Some Errors We Make In Trading Crypto

[redwine49]

This is theindset of those who only see crypto trading as a shortcut to success and do not consider its risks. They usually trade by emotions which usually result in losses. They only see profit and gains and disregard the possible amount that they could lose. A proper mindset will be the first thing that we should consider before we trade. Trading is a long process of learning and it's also a long pathway of the the journey and we still have a lot of circumstances to encounter before we reach the target profit that we want.

Before you consider being a trader you have to make sure that you are going into doing what you love. If it’s not something that you love, then you wouldn’t be ready to have patience and dedicate much time that is required to learn it.

A lot of people that I have noticed who do trading today are not doing it because it is something that they love to do, rather they just want to do it because someone have told them that they can make millions of dollars from investing and trading cryptocurrency. That’s why most of them are impatient to learn, they are just chasing the profit and at the end they get frustrated and leave the market with nothing.

Yeah, a lot of people just want to get profit because some people earn income from trading.
Unfortunately for them, they don't even know what they are doing and making some mistake.

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[Rigon]

  There are many mistakes we make in crypto trading, crypto newbies as well as those that's been into crypto for a while often make this same mistake.
However, allowing yourself to make too many mistakes in your cryptocurrency trading journey can end up being a source of discouragement, as we all know, the market does not forgive even an honest mistake, and even the smallest mistakes turn out to be very expensive at times, so it is advisable we always advice ourselves, do a proper research before making important decisions, don't depend solely on market signals, it is true that many have made a fortune through market signal, but also alot more have lost everything through it as well.

Few tips I feel will help us to avoid some of the mistakes we make or are likely to make in our cryptocurrency trading journey are - but not limited to -
 

• Going all in- it a very bad habit, never ever put all your eggs in one basket. ^{it's a popular saying.}
• Crypto is not a get-rich-quick scheme- so seeing it as one is a big error and can lead to a lot of other mistakes and loses.
• Purchasing a coin mainly because it's price is low- many people avoid buying coins like bitcoin, Ethereum, bnb because they feel the price is already too high, so they opt for Shiba inu kind of coins which give them billions of coin for a dollar, only for the developers to abandon the project after few months, and they end up loosing their money- don't do this, it's a very bad habit, and the result of making this kind of mistake can be very expensive most times.
• Being a victim to scam/con artists- Avoid this at all cost, you can achieve this by educating and enlightening yourself, "when you know what they know, or even more than they know, they won't be able deceive you", its that simple.
• Using other people's market signal to trade- doing this saves you alot of time and also makes trading very easy -, but remember, "good things don't come easy, if it does, then it comes a child's play", learn to do your own research, analyze the market, technical and fundamental analysis, learn everything you need to be your own boss in your crypto trading.
• Making use of exchanges with high transaction/withdrawal fees - you don't wanna make all those profits and at the end of the day, loose it all to the exchange due to their exorbitant fees, be it in whatever form "trading fees, withdrawal fees, some exchanges even charge deposit fees", avoid this kind of exchanges, they are the number one joy killers in trading.

The list above is derived solely from my own personal observations and experiences, feel free do add yours.

Of course we make a lot of mistakes on cryptocurrency trading platforms. Some balls happen to us unknowingly due to which we lose all our funds.Before buying or trading any coin, never think about buying coins because of which we lose our funds in various ways.We must think twice before trading.Trading platforms in particular can never be overly greedy Excessive greed often becomes the main reason for us to lose funds.Some of the profits from your invested profits you actually have to aim to give up.There are many more reasons why we can avoid losses from crypto trading.

[justdimin]

Not just newbies, even people who have been around for a very long time can still fall for a scam. It’s good to always educate ourselves and know what’s happening in the market and be aware of such activities. If we educate ourselves properly we would be able to spot fake projects or scammers from afar.

Just like this morning I got a call from my friend and he told me to check my WhatsApp for a screenshot he sent to me. It was a screenshot of someone who has sent him a login details and claiming that there are over $1 million worth of USDT stored in the account and telling him not to tell anyone. I laughed at it when I saw it because I realized immediately that it was a scam and I warned him to stay far away from that and not even reply the message. No one is throwing millions of dollars on the crypto market lol, that’s a full scam. Only greedy people tend to fall for such old tactics.

Have it in mind that no one is giving you free money in the cryptocurrency market, you only get what you worked hard for. Know it and know peace.

[AicecreaME]

Most of the people who recently know cryptocurrency because of their friends who are earning a lot of money in Trading thinks that it's that easy, that's why they do it with haste with mindset that if they invested big or even small, they could multiply it in no time, but that's wrong.

Trading take a lot of time, money, and frustrations before you could attain the level of trading knowledge that gives you mostly profits than losses. It's normal to lose money on trading in exchange of experience or for you to know if it's really for you or not.

[Ziskinberg]

Most of the people who recently know cryptocurrency because of their friends who are earning a lot of money in Trading thinks that it's that easy, that's why they do it with haste with mindset that if they invested big or even small, they could multiply it in no time, but that's wrong.

Trading take a lot of time, money, and frustrations before you could attain the level of trading knowledge that gives you mostly profits than losses. It's normal to lose money on trading in exchange of experience or for you to know if it's really for you or not.

"Crypto is not a get-rich-quick scheme"

That was what it means. Many had thought that trading could make them rich, perhaps, that was a common thing to hear in the news (paid reviews and articulated feedback). People got crazy when it talks like that and they are rushing then and then suffer losses. Since they aren't able to learn and correct their mistakes, I'm not in surprise that many were still suffering the consequences of being greedy.

[sulendra12]

• Purchasing a coin mainly because it's price is low- many people avoid buying coins like bitcoin, Ethereum, bnb because they feel the price is already too high, so they opt for Shiba inu kind of coins which give them billions of coin for a dollar, only for the developers to abandon the project after few months, and they end up loosing their money- don't do this, it's a very bad habit, and the result of making this kind of mistake can be very expensive most times.

That is a pretty bad practice to be honest. But in more in-depth thoughts, people always saying you have to buy cryptocurrency when they are in "dip" price, but no one ever thought you what is the threshold of that "dip" and it could make a misleading advice. Trading is not solely looking on the price but there are some indicators and news that could help you determine which coins to invest next.

• Using other people's market signal to trade- doing this saves you alot of time and also makes trading very easy -, but remember, "good things don't come easy, if it does, then it comes a child's play", learn to do your own research, analyze the market, technical and fundamental analysis, learn everything you need to be your own boss in your crypto trading.

Using signals could be a great idea for beginners but after you are starting to get grasp of trading then that's your turn to do it by yourself, maybe you will get better reward compared to relying on signal.

[barbara44]

I had been badly hurt while trading without a stop loss and trading with high leverage of 10x, with high leverage a drop in the price of the traded amount to a huge loss of my portfolio, I had been able to manage that area by trading with maximum of 5x which is more reasonable with a lower risk

Stop loss or not, it is hurtful of you use leverage for trading. If you are bad in capital allocation and management for trading, and if you use too high leverage, you will be punished by the market in red days.

Bad capital allocation means you use 100% of your capital for leverage trading. Consequently, in red days, in massacre times, and if stop loss order fails to save you because of Cascade effects, you will lose 70% to 80% of your capital. It's terrible if you all in trading with leverage, and after one bad trade, you lose 80% of it. Terrible nightmare certainly!

I do agree that if you are going with leverage route, then you should be insanely well educated in trading and be a veteran. If you are a newbie then you will lose a ton of money. Most newbies end up going all in or a high amount for their leverage trades and they end up losing a few in a row and suddenly they are so down that only a big hail Mary will save them and they do that and lose that too and be gone. That should be the last thing you do, just put like 1% of your money into one trade in leverage because since it has high return, if it is good trade then you will earn enough, if it is bad trade then you will lose only 1% of your account.

[Finestream]

• Crypto is not a get-rich-quick scheme- so seeing it as one is a big error and can lead to a lot of other mistakes and loses.

(.....)

I believe this is a common mistake that people made especially at the beginning of their journey in trading cryptocurrencies.
They really thought it is easy especially when they saw someone who are flexing some profits on social media and for sure that's the time they are being lured to trade cryptocurrencies. This should not be the mindset of people who are starting to trade cryptocurrencies.

People often see trading as a get rich quick scheme but as soon as they start to trade, that's when they realized that trading is broad and complicated, and that making profits in trading is certainly very hard. However, if you become a good trader, and has your own working strategies to take advantage of the market despite of its being unpredictable and very volatile, you will come to find trading that generates a huge income and if you are gaining profits consistently, you will certainly become rich. Trading has always been hard and never been easy, but the rewards await from it are worth the hardwork and sacrifices.

[Hamphser]

• Crypto is not a get-rich-quick scheme- so seeing it as one is a big error and can lead to a lot of other mistakes and loses.

(.....)

I believe this is a common mistake that people made especially at the beginning of their journey in trading cryptocurrencies.
They really thought it is easy especially when they saw someone who are flexing some profits on social media and for sure that's the time they are being lured to trade cryptocurrencies. This should not be the mindset of people who are starting to trade cryptocurrencies.

People often see trading as a get rich quick scheme but as soon as they start to trade, that's when they realized that trading is broad and complicated, and that making profits in trading is certainly very hard. However, if you become a good trader, and has your own working strategies to take advantage of the market despite of its being unpredictable and very volatile, you will come to find trading that generates a huge income and if you are gaining profits consistently, you will certainly become rich. Trading has always been hard and never been easy, but the rewards await from it are worth the hardwork and sacrifices.

|Definitely thats why on the time that they had done on doing trading then this is where they do make out some realizations that this is something that cant really be handled easily considering the prices are

moving way too randomly or not totally unpredictable.If you do see trading as a fast money making scheme then you do really get the right idea and you would definitely able to prove it out once you do step your foot
into this market.

Those things mentioned on OP are common errors or mistakes done by a certain individual which they should have really make out some change of impression and belief but of course
it would really be pertaining  about on real experience.

[doomloop]

in more in-depth thoughts, people always saying you have to buy cryptocurrency when they are in "dip" price, but no one ever thought you what is the threshold of that "dip" and it could make a misleading advice. Trading is not solely looking on the price but there are some indicators and news that could help you determine which coins to invest next.

This has happened many times, I can't explain to you how many times I have heard people bought doge because "what if it reaches 1 dollar one day!!" and even at the peak it didn't reach there, and it was overhyped as hell, even on the greatest possible ever situation it didn't get there.

You know what I am seeing these days? "if shiba is even 10 cents, that would be insane!!" and we all know that it won't be there at all, we are going to see it not even reach 1 cent, but people will invest because the price is very little. They have like zero clue about market cap and only talk about the price of it all and that is why I do not know what to do.

[Issa56]

Most of the people who recently know cryptocurrency because of their friends who are earning a lot of money in Trading thinks that it's that easy, that's why they do it with haste with mindset that if they invested big or even small, they could multiply it in no time, but that's wrong.

Trading take a lot of time, money, and frustrations before you could attain the level of trading knowledge that gives you mostly profits than losses. It's normal to lose money on trading in exchange of experience or for you to know if it's really for you or not.

Cryptocurrency is not really easy the way people think, most people entering cryptocurrency recently always endup losing money because they don't really understand what cryptocurrency trading is all about, they believe is something you just start and you start making money not knowing that their are lot's of risk associated with it, most of them don't really know they can lose money in Cryptocurrency trading, they just believe immediately they buy a coin then they will be in profit instantly, that's why before I introduce any of my friend to trading I always make sure I enlighten them very well first.

[Waddle]

Wow, this thread is really useful. I have made similar mistakes in the past including buying cryptos that were lower in cost hoping they would rise someday, and avoiding popular coins like bitcoin and ethereum.

I think it’s okay to make mistakes because humans learn through their mistakes. And what is a better teacher than losing money. Apart from all the points listed in this thread, there are many other mistakes that we make unknowingly, these are the mistakes that separate us from billionaire traders.

[GeorgeJohn]

Most of the people who recently know cryptocurrency because of their friends who are earning a lot of money in Trading thinks that it's that easy, that's why they do it with haste with mindset that if they invested big or even small, they could multiply it in no time, but that's wrong.

That wrong conception to anyone who has such interior mindset, many of them do lost their money because of not understanding the methodology of investment of cryptocurrency and most especially those that have no idea of trading, making money via trading, is base on your knowledge and also luck attributes to that, but it become more simple when you understand the concept first before venturing into it.

Trading take a lot of time, money, and frustrations before you could attain the level of trading knowledge that gives you mostly profits than losses. It's normal to lose money on trading in exchange of experience or for you to know if it's really for you or not.

that's what some people don't know concerning trading, what trading needs is attention and consistency, before you become perfect trader their most be occurrence of mistakes from your trading, so with the experience of frequent lost, it will make you to be smart via the industry.

[traderethereum]

Many projects that are released on the market don't last long term because they can't provide returns to investors, don't work as intended, don't get support from the public, or even the projects turn into scams after they're released on the market.
In choosing a new project, we must be very careful and observant in analyzing because not all new projects or those that are already on the market can last for a long time.
The toughest test of these projects is when the market is in a bear market mode where all prices are dropping sharply and there are no definite signs of a rise.
Only projects that really have a solid team can survive and you can see that projects that have been on the market for a long time can survive in the market.

[wxa7115]

Great points i think over leveraging (or leveraging in general) deserves a spot there, so many people fall into this trap of trading with money you don't have thinking they can multiply their winnings but end up losing their entire capital.

This is without a doubt a problem, but what happens is that people tend to overestimate the possibilities of a positive outcome and underestimate the possibilities of a negative outcome happening to them.

This is why they see leveraging as a way to reduce the time they need to wait in order to see huge profits not understanding the massive risk they are taking, and regardless of how good a strategy could be if the risk you are taking is consistently high then sooner or later massive losses will eventually come and your capital will suffer as a result of this mistake.

[NewRanger]

Many projects that are released on the market don't last long term because they can't provide returns to investors, don't work as intended, don't get support from the public, or even the projects turn into scams after they're released on the market.
In choosing a new project, we must be very careful and observant in analyzing because not all new projects or those that are already on the market can last for a long time.
The toughest test of these projects is when the market is in a bear market mode where all prices are dropping sharply and there are no definite signs of a rise.
Only projects that really have a solid team can survive and you can see that projects that have been on the market for a long time can survive in the market.

too many scam projects appear in market everyday and unfortunately it become our fault too when pick one of them by didnt observe well about it.  our circumspection and less speculation will not trap us into it.  maybe existing project could be better investment strategy, there are alot good project with lower price if compare to price in several months ago.

[Joshapat]

Many projects that are released on the market don't last long term because they can't provide returns to investors, don't work as intended, don't get support from the public, or even the projects turn into scams after they're released on the market.
In choosing a new project, we must be very careful and observant in analyzing because not all new projects or those that are already on the market can last for a long time.
The toughest test of these projects is when the market is in a bear market mode where all prices are dropping sharply and there are no definite signs of a rise.
Only projects that really have a solid team can survive and you can see that projects that have been on the market for a long time can survive in the market.

too many scam projects appear in market everyday and unfortunately it become our fault too when pick one of them by didnt observe well about it.  our circumspection and less speculation will not trap us into it.  maybe existing project could be better investment strategy, there are alot good project with lower price if compare to price in several months ago.

I think on the contrary, old coins are more suitable for long-term holding because they are safer and have a large marketcap, but if we rely on daily trading then we have to invest in new listed coins, this is because the chances of new coins to skyrocket 10x in a short time are easier than old coins.

[SaveOurSea]

Many projects that are released on the market don't last long term because they can't provide returns to investors, don't work as intended, don't get support from the public, or even the projects turn into scams after they're released on the market.
In choosing a new project, we must be very careful and observant in analyzing because not all new projects or those that are already on the market can last for a long time.
The toughest test of these projects is when the market is in a bear market mode where all prices are dropping sharply and there are no definite signs of a rise.
Only projects that really have a solid team can survive and you can see that projects that have been on the market for a long time can survive in the market.

too many scam projects appear in market everyday and unfortunately it become our fault too when pick one of them by didnt observe well about it.  our circumspection and less speculation will not trap us into it.  maybe existing project could be better investment strategy, there are alot good project with lower price if compare to price in several months ago.

I think on the contrary, old coins are more suitable for long-term holding because they are safer and have a large marketcap, but if we rely on daily trading then we have to invest in new listed coins, this is because the chances of new coins to skyrocket 10x in a short time are easier than old coins.

I totally agree with what you said we can take for example the top coins like Bitcoin, Ethereum and BNB it's better to keep or long term investment,
it is more profitable and safe too so when people invest long term they are not afraid,
when it comes to daily trading, it's also not an easy thing to find the right coin, especially since there are lots of new coins and we have to do some research first

[traderethereum]

Many projects that are released on the market don't last long term because they can't provide returns to investors, don't work as intended, don't get support from the public, or even the projects turn into scams after they're released on the market.
In choosing a new project, we must be very careful and observant in analyzing because not all new projects or those that are already on the market can last for a long time.
The toughest test of these projects is when the market is in a bear market mode where all prices are dropping sharply and there are no definite signs of a rise.
Only projects that really have a solid team can survive and you can see that projects that have been on the market for a long time can survive in the market.

too many scam projects appear in market everyday and unfortunately it become our fault too when pick one of them by didnt observe well about it.  our circumspection and less speculation will not trap us into it.  maybe existing project could be better investment strategy, there are alot good project with lower price if compare to price in several months ago.

Therefore, we must be able to choose and carefully observe projects that are in the early stages of seeking investors.
I tend to choose a project that is already running and has had good development to serve as my investment.
In my opinion, now is a good time to get into the crypto market and buy some coins from those good projects because as you said, the price is now tending to be cheap because it has gone through a sharp decline.
But don't forget that we must have bitcoin as the main investment in addition to owning altcoins.

[Farma]

it is a very good point for traders or people who want to invest. these things are very often done by people who already have experience, or new people, and of course the ones who do the most are new people.
another point is, never follow someone's footsteps in buying assets because they saw them succeed from it. lots of people do that a lot, like when the meme coin hype happened.
However, I also want to emphasize the principle that crypto is not a get-rich-quick scheme. IMO, even when we are not careful in this regard, crypto can backfire on us and deplete our assets in no time. this happens very often to those who just follow the hype. well, the points above are related to each other.