4 Crypto Trading Mistakes to Avoid
Crypto trading can be profitable and exciting especially for the beginners. As we can see from a lot of success stories all over the world, it is imperative to fully understand how trading works in order to avoid making mistakes that can result in financial and confidence loss.
Read on to know our 4 caveats of crypto trading.
1. Invest before understanding
With the fast pace of crypto trading, it is not uncommon to see people with stock trading and other investment experience to jump straight into crypto trading without knowing the 101.
If you are interested in trading, we urge you to research as much as possible whilst learning even the technical aspects of crypto in order avoid making mistakes.
A small tip is to always be critical when you listen to ‘expert analysis’ since most of what these people do is to try to sell you something. Remember, it’s your fund, make your own informed decision.
2. Trading with money you can’t to lose
As the prices of major cryptocurrencies going up in 2020, it is becoming more expensive to start investing in crypto even though the nature of crypto is divisible.
As with other investments, never invest money you cannot lose such as your rent money, colleague tuition fees, etc.. This is very important as the crypto markets are highly volatile, price movements can be rapid and steep compared to other investments such as the capital market. However, this is also precisely some people get into crypto trading.
Again, this brings us back to the basics, even if you have got disposable income for crypto investment, we strongly urge you to equip yourself with the knowledge before trading with real money. To learn more about using Bitprive to invest, make sure to visit our FAQ.
3. Emotions over Logic
The saying “sleep on your problem” is essentially a saying asking you to think and don’t act when you are emotional. This is a very relevant concept in crypto investment as cryptocurrencies are in general more volatile than other investments.
The market is open 24/7, there is no downtime. Some traders tell themselves to buy in every dip and HODL until the next boom. Of course this is what everyone wants but more than often, this is not everybody gets.
So, remember to keep your cool 24/7, YOLO, FOMO any of that should not exist in your mind when you are investing.
Don’t let emotions get the better of you, when in doubt take a deep breath and march on!
4. Storing crypto in insecure wallets
As we have mentioned before, one of the first decisions you should make after researching about crypto is to choose a wallet provider to store your crypto. We have already told you not all wallets are created equal and how at Bitprive, we try our very best to keep your crypto secure.
Having a secured and reliable wallet can save you a lot of troubles and provide you with a peace of mind. To know more about our security features, visit our FAQ.
About Bitprive (BPVE)
Bitprive is a Blockchain startup focusing on developing a regulated global cryptocurrency OTC marketplace with 180+ popular payment methods in the world.
Verified users can list buy and sell offers on the Bitprive platform for multi-cryptocurrency trading with a wide range of digital and physical payment methods. On top of providing the platform technology and matching services, we also provide the BitEscrow Network where crypto is held in our Bitprive hot wallet before the payment is confirmed. Once the seller confirms payment, Bitprive releases the crypto from the BitEscrow Network to the buyer’s Bitprive wallet.
At Bitprive, we value security and efficacy.