So you’ve decided to step into the world of cryptocurrency. Before you begin trading, take a look at the top five mistakes novice cryptocurrency traders make.
1. Not having a strategy
You wouldn’t jump out of an airplane without a parachute, would you? The same goes for cryptocurrency trading. Take some time to outline what your target is, and when to sell. Also, consider the possibilities of the trade not going as planned. Be prepared.
2. Being overly confident
It is tempting to put all of your faith and capital into what’s popular right now. However, doing this increases your risk of losing your investment and burning a hole in your wallet.
3. Under-trading
Take a loss in stride, don’t let it completely halt your trading. Analyze your losses and assess where you went wrong to correct your course.
4. Not committing to a timeframe
It is wise to have a timeframe in which you want to achieve ROI. Therefore, establish yourself in the long term, short term, or daily cycles.
5. Buying in on others’ trades
Going with the crowd and following the likes of other traders may seem like the safest strategy, but it could result in losses in the end. When making a trade, make sure that you own it.
Check more of our best tips and techniques on how to choose which cryptocurrency to invest in as well as the crypto trading strategies for 2019!