Crypto trading is usually just the same as stock market. However, there are just a few differences that one can be able to point out between the two. For instance. The volatility when it comes to cryptocurrency is way high and runs throughout the day.
With crypto trading, you don’t have to worry about the closing hours of the market. As said before, this runs all day thus you can be able to trade at any time of the day. Anyway, with the cost of living going up, people won’t hesitate to find other ways in which they can make ends meet and joining the crypto trading world can provide a way out.
However, even by using greatly designed trading bots like the Bitcoin Code software, people still make mistakes during their early days in trading and that’s what the article will be discussing today.
Since, everyone is always born without any knowledge of something, it is only natural that you are bound to make a couple of mistakes during your first days dealing with something new. For that reason therefore, let us look at some of the mistakes the people always make when starting out on crypto trading.
- Failing to do your own research
You know you will be using your own money, right? Which of course you are not getting any easily. You will be putting yourself at risk if you don’t know or understand the value of the product or even the product itself.
This will force you to depend on someone to help you make your trading decisions. Doing your own research will enable you to know more about the product and what’s happening in the market, making you to be able to make rich decisions depending on the information you have gathered.
Continuous dependency on people is quite dangerous and can lead to you, losing your investments.
- Mining with huge expectations
Well, those who were first to mine Bitcoin and other cryptos are definitely rich by now, good for them. But this should not tempt you to also start mining.
You can, since it one of the ways you can acquire them, but it is not worth it. First, you will need to buy your own mining machine and also pay for the power that you will be using which in this case is way too much.
Again, if you get to do all of these without no proper research on how to go about it, you will be putting yourself in a big trouble.
I don’t think whoever came up with the phrase “patience is a virtue” was wrong and it is something that most people don’t have.
It is quite unfortunate that people nowadays are looking for ways in which they can get some quick money. Well, if you are this kind of guy, then perhaps the crypto world has no place for you.
Whether you are aiming for the short term or the long term profits, you need to have a plan and make sure you stick by it. For you to pull this off, you are definitely going to need some patience.
- Failing to hold their private keys
This is one of the biggest mistakes that a lot of people always make as beginners to the crypto trading business.
If you don’t have any idea of what a private key is, or even if you don’t have a clue regarding the type of crypto wallets that you should be using, you can click here to learn more on that.
Anyway, most traders have lost a lot of money simply because of a compromised exchange or due to a wallet service crushing. This is why it is important to always hold your private keys.
- Finding communities
If you are new to something, it is only natural that you would welcome any help you might get, especially if you are dealing with something a bit technical like the cryptos.
Anyway, if you are just starting out with cryptocurrency, some of the best places to find information, are the online communities. These communities are always available to help people with different issues concerning the crypto market.
All you need to do is join and participate actively before you start asking your own questions.
- Confusion with the crypto wallets
This is something that mostly occurs when a trader is in a hurry to make transactions. A lot of crypto traders have lost a lot of money due to this technical mistake that can simply be avoided.
You need to be extra keen when doing transactions. This means double-checking the other wallet where you are supposed to be sending your funds to. Proceed with the transaction if the wallet matches the token.
Don’t lose your crypto just because of a simple mistake that can easily be avoided, do not send ETH to a BTC wallet or the reverse. Always make sure you use the correct wallet.
- Failing to keep hard copies
Hard copies for who? I get it. Technology has since been improved and there are other ways to store data but not just hard copies. Well, in the crypto world, everything else counts as you never know what could happen the next minute.
All am saying is, it is very much important if you could just find somewhere and write down your important information including the passwords and your private keys, print them out and safely keep them.
This will help you a lot for when your computer crushes, gets compromised or even stolen, you can still be able to restore all your crypto on a new device.
- Using the 2 factor authentication
A lot of instances will arise where you will be forced to make necessary exchanges. But, this still is not enough reason for you not to use the 2 factor authentication if you can.
You can then save your restoration code safely somewhere offline. If you forget to save the restoration code, you will be forced to contact the customer care, which in some cases, you will not be so lucky to find.
So if you are going to use the 2 factor authentication, make sure you also remember to save the restoration code some place where you can easily find it.
- Fear of missing out (FOMO)
You remember that one time back in college or high school when your friends were rushing to do something just because most people are doing it? Well, this is just how FOMO works.
It leads you in to making haste decisions because you have fear that you are going to miss out. You shouldn’t let this get into you and you also need to realize that other opportunities are there eachand every day in the crypto market.
With just enough research you are just going to be fine.
These are just some mistakes that new traders often make as they struggle tofind their way around the crypto market. If you want to be on the same side, please do avoid the. I’m sure you’ve also noticed the emphasis made on how much you should do and depend on your own research. This could really help you out.