When starting to trade cryptocurrencies, you will definitely do your best to get high return. But in the process, many crypto traders make mistakes that they are often not aware of and that result in losses.
When you make the decision to dive into cryptocurrency trading, you will definitely face a real risk and trading mistakes cannot be underestimated. No matter how small the mistake you make in crypto trading, it will definitely hurt you.
Here are 5 common mistakes that crypto traders make
-
Using Real Capital or Money
When you are trading for the first time in your life, you should first use a demo account. This aims to minimize the real losses that you will experience, when trading using a real account.
In addition, when you trade using a demo account, you will learn a lot about how the system works. So that you can minimize mistakes in the future when you trade on a real account or use real money or capital.
-
Trading Without Using Stop Loss
Stop Loss is the lowest price limit value that is determined to limit losses. The use of Stop Loss is very important in crypto trading. Because this will minimize the exhaustion of all your capital quickly.
Beginner traders tend to trade based on emotional and psychological vulnerabilities, so that when they experience losses in their trades, they will immediately panic. A trader must be able to accept losses and move on to the next trade.
-
Putting Excessive Trading Risks
In crypto trading, most beginner traders are attracted to the idea of where to get money or wealth in a fast and easy way. How come? Only by choosing Buy or Sell, you have the opportunity to get tens or even hundreds of dollars.
This makes traders do their trades not based on careful consideration and analysis. So, the result actually makes novice traders lose.
-
Lack of Indicators and a Good Trading System
Beginner traders are usually confused about using the right indicators to use in price chart analysis. Because of this, traders often use indicators they can understand only.
There are also those who just join in without adjusting to their needs. Thus, traders do not know how much the percentage of success of this indicator is. In addition, novice traders also don’t have a good trading system.
-
Using Leverage
Leverage has two sides of a coin. Why can it be called that? Because it can increase your profit when your trade is profitable, it can also exacerbate your losses, when your trade is in a losing state.
Leverage should only be used by experienced traders who have been making consistent profits over the years.
In order to avoid mistakes that are commonly made by crypto currency traders, it is best if you study and understand first about crypto trading, before you actually decide to trade crypto. Because this is related to your capital.
Read now: Largest Cryptocurrency Seizure: $1 billion Linked to Silk Road
Follow and join us on Youtube, Instagram, Facebook, and Twitter to be part of the trader community in Asia