you can invest a small amount as a beginner. Another thing is to keep in touch with what's going on the crypto market every day.

[jossiel]

Selling at high prices is easy. Determining your profit is easy as long as it's profit that you've made out of your capital. This is the greediness starts when you want to get more, when you want to earn more.

And time will come because of that ambition and discontentment, you'll be making a bad move of not selling at good prices when you are already good to take profit. Don't regret selling if you made profit, that's it.

[gentlemand]

The most common mistake beginners make is getting started in the first place. 99% of people do not have the psychological discipline or strength to make a success of it. They are nothing but fodder for the 1% who do.

Whoever framed trading as a breeze that any clueless lump can breeze straight into should have their nipples slit.

[Malvika_sitlani]

• If you have decided to buy some crypto don't believe in all social media news. Explore the market first and then invest in crypto.
• Try to learn from the mistakes which you had done in the past while trading.
• Don't hold maximum funds with you because you don't know when the token will rise and don't sell all your coins at one shot.
• Always calculate how much funds you will receive from your investment.
• Most importantly keep all your wallet details securely.
• Most importantly keep all your wallet details securely.
• Choose the exchange who offers the most trustable and reliable service.
• Remember in this crypto world it is easy to make money but it is hard to keep your money safe so more cautious about this.

[khaled0111]

The biggest mistake a newbie trader can make is thinking that he can become rich in few days because of the big volatility on the market.
Also listening to misleading information and following fruitless strategies.
Many join P&D groups and blindly do what they are asked to do then they discover they were manupilated when they lose everything.

[ivakar]

The biggest mistake a newbie trader can make is thinking that he can become rich in few days because of the big volatility on the market.
Also listening to misleading information and following fruitless strategies.
Many join P&D groups and blindly do what they are asked to do then they discover they were manupilated when they lose everything.

when i was a newbie trader almost every deal I made I closed with a profit! What was that?! a luck? a super profi trader?
no! it was hot market! almost every coin on the market were pumped! so no prob to be a success trader.
but when market began to fall over 70% of my trades brings me losses!
so be careful to begin your traders career on the low market.

[BonfireBob]

Dude good post, I believe FOMO is the greatest threat to all the crypto traders not only begginers.

[Taskford]

The biggest mistake a newbie trader can make is thinking that he can become rich in few days because of the big volatility on the market.
Also listening to misleading information and following fruitless strategies.
Many join P&D groups and blindly do what they are asked to do then they discover they were manupilated when they lose everything.

when i was a newbie trader almost every deal I made I closed with a profit! What was that?! a luck? a super profi trader?
no! it was hot market! almost every coin on the market were pumped! so no prob to be a success trader.
but when market began to fall over 70% of my trades brings me losses!
so be careful to begin your traders career on the low market.

Actually your stance is accurate if you are a short term trader but if you are here to accumulate volume and hold then most provably you will win especially with bitcoins in the long run, but if you cannot take a risk then much truly better if you just do trade and sell your profit to fit so that you will secure your profit figures.

[teosanru]

I think all these points are very generic points meant for merely those who just invest in cryptocurrency and not specifically "trade" because traders generally make couple of big mistake.

One biggest mistake is poor risk management and it's not that old shit of not putting all your eggs in one basket because if you want to be in pro league of traders you need to have pro rules. Risk Management is assessing stop losses and finding risk reward ratios and making every trade in a very calculative manner by assessing maximum loss you are ready to bear and maximum profit you can reap out of that particular trade. Keep the ratios on your side.

Second biggest mistake is not having a system, setup or strategy. Trading isn't just buying coins because some telegram channel told you to or you just found a news about it. It's about creating a charting or fundamental system wherein you buy or sell those coins which are triggered by your system. These systems can be created only with very comprehensive study which you have to do for becoming traders in a prof league.

Third Biggest mistake is not studying your past trade. Sometimes You trade you win, the other times you trade you lose. But one thing is always constant and that is what you have learnt from that trade. Try to maintain trading journals and keep record of all your trades so that you atleast learn from your losing trades.