10 Mistakes in Cryptocurrency Trade
Crypto money trading is seen as one of the most money-saving methods today. Investors began to shift their investments towards this direction as they noticed the increase in the money market and ease of use. Last year, cryptocurrency proved that it has grown up since it reached 1 trillion dollars. But unfortunately, many people did not benefit from this gain because of the mistakes they made.
What are the requirements for making the right investment? Don’t you want to make your cryptocurrency investment in correct way this year? The mistakes you need not to make to estimate which currency is worth your investment are:
Sale at low price, buy back at high price
Cryptocurrency markets can change constantly and cryptocurrencies can be easily managed. After all, price fluctuations are regular. Investors constantly save money.
The mistakes of particularly new entrants to the cryptocurrency market are “panic sales”. Especially they can make sudden sales without researching before and when they meet with sharp declines.
Once you have ordered a sale on this sale, you lose the money directly. While it may be wise to sell to reduce losses in some cases, most cryptocurrencies may show bullish days. This is a mistake usually made by newcomers.
Being dependent on a specific cryptocurrency
No cryptocurrency, including Bitcoin, will rise forever. There will be days when you lose as well as the days you earn. Cryptocurrency markets are considered the best approach for achieving long-term gains, but you should not be emotionally attached to any cryptocurrency in order to be able to exchange money quickly.
The best approach would be to keep it in the long run, as Bitcoin’s price drops below $10,000 from $20,000, the highest price ever. However, there are low traders who sell between $6,500 and $10,000.
In addition, the price of cryptocurrency will increase as a result of important statements. By using different cryptocurrencies it can be easy to double or triple your investment in this way. Even though you control the increase and change of the price, be sure that the price increase occurs. Otherwise, you may lose money and feed the whale.
Cheaper and better
If the price of the cryptocurrency is less than $1, it may not mean the best time to invest in the currency. Although we see a 5 cent token rise to 20 dollars in a short time, this is not always the case. It can fall under the half, or you even lose a majority. The important thing is not to buy the money because it is cheap, but to buy by foreseeing what it promises in the future.
Looking for the next big currency to enter the cryptocurrency market
We saw that Bitcoin rose to 20k dollars from 1k last year and it was quite impressive. We can also say that cryptocurrencies such as Ethereum and Litecoin are also providing great gains.
Due to the abundant supply and some other factors, some currencies are arranged according to specific prices, for example Ripple. Investing in such coins and earning more than 2000% is not a good idea in the long run.
As a trader, it is important that you deeply understand each cryptocurrency you trade. This includes price analyses and future promises. This will give you a better idea of how to plan your transactions correctly.
No need to follow current events in the cryptocurrency market
If you want to succeed with cryptocurrency trading, only technical analysis will never be enough. Cryptocurrency users are constantly required to follow current events/developments in this market. Of course, the sector is highly speculative and it is changing to both negative and positive events. For this reason you should follow more than one source. You need to constantly improve your level of knowledge to become a successful cryptocurrency user.
At Tokenspoken we are trying to tell you the most up-to-date and accurate news about cryptocurrency markets and blockchain technologies. You can keep up to date with news and analysis by following us.
Investments you have at the same time with everyone
This is another mistake that will cost for a lot of users. Cryptocurrency traders/investors can sometimes only invest in the same and certain cryptocurrency. You will invest some money to buy your favourite coin, then you can buy up to 50% when you earn money. If the cryptocurrency experiences depreciation, you will not have much loss.
On the other hand, if there is a constant residual after your purchase, you need to order more sales. By doing so, you secure your transactions.
Turnover of each coin drops and there is no need for much research
Cryptocurrency users mostly use telegram groups. Users follow especially crypto traders on social media. Although you do not have a problem with them, it is certainly important to follow and make your research. There are many people who encourage money and market movements on different social media platforms for their earnings. If you listen to these people without investigating and you invest your money directly into these cryptocurrencies, you are likely to lose your investment. Many of these men are paid supporters who unnecessarily prompt a large number of people to buy what they sell.
Correct research is vital before investing in the cryptocurrency market. You should understand the use of a coin, the price movements, and the development phase of this coin.
Investing in everything that has this cryptocurrency
While the other coins are in the green state, the decline of the cryptocurrencies that can be said to be the best can be seen in the same period. Changes in cryptocurrencies can not be predicted directly and can not be guaranteed to survive in long-run.
If you are a long-term investor or just a day trader, it would be wrong to invest all your money in a token. Investing in more than one cryptocurrency is a key to successful cryptocurrency trading.
Not knowing when to sell
Once the cryptocurrency has been received for a reasonable price, the next step should be “What will happen now?” There is not a scoring that the new cryptocurrency get from the market. As the cryptocurrency progresses in the market, it may be possible to lose all the gains made over time. Although you see that prices have risen steadily in the first place, this is in fact an ordinary situation. A good strategy is to sell your currency not at once, but gradually and little by little when you start to make profit.
Not having basic knowledge about technical analysis
Many cryptocurrency traders think that price movements are complicated regarding technical analysis. When market movements and cryptocurrency prices are identified, trades become more successful. But the graphics sometimes fail if we think that the cryptocurrency market does not have any guarantee and is highly speculative and emotionally driven.
However, it is very important for everyone to understand the bases of graphics such as candlestick charts to determine support and resistance levels.
As a basic requirement, you should understand the resistance levels and price ranges that a cryptocurrency suffers or where it is deteriorated. Setting these points on the chart will significantly increase your transaction.
The trend lines are also quite simple, showing that prices are rising at lower and higher levels and pointing to price decline by raising lower at lower levels.
If you would like to share information and opinions about this topic, you can leave a comment.