Crypto trading is undoubtedly the latest buzzword in the current trading scene. Despite the high volatility of the crypto industry, the promise of excellent ROI has been pulling in scores of aspiring traders every month. Are you too contemplating to try your hands in crypto trading? That’s a wise move no doubt but should also be careful about the common mistakes beginner traders tend to commit here. The article below highlights the top mistakes to be wary of as a new crypto trader.
Rushed selection of exchange
Don’t make the mistake of settling with the first-ever exchange you come across online. You have to check a good lot of things here before you sign up with an exchange. Two most important things to check here are the regulation or license of the exchange and its security practices. An unregulated and non-licensed entity is often the primary target of hackers. Take time to research and try to find out a fully licensed exchange which is extremely strict about optimum security measures.
Excessive focus on crypto
The rising popularity of crypto industry is drawing huge attention from aspiring traders worldwide. It’s true that crypto promises incredible returns. But the problem is a lot of traders are throwing everything they have in crypto to cash in on the huge ROI assured by the digital asset industry. However, in doing so, they tend to forget that the crypto market is extremely volatile as well. The prices may go down at any moment, leaving the traders in massive losses. Thus, proceed with limited investments so that even if you face a loss, it would be still manageable. It’s never judicious to focus your entire investment in one particular asset.
Not letting go of shares
It’s true that you have invested in a particular crypto coin in the hope of high returns. But if the coin shows a declining trend, you should be judicious enough to relieve your shares before it’s too late. A lot of amateur traders insist on holding on to a coin even if it has been showing a downward move for some time. They are usually under the hope that the coin will recover soon and they will have their profits. But if the coin is showing no signs of upward move for a prolonged time, and if you still hold on to it- the coin will only be taking you towards failure. Thus, it’s extremely important to stay updated about current market data and follow a strategic and informed decision to avoid unwanted losses.