With the way cryptocurrency has been gaining momentum, it is but natural for people to be lured by its growing popularity. And why not? It does offer a very lucrative deal with profits and privacy. In 2017, Bitcoin went up to $237.62 million, marking a stupendous high.
The crypto world has a lot to offer. The cryptocurrency market goes through significant variance throughout the course of a day. It moves at a very fast pace as compared to that of stock and forex markets. Owing to its volatile nature, you can make extraordinary profits within a very short span of time. Likewise, you may lose in just a few days. It has been observed that 96% of traders lose while 4% win. So, how does 4% make it possible? Let’s dedicate ourselves to studying what mistakes that 4 % of traders to avoid to win.
Enlisted below are all the probable mistakes that are commonly made by noobs or, for that matter, even the most professional ones in this trade. You need to learn the ways of this trade diligently in order to prevent committing mistakes that might jeopardize your investment.
Not staying updated and blindly following others:
Knowledge (gained from research and applied to make strategies) is the key to manifest success in investment. So, always keep yourself well informed. Do not wholly rely or follow whatever is out there on social media platforms without cross-verification.
Follow the news closely and do your homework. This is a fairly new market, so noobs tend to blindly listen to ‘experts’ from Slack, Medium, Twitter, who direct people when to buy or sell.
Often, these high-profile individuals are paid to promote certain coins.
It is good to listen to what others have to say, but it is best to check facts, figures, go through a weekly newsletter, keep a track on investment tides shift on your own, and then trade cryptocurrency. If needed, form investment groups, be invested in the trade, and research well.
Not knowing how to use a variety of market indicators: