To so many people, cryptocurrency is an avenue to make quick money by trading crypto coins like the Ethereum of Bitcoin. An average individual or trader has that mentality and although this is true nevertheless it is also very risky especially when proper precautions are not applied. I remember a few years ago when I joined the crypto space as a trader, what drew me to it was the fact that I had heard so much about how Crypto makes people a millionaire either in a short period or over a long period.
That mentality made me dive into and rush steps without not learning what I needed to learn at the end of the day. It was quite pathetic but well-learned after so many trials and today I will be sharing with us my experience and how it affected me. We should understand that because as we all must know the prices of cryptocurrencies are not stable due to the volatilities attached to the coins. While trading many people make certain errors that will cause them to lose their money. Some out of ignorance, some out of hastening and some out of what they have heard which is also called their perspective about how things worked in the crypto space.
The first error I feel people made which I also did sometimes ago is the rush to start making money. This overtime has been one of the leading factors why so many persons experience losses in their trading activities, when you do not settle down to learn about the crypto market and how it works, you are certain to experience roadblocks on your to becoming a crypto trader. Nothing works without adequate preparation, before rushing into trade, settle down and learn. Like I said, people always think Crypto is a get-rich-quick scheme. As much as it might be possible, it does not work always like that. If you start your trading journey with this mindset, you will notice that you will fail along the Journey.
The second mistake I feel a lot of crypto traders make along the journey of trading is the fact that they have this overconfident Attitude. What do I mean by that? The crypto market is always unpredictable, the fact that you won yesterday doesn't guarantee you will make a profit on the next one, so stay humble continue learning, and be flexible towards adjusting your strategies. This overconfident attitude in traders always makes some Fail in doing the necessary Market Analysis before Trading. When you do not analyze the information before trading, you will eventually end up at a loss. read the news about the coin you want to trade and do a thorough analysis of the market before jumping into the trade.
The third mistake which every Crypto trader makes which I also believe at one point we have also made is falling into the hands of Scams. This is everywhere, if you are not careful on your trading journey you might be tricked into purchasing fake crypto coins in the market. I was once tricked into that and trust me, I lost a huge amount of money. I was pained but well thank God I was surrounded by people who helped me get over the loss. It is therefore paramount that you carry out adequate research before buying any coin no matter how enticing it might look. Carry out your proper research before considering it as an investment choice for you. Not only that of scams but also the negligence to strong security. It is important to note that there are always hackers trying to hack and gain access to your cryptocurrencies, so you must ensure to put strong security measures like two-factor authentication and a strong password in place.
This next mistake which every Crypto trader is guilty of is the fact of Trading by Emotions. I believe many of us are familiar with this and understand the point I am talking about. Sometimes I have come to discover that the determinant for trade for some persons is either fear or greed, these will most times eventually lead to losses. That is why I always ensured that traders should learn to master Trading psychology. Always strive to have a plan and make sure to follow it judiciously no matter the emotions you feel. This trading by emotions has made people Overtrade. Like I said earlier you must know when to stop trading, most people because of greed do not leave the market in time and so they run into losses, to avoid this loss you must ensure you stick to your plan.
The next mistake I would like to discuss is the fact that people are Investing too much. Some persons put too much money into trading especially an amount that they cannot afford to lose, this is a very wrong move as it can land you in debt and also bankrupt, therefore it is important to trade what you can afford to give up. The idea of investing too much has also made people trade coins because of the Hype. People invest in coins most time because they are popular and they hear about them a lot. it is safer to go for coins that have a long-time prospect of offering value than going for coins because of the hype.
As I conclude, always ensure that you do not lose track of your crypto trades, this will help you to access your strengths and weaknesses and also help you to strategize on how to do better. To avoid all these mistakes mentioned, it is very important to be armed with enough information before going into trading. The Crypto space can be productive and can also be risky, avoiding the mistakes mentioned above will give you an edge towards productivity