I’ve been trading in crypto since last 2 years and I’ve made a lot of mistakes as a beginner. Though making mistakes is the best way to learn but playing in a financial market can make them costly too which obviously majority of the people can’t afford.
There are some basic mistakes which every new trader should be aware of and try to avoid them in order to keep their portfolio safe from liquidation (losing investment). I’ve listed some of the following.
- Financial market like crypto is an alluring platform for all the new investors and traders which gives a lot of opportunities to make fortunes from it. But if an investor or new trader isn’t aware by the basics of crypto market has 99% chances of losing their investment. So before making an entry in this highly volatile market, new faces should learn the basics.
- In my career of trading, I’ve seen so many people trying to take bank loans for investing in crypto projects. Now that’s a horrible mistake. Every financial market is volatile but crypto is at next level of volatility. You should be expecting the unexpected things. If it can make fortunes then it can also force you to sleep on footpaths. So never ever borrow or take loans because if you lose the capital, you’ll be in debt and won’t be able to pay it back. So always use your own capital because it isn’t your liability to pay it back to someone.
- Other than taking loans, there is a set of people who always try to play the big shots by investing their life savings. Again, it isn’t the thing you’d like to do because you can surely lose everything in a matter of seconds. Newbies are always recommended to invest that portion of their total capital that has no value in their lives. And even if they lose it, they won’t become broke instantly.
- Every field has that specific group of people who think that they are perfect and won’t make any mistakes and so does crypto market. I’m sorry to break it to you but you’re not always right. Again financial market like crypto can do the unexpected things. So even you’ve done proper research and analyzed every important factor influencing the specific project you’re going to invest in, has that capability of proving your analysis and research wrong. Being confident about your actions is good but being over-confident can become costly.
These are the basic mistakes which a new trader needs to avoid and there more mistakes relevant to crypto project’s technical and fundamental analysis which I will share any other time.
