Here are the Top 7 mistakes that people usually make while trading crypto! If you don’t make these mistakes you are already better than 99% of all crypto traders. However, even if people know about all of these mistakes that they shouldn’t make, everyone makes these mistakes at least 5 times before actually having internalized them.
The best trader is the trader without any emotions, that is not phased by a 200% increase or a 70% dip and just takes profits or rebuys more.
2)Not buying low and selling high:
This might seem obvious, but the majority of crypto traders simply do the opposite. How do I know? Because people bought in lots of Bitcoin when it was already at $15,000 and they sold lots when it was down at $10,000 and some even sold when it was down at $7,000 making it crash to $5,800.
3)Making all or nothing buys:
They either sell all of their Bitcoins or either buy all of their Bitcoins. An experienced trader only sells 10% of their Bitcoin when they have made 50% gains, another 10% when they have made 100% gains and always sell another 10% of their Bitcoins the higher it goes. That way, they always make profits and also have money to rebuy the dips. Inexperienced traders never sell, because they become too greedy or sell everything too early.
4)Putting all of their eggs in 1 basket:
Don’t only hold 1 coin, hold the best 10 coins you can find and one of them will likely make a 1,000% return and make up for the losses of all the other 9 coins.
5)Putting all their coins on 1 wallet:
Have your coins distributed through exchanges, online wallets, cold wallets and paper wallet, so that if one gets hacked or you lose it, you don’t lose it all!
6)Invest more than they can afford to lose:
If you put more money into crypto than you can afford to lose, you also become much more emotional and make bad trades. It’s a vicious cycle. Instead, only put 10%of your whole net-worth maximum into crypto.
7)Buying Coins That Are Over-Hyped:
Examples are EOS, Tron, Bitcoin, Litecoin. EOS is worse than Elastos, but has a 20x higher market cap, only through the hype and also possibly through artificial pumping by the EOS team. It is extremely centralized with 21 voting nodes and Elastos offers a lot more functionality for DApps and is even more scalable. Tron(TRX) should only be worth a few hundred million but is worth billions, just because Justin Sun was thought to have a partnership with Alibaba even though he only attended the same university as Jack Ma.
I have also covered some less known facts about Bitcoin in my other article, give it a read!
Thanks for Reading!