I’ve been trading in crypto for almost half a year now and to be honest, I still consider myself a newbie who’s trying to get along and try to learn from bits of advice of other traders and my own experience as well. The good thing is I’m an accountancy student which made me not a total fool in terms of investments and trading because I know how these things work or at least I have basic ideas and backgrounds about it if not fully known the whole thing.
The thing is, I don’t have the budgets to start investing or trading in the first place. Thanks to some sites like read.cash, they help me a lot. Every single penny I used in funding my trades comes from these sites, I’m not earning that much tho, what I did is to save the money or bitcoin cash (BCH) then use it in trading.
What is investing?
Investment or investing is the act of resource allocation, generally money, in anticipation of revenue or profit generation. With investing, risk and return are two sides of the same coin; low risk often equals low predicted profits, while larger gains are frequently associated with higher risk.
What is Crypto Trading?
Trading in cryptocurrencies is an act to speculate on price moving using a CFD trading account or to purchase and sell coins on an exchange. If you already have a background in the stock exchange or Forex then it is somehow related or the same as crypto trading only that you are dealing with digitized currencies thus it is called decentralized.
Common mistakes of traders and investors
1. Lack of time to study
· In the crypto-investments market, players that do not spend effort identifying and strategizing their investor profile will lose.
2. Failed to make a plan
· Before making any decisions, you must be strategic and have clear goals. When you don't know where you want to go, the possibilities of financial loss increase. As a result, you must first define your goals and aspirations before entering the crypto game and earning from digital assets. Always remember to bring enough bullets before entering a war and keep in mind that a man who fails to plan, plans to fail said a man by the name of Benjamin Franklin.
3. Fail to diversified the portfolio
· Just like in stock market exchange or Forex, it is highly suggested to diversify your capital, failing to do so will pull all your capital away from your pocket especially in the world of cryptocurrency where everything is decentralized and tokens prices changes at all times. Today its value is more than fine and tomorrow, who knows? Maybe it's like hell so never focus on one type of currency or investment neither trading because everything in crypto is a gamble.
4. Being impatience dealing with volatility
· Because cryptocurrency has no centralized control it is highly volatile just as I explain in number three so, you have to work on your patience in dealing with its movement or else you’ll end up with nothing. Read more here!
5. Lack of knowledge and unwillingness to study
· Some of us are reckless like they will just listen to other people who already know about it and because they tell you that they earn lots of money then you suddenly jump on that world without even studying the basics like how to read the graphs, how does the market work? How can I handle my transactions and so on? Some didn’t even bother to read and study what is blockchain? This recklessness will not only consume your capital but your time as well.
6. Emotions
· Not being able to control your emotion will cause you a lot of loss. Following alarming updates and suggestions of others that affect your decision is not a good characteristic to maintain while dealing with crypto most especially in trading.
in conclusion, the secret to successful crypto trading is patience. Do not be scared to pass up a good offer since the market is so large and expanding that there will be enough money for everyone. However, bear in mind that while it is simple to gain money in the market, it is far more difficult to maintain what you have made. Don't allow greed and greed to get the best of you. Remember not to decide when you are clouded with emotions. You can use the advice of other people but use your judgment from time to time. Not all things applicable to them will apply to you that’s why we are born unique from each other.
Happy trading and if you lose money today, there will always be tomorrow to gain that back maybe twice more. Read and try to learn from your own experience it will help a lot.
In a nutshell, with crypto investments as with any other investment, one needs to know exactly why they are investing in a coin, where its value comes from, and what will drive its value up—or down. If one is guessing, it is not investing. If one is wishful, it is not investing. If one is shocked by price movements, it is also not investing.