The crypto market is increasing on a daily basis and with each day, the market sees the influx of more investors willing to take a chance with trading cryptocurrencies.
Many of these investors go in blindly because they do not have the knowledge to navigate the market.
Here are 5 common mistakes a beginner crypto investor make;
The major reason beginners in crypto investment run at a loss is because they do not carry out their research. The crypto market is too deep and broad for even the biggest players, much less a beginner.
You need to haven the right knowledge and technical know-how to navigate the market. Having the right knowledge and skill set would help you take calculated risks, minimize loss and maximize profit.
Lacking a trading Method
Having a trading method or pattern could help in minimizing losses in the crypto market. This is what the advanced and pro traders know that the beginners don’t.
A popular pattern is not staking more than you could actually gain i.e., calculating the risk reward ratio. Most beginners just play by luck and end up incurring losses that could have been avoided. You don’t need luck; you need a strategy.
Following the bandwagon
We’ve all had that moment where we go with the hype and end up in a ditch. The same thing happens in crypto when you follow the crowd.
As a beginner investor, you’re going to be exposed to different opinions and if you’re not careful you could fall for the wrong hype!
It’s best to observe and be very calculative with your decisions because in the end, it’s your money and other people’s opinion
shouldn’t control what you do.
Going all in
Many beginner investors make this mistake mainly they trade with emotions. Some have the fear of missing out on a current rise and as such, blindly put in all their money and nine out of ten times, it doesn’t end well.
Trading in the crypto market doesn’t requires an incredible amount of composure so as not to make decisions based on emotions.
Not infusing stop loss in trade
One of the many helpful things you should learn to do as a beginner crypto investor is tracking your portfolio and infusing stop loss on trades you already placed.
Stop loss helps minimize losses even when you’re not actively watching the market. So, when the market goes against you, you stop incurring losses at the point you indicated for a stop loss.
Many beginner investors fail to do this and end up losing a chunk of their investment.
Hopefully, you have an idea of the things you should avoid as a beginner crypto investor in the crypto market.
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