Every trader has his own way and his own steps at the beginning of his career.
Crypto trading is a profitable, but very complex profession with many nuances. Newcomers to the cryptocurrency market mostly make mistakes which lead to loss of the deposit. The reason for this is insufficient preparation of debutants, unwillingness to learn, but the desire for quick and easy earnings.
What mistakes do novice crypto-traders make and how to reduce risks?
Throughout the long history of the existence of stock markets, certain trading rules have developed. The same conditions apply to digital currency exchanges, but the still young cryptocurrency market has its own peculiarities. At the beginning of the path for a beginner, the main thing is to try to avoid mistakes, because someone has already done them once, which means you can foresee and avoid blunders.
Intuition and luck or experience and training?
To a novice crypto trader, sometimes it seems that trading digital assets is simple and straightforward - buy at the minimum peak, sell at the maximum peak. But the cryptocurrency market is one of the fastest moving (volatile) markets, and even a seasoned expert sometimes finds it difficult to predict spikes correctly.
Nevertheless, crypto-trading pros are guided by experience and strategy. Of course, intuition plays a significant role, but it is also based on experience and gained knowledge. That's why crypto trading needs to be taught all the time - read the experts' literature and take advantage of their invaluable experience. It is important not only to use technical analysis, but also fundamental analysis, so it is always necessary to follow the news in the world.
And in practice, you can apply your initial knowledge - because demo accounts were invented for beginners.
Haste and ill-considered investments
"You can't put all your eggs in one basket" - it's a very old saying, but it's as if it was specifically invented for trading. If you invest all of your funds in one cryptocurrency, even the most popular one, everything can end badly. The same applies to the first deposit. Invest as much as you can afford to lose.
You can avoid such mistakes by seriously studying the rules of diversification of funds, the basics of risk management and money management.
Emotions
This is perhaps the main key to success - managing your own emotions:
1. overconfidence can easily lead to disaster, but a little self-confidence does not hurt, but it must go hand in hand with caution;
2. greed will cause the loss of the deposit;
3. anger will force to make rash steps;
4. excitement will lead to failure;
5. fear will not allow you to correctly assess the situation;
6. laziness is incompatible with trading on exchanges.
Each crypto trader must develop his own algorithm of actions and his own strategy. But experience does not come immediately, so with the greatest desire it is necessary to study the theory, listen to the experts, watch your emotions, keep safety and many more rules.
A beginner crypto-trader has a long way to success - with ups and downs, but the road is for the doer!
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