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What are the Biggest Mistakes New Investors Make in Cryptos?

It was one week ago I had a meeting with one of my colleagues and we were discussing website and optimization at the end of discussion mentioned we will optimize pages but the content you’re producing is totally a waste of time! because crypto market is not trustworthy and most of us just loosing our money like I lost a lot in the past two years. since the session was about to finish I just declared probably you made some mistakes in trading and lead to your losses. in this post we tried to cover 4 common mistakes in trading and we hope it would be practical for you.

 

Invest more than they can afford to loose

Risk management and Budget management are way more vital than trading strategy.

to tell you my story, one of my best friends sold his car and bought bitcoin at a price of 64,000$!

then at that time crypto winter started so he scared and sold at the level of 32,000$!

Can you believe that in only 3 months he halved his asset!

he sold his bitcoin at the that level because he had to, he needed his money.

So We have to invest money that we do not need. 

F.O.M.O (fear of missing out)

Another point we can mention about that sad story is we should learn how to avoid F.O.M.O in every financial market.

Trading psychology is another essential point that every trader should beware of.

in accordance with the Investopedia website discipline and risk-taking are two of the most critical aspects of trading psychology.

Fear

when traders see the price is close to the stop loss or hear bad news, they start to overreact.

Greed

There is an old quote saying on Wall Street: “pigs get slaughtered.”

“Pig” is an old slag that refers to traders who seems too greedy and forgot their trading strategy.

Most of the traders because of the greed increase the volume of trading position in order to take more profits therefore they forget the risk management rules.

Too short-term Focused

Most profitable time frame for traders and investors are (daily, weekly, and monthly)

on weekly and monthly traders can identify the trend and place their orders.

Not Doing your own research

Buying crypto assets only based on signals from friends or influencers makes your trading too risky. the best thing traders can do is to study the white paper of the crypto project at the first step.

And then they watch the details on the Coinmarketcap website.

and search for more information on google and youtube.

faraz

Hello my name is faraz. since I was 19 years i've been passionate about content writing. We aim to explain everything about crypto currency investing and we try to help you identify scam projects,

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