Some silly Bitcoin trading mistakes people make occasionally

[CryptoHeadlineNews]

Ever since the evolution of the fascinating digital currency Bitcoin came into existence in 2009, offering users the ability to buy, sell, and trade, many people had made a future whereas some lost there hard earn money to (vice versa), So today I will be listing out some trading mistakes people make occasionally without knowing themselves. So check the list out, to make sure you don't fall victim to it. Thank you.

 

1. Jumping into crypto trading without fully understanding how it works

Most people forget the fact that understanding the fundamentals of anything matters a lot,  which the recent high in the price of bitcoin led lots of people to jump into it with the mindset to get rich quick, who to some ended up in regret when outcome didn't go as planned, as the price of bitcoin falls, leading many to selling there coin because of impatience to wait for another big bull run, which is how the system works, simply because they lack knowledge (Volatility of bitcoin)



2. Investing too much money you can’t afford to lose

Although, bitcoin investment can yield huge promising outcomes when done correctly, but that same investment can also be too risky when you don’t have an idea how to go about it properly. And that's the mistake many people make, by investing so much money that they are not willing to lose in case things don't work as planned, because bitcoin is a highly volatile asset, and its price movements are always unpredictable. So it's always advisable to invest how much you are willing to lose.



3. Making trading decisions based on emotions

Sometimes, letting your emotions control you to making your trade without additional proper analytical insight is another big mistake some traders make. That is, judging a trade with what is known as "FOMO" (Fear of Missing Out). By that I mean, buying a coin when the price goes dip and then HODL these coins waiting until the market price rises. But unfortunately, when the prices decline all of a sudden, they feel frustrated and start to regret it.



4. Storing BTC funds on untrusted crypto wallets

A wallet is where our crypto coins are been  stored, and by virtue of that, our wallets are of foremost importance, but with its high level of crypto scam, this has been another mistake many people fall victim to, where scammers lure away people's hard earn money through phishing a look-alike authentic crypto wallet


So in summary, just as people always say patience is a virtue, and so does it apply to bitcoin trading. So please it's advisable, before going into crypto trading, or any other,  acquire some basic knowledge. Thanks

[pooya87]

digital currency Bitcoin came into existence in 2009,

"Digital" currencies existed before bitcoin. "Crypto" currency started with bitcoin in 2009.

as the price of bitcoin falls, leading many to selling there coin because of impatience

There is nothing wrong with selling bitcoin (if you are a short term traders) as the fall starts. The problem is when people sell their bitcoin when the fall ends. For example this year price went to $60k then fell down to $30k. The problem is with those newbies who sold their bitcoin in $30k range when the fall had already ended.
Another mistake is when they forget to buy back. Even if you made the mistake of selling too late it is still time to fix the mistake and buy back before price goes back up again. We are seeing so many who are now panic buying at $45k after selling at $30k!

buying a coin when the price goes dip and then HODL these coins waiting until the market price rises.

To be clear it only works for bitcoin not just any coin.

[cryptoaddictchie]

So in summary, just as people always say patience is a virtue, and so does it apply to bitcoin trading. So please it's advisable, before going into crypto trading, or any other,  acquire some basic knowledge. Thanks

All the points youve share are all good. These paramaters are all must for beginners.

The first point is the most important one. Everybody who are jumping into trading without necessary basic knowledge will suffer a huge loss. In trading crypto, one  must know the fundamental and basics of trading. Its not an easy money get rich scheme. Yes you could gain massively but if you do it wrongly then the opposite could happened. I know many friends of mine loss here cause of  this situation.

Anyway thanks for this and I hope newbies read this and apply it to their daily learnings.

[CryptopreneurBrainboss]

The most common from my aspect is relying on external bodies like free or paid signal groups for updates and the most disturbing which is getting their trading advice from social media or so called trading expert (influencers) that basically just shill project that paid the most to the followers.

A quick example will be people relying on Elon tweets to invest (although his might not be the case of been paid but definitely a selfish one for his benefits), they just basically wait for him to tweets one of those his memes then they give meaning to it, while others (late to the party) fomo into the market. It's quite funny how vulnerable the community can be.

Learning isn't something this generation is interested in anymore, they just want to make money as quickly as possible which makes them look for shortcut that mostly backfires but just because a small fractions gained others think they can achieve similar luck and keep falling victims.

[BlackHatCoiner]

To be clear it only works for bitcoin not just any coin.

Now, that's a hole! How can you prove that it only works for Bitcoin? I'm a fan of Bitcoin, but I've acknowledged that hodling may work with other cryptocurrencies too. For example, Ethereum. If you bought ETH and hodled them, you'd have increase your earnings by far. What's wrong with altcoins that makes you think they won't stand in the long term?

"Digital" currencies existed before bitcoin. "Crypto" currency started with bitcoin in 2009.

Which digital currencies weren't crypto currencies and which digital currencies existed before Bitcoin?

For example this year price went to $60k then fell down to $30k. The problem is with those newbies who sold their bitcoin in $30k range when the fall had already ended.

The problem is that some people believe they can predict when the fall ends.

[enhu]

To be clear it only works for bitcoin not just any coin.

Now, that's a hole! How can you prove that it only works for Bitcoin? I'm a fan of Bitcoin, but I've acknowledged that hodling may work with other cryptocurrencies too. For example, Ethereum. If you bought ETH and hodled them, you'd have increase your earnings by far. What's wrong with altcoins that makes you think they won't stand in the long term?

"Digital" currencies existed before bitcoin. "Crypto" currency started with bitcoin in 2009.

Which digital currencies weren't crypto currencies and which digital currencies existed before Bitcoin?

For example this year price went to $60k then fell down to $30k. The problem is with those newbies who sold their bitcoin in $30k range when the fall had already ended.

The problem is that some people believe they can predict when the fall ends.

It does work for some tokens but only a handful of them. It's going to be easy for you to hold BTC because you know its price could be more than what it is in another 5 years. I have done some holding for more than 4 years of some token but in the end they disappear. ICONOMI (ICN) for example, which I thought they are there forever, my coins are left unswapped and they won't even consider it. My bad I guess for not noticing the emails they sent.

Newbies selling on $30k is because they are also afraid it will dip further. This I guess is what OP is saying that they can't afford to lose the money they've invested in.
Holding doesn't come  with the idea of "Don't dump the BTC you expect the price to be $100K"

[BlackHatCoiner]

It does work for some tokens but only a handful of them. It's going to be easy for you to hold BTC because you know its price could be more than what it is in another 5 years. I have done some holding for more than 4 years of some token but in the end they disappear. ICONOMI (ICN) for example, which I thought they are there forever, my coins are left unswapped and they won't even consider it.

But, I didn't refer to a token that could disappear at any time. We all know that Ethereum is a project whose development isn't a joke. Obviously, there are useless tokens that disappear due to their pyramid scheme; to make their creators richer. Usually, they're very promising.

Newbies selling on $30k is because they are also afraid it will dip further.

Bravo. So, there shouldn't be people who will later criticize those who were afraid of their investments, since no one can ensure their assumption about the movement of the Bitcoin's price.

[enhu]

It does work for some tokens but only a handful of them. It's going to be easy for you to hold BTC because you know its price could be more than what it is in another 5 years. I have done some holding for more than 4 years of some token but in the end they disappear. ICONOMI (ICN) for example, which I thought they are there forever, my coins are left unswapped and they won't even consider it.

But, I didn't refer to a token that could disappear at any time. We all know that Ethereum is a project whose development isn't a joke. Obviously, there are useless tokens that disappear due to their pyramid scheme; to make their creators richer. Usually, they're very promising.

Newbies selling on $30k is because they are also afraid it will dip further.

Bravo. So, there shouldn't be people who will later criticize those who were afraid of their investments, since no one can ensure their assumption about the movement of the Bitcoin's price.

No. in fact we can't do anything against fud but we could all dump while at its peak. This could be devastating for someone new but they'd understand later the fud is actually created by those guys who are more interested to take the BTC  of the newbies who are scared.

We can add this to the trading mistakes people make occasionally. Like when the fud starts, dump all they got and wait.

[Bttzed03]

~
Now, that's a hole! How can you prove that it only works for Bitcoin? I'm a fan of Bitcoin, but I've acknowledged that hodling may work with other cryptocurrencies too. For example, Ethereum. If you bought ETH and hodled them, you'd have increase your earnings by far. What's wrong with altcoins that makes you think they won't stand in the long term?

Altcoins like ETH follow BTC. I think that's what pooya was referring to when he said it only works for bitcoin. As an experiment to dispute that, try holding ETH and see if the price increases while BTC is not moving or on a downtrend.

~
Which digital currencies weren't crypto currencies and which digital currencies existed before Bitcoin?

how about Paypal? Prior to that, there were smartcards.

[SquirrelJulietGarden]

In trading, people make mistakes repeatedly and multiple times. They don't make it occasionally. There are very few traders who can learn lessons from their losses and correct their mistakes in order to become better traders.

Most of them repeat their mistakes again and again. They are contributors to capital flow on the market from losers to winners.

One of popular mistake is think that they are genius after a few successful trades. Then they lose control of emotion and make bad trading decisions. Lose profit, lose capital and repeat it after a several other successful trades.

[BlackHatCoiner]

No. in fact we can't do anything against fud but we could all dump while at its peak.

You have to understand the difference between a FUD and a price correction. The fact that Bitcoin dropped from 60k to 30k wasn't a FUD...

As an experiment to dispute that, try holding ETH and see if the price increases while BTC is not moving or on a downtrend.

They probably follow BTC, but I was just focusing on the fact that they do it for years. Ethereum for example gave greater returns than Bitcoin did last year, but there's still a very prejudiced opinion about it.

how about Paypal? Prior to that, there were smartcards.

None of them are currencies. They allow you to transact fiat currencies digitally. They essentially debt each other with a currency and represent your IOU in a digital form.

[Squezzi55]

Majority of losses in crypto space has everything to do with people investing the amount they aren't ready to lose, the fact is learning is theory not practical and there is nothing much better than practical, you need to put things in action because you can actually understand how they work so be ready for few losses but with the amount you can afford to lose

[UmerIdrees]

In trading, people make mistakes repeatedly and multiple times. They don't make it occasionally. There are very few traders who can learn lessons from their losses and correct their mistakes in order to become better traders.

Most of them repeat their mistakes again and again. They are contributors to capital flow on the market from losers to winners.

One of popular mistake is think that they are genius after a few successful trades. Then they lose control of emotion and make bad trading decisions. Lose profit, lose capital and repeat it after a several other successful trades.

That's really strange that people do not learn from there mistakes in trading. Most people know these golden rules of trading but when they actually do trades, they forget everything and get emotional and take wrong decisions.

Not only those, who trade in loss repeat the mistakes but also the successful traders also sometimes get emotional and lose all their earnings.

[Kontibruno]

buying a coin when the price goes dip and then HODL these coins waiting until the market price rises.

To be clear it only works for bitcoin not just any coin.

Well not all coins, but then it is not only bitcoin. There are some other coins that have enough trading volume to appreciate with time.

[pooya87]

What's wrong with altcoins that makes you think they won't stand in the long term?

They lack real world utilities.

Which digital currencies weren't crypto currencies and which digital currencies existed before Bitcoin?

"Digital currency is any currency, money, or money-like asset that is primarily managed, stored or exchanged on digital computer systems, especially over the internet. Types of digital currencies include cryptocurrency, virtual currency and central bank digital currency." That's the wikipedia definition.
Basically any currency that has a "digital" form is a digital currency. For example PayPal-USD that started in 1998 is a digital currency.

The problem is that some people believe they can predict when the fall ends.

That's a good point. The thing is that people should focus on the fact that price is below intrinsic value not focus on how much below. For example buying at $39000 was a good option since it was $21000 below intrinsic value even though $29000 was also reached.

Or think of it this way, would anyone care today if they could buy bitcoin at $220? Obviously many dream of it. Back in 2015 it was below intrinsic value but wasn't the absolute bottom since price went as low as $150.

We all know that Ethereum is a project whose development isn't a joke.

It is a joke. They basically took a slightly interesting idea and built a shitcoin on top of it that is meant to only make money for the creators. The only reason why it got hyped up is because it provided an easy to use platform to scam people by creating garbage (aka tokens).
Otherwise the protocol is severely flawed and is filled with weaknesses.

[BlackHatCoiner]

They lack real world utilities.

Which utilities?

"Digital currency is any currency, money, or money-like asset that is primarily managed, stored or exchanged on digital computer systems, especially over the internet. Types of digital currencies include cryptocurrency, virtual currency and central bank digital currency." That's the wikipedia definition.
Basically any currency that has a "digital" form is a digital currency. For example PayPal-USD that started in 1998 is a digital currency.

Okay, but there wasn't any digital currency that wasn't representing a currency and could stand alone before Bitcoin. In other words, there wasn't a digital currency that could operate in a non-IOU way.

That's a good point. The thing is that people should focus on the fact that price is below intrinsic value not focus on how much below. For example buying at $39000 was a good option since it was $21000 below intrinsic value even though $29000 was also reached.

What are you talking about? Bitcoin doesn't have intrinsic value. The fact that there are some models doesn't mean that it is intrinsically valuated. It's just the demanding and the inflation rate which changes during these years that makes its price so fluctuating to say that $220 was undervalued.

It is a joke. They basically took a slightly interesting idea and built a shitcoin on top of it that is meant to only make money for the creators.

I agree that there's lots of immorality behind this project, but there is, indeed, lot of development generally for smart contracts, not just for Ethereum. I also agree that their protocol is weak.

The only reason why it got hyped up is because it provided an easy to use platform to scam people by creating garbage (aka tokens).

It got hyped due to its abilities. The fact that people scam others via it, doesn't make it mean. If you can create malwares and viruses with C#, you can't reprove it, because you can also build useful applications.

[Oshosondy]

3. Making trading decisions based on emotions
Sometimes, letting your emotions control you to making your trade without additional proper analytical insight is another big mistake some traders make. That is, judging a trade with what is known as "FOMO" (Fear of Missing Out). By that I mean, buying a coin when the price goes dip and then HODL these coins waiting until the market price rises. But unfortunately, when the prices decline all of a sudden, they feel frustrated and start to regret it.

This is what is most dangerous in trading, if someone has lost ones, emotion will set, this will result to poor mind set of thinking that will make the trader to make poor choices as a result of not speculating properly again, the trader will only be thinking of the loss and want to gain it back as soon as possible, this results in emotion and trading wrongly, the person will noticed that he trade more and he lose more until even all the money he is trading with are all lost and depression result.

[Luffygroove]

Really a great insight author, thank you and if I may add, there are some other fallacies in trading that people sometimes do, such as :

1. Just doing HODL blindly without don't know when to cut their loss. This statement "You won't lose money if you do not sell" or "you won't lose anything unless you sell" probably would be suitable for those who invest in old and more stable projects like bitcoin for example, but I believe we need to consider more thing when we invest in the newborn project. What if the project fails? what if they scam us? and many other negative what-ifs. Apparently, we need to be brave to say stop whenever it is needed. Anyway, been there done that. I lost money when I don't know how to say stop, the project was given up and all I can do was to let it go and learn from my mistake.

2. The second fallacy is to trust 100% of other people's financial advice whether it's experts or close people around us. Always Do Your Own Research (DYOR)! always. Sometimes we think that other's opinion is the best and when it's not happening, we're angry. This is silly because it has to be our own responsibility, not theirs.

I hope this could be useful additional Infos for all of us. Thank you.