It seems like not even a day can pass by without hearing or reading any news regarding cryptocurrencies, the latest changes, biggest upsets, and new value highs. Now, even though we got used to that, and even though we can find most of the important information about digital money and blockchain technology online, somehow, many people are still hesitant to dip their toes into the crypto market pool. Yes, certain skepticism is always welcomed and appreciated, as it leads to being more careful, but entirely avoiding and delaying to invest in something that, as every research has shown, will be something that will mark our future, can end up being the biggest mistake in your lives. The biggest reason why people are still hesitant to invest in cryptos is mostly about their volatility, and yes, this represents the biggest challenge, but even that can be easily dealt with when you start doing research and keep up with the latest crypto news.
What to expect?
From the first moment you create your digital wallet to store your cryptos, you need to make thoroughly thought decisions and carefully pick in which coins to invest. Trading cryptos may seem like the most efficient way to earn big, but, understandably, it also carries certain, and in some situations, huge risks. So, in order to avoid losing money, it’s good to know what to look for and whether there are some trading pitfalls that you need to avoid. There are thousands of coins to invest in trade, and there are trading risks for each one of them, but let’s focus today on the most popular and most profitable crypto of them all, Bitcoin.
1. Trying to trade without knowing anything about the market
We have all heard the old saying how practice makes it perfect, and even though this is true, even practicing without knowing certain tricks and basics will be for nothing. One of the most common mistakes that every new trader makes is entering the crypto world and market without any knowledge about trading. It is not easy to trade Bitcoin, and there are a lot of things to learn before jumping into these waters, so if you want to trade, make sure to learn the basics from the beginning and improve the knowledge all the time. Start from the very beginning so that you can understand and get a better insight into why Bitcoin became a thing in the first place. It is all about constant learning because this market is changing all the time, hence the volatility, and it is impossible to learn everything, so it is crucial to be informed all the time. Having the right information can make a difference between losing and earning, and because of that, you need to find them in the right place from reliable sources. So, make sure to keep up with the latest flow of crypto news by checking www.world-today-news.com, for example.
2. Choosing the wrong platform
Trading is all about choosing the right trustworthy platform because picking the insecure one can cause a lot of problems and cost you a lot of money. Cryptocurrencies are becoming more and more popular every day, and Bitcoin is one of the most popular ones, so scam websites for trading are on the rise. Because of that, it is crucial to be careful when choosing the one you want to use, and start trading only when you are sure that it is the best one possible to find. One of the best ways to find the most reliable platform is to read the reviews, and see other people’s experiences, or ask a friend or family member for a recommendation. Once you find a trustworthy platform, you are ready to enter the crypto market and try to earn some money by trading Bitcoin. Every decision in the crypto world is important, so don’t make any without thinking twice about it.
3. Don’t follow the herd
Now, this expression is not a new one, but many people still tend to make decisions just because of actions made by others. We don’t need to mention how harmful this can be. The largest difference between experienced traders and newbies is that experienced ones know when to withdraw and stop, and beginners usually stay in the trade long after it’s necessary and actually profitable.
4. Trading without a plan
Trading should be considered like any other job, and it is impossible to do it properly without having a plan. It is crucial to make a plan before the beginning and be prepared to change it if it is necessary because the crypto market is changing all the time, and sometimes it is impossible to stick to the first plan we made. The main things to set are entry and exit points, which means we need to set the price at which we want to buy the Bitcoin and the final price at which we want to sell it to earn some profit. What we wish and want can sometimes be different from the options we actually have, but we need to understand that not having a plan is even worse than changing it halfway through. Furthermore, most people tend to trade emotionally and don’t know when to stop, so even though it may seem like fun, don’t make trading decisions just because you want to get that thrill.
5. Forgetting the password
Although it is pretty obvious, many people make this big mistake, and because of that, we need to mention it. Stats have shown that a large percent of crypto traders forget their password or private key and end up losing their money. Of course, there are ways to recover your account, but why go through the unnecessary and time-consuming process when you can at least write it down somewhere safe so that you will never forget it. Forgetting the password for the wallet or the trading platform we use is probably the worse mistake we can make because, in that way, we lose access to our Bitcoin, and we cannot do anything with it. Creating a simple password is not a good solution because although it is easy to remember, it is also easy to hack, so we can again lose access to our funds. The password needs to be complex, but remembering it is a must.