Guys, you can earn a really lot of money through crypto-trading. It has got a lot more scope than flat currency trading and that is the reason why most of the traders have moved on to crypto-trading.
Crypto-trading if done properly can change your luck overnight and can make you a millionaire.
Ok, let’s keep the craze of people aside. Ever since the origin of cryptocurrency, definitely people are busy trading it and investing in it, but even the very skilled traders commit really huge blunders while crypto-trading. Even the smallest blunders can make you face huge loss.
In this article, I will point out those blunders that you should skip for successful crypto-trading.
Following the rumors blindly
We all have done this in one point in our life when we hear from friends talking out about certain cryptocurrency that will hike up in future. We end of getting enchanted and buy the cryptocurrency. Sometimes we even hear a financial advisor recommending to immediately purchasing a cryptocurrency that will hike up in future and of course who wants to lose such a golden chance? Having said that, you must do a proper homework and research regarding why you should purchase a cryptocurrency and what are it’s chances of growth in future, instead of going by the rumors and purchasing a cryptocurrency blindly.
No stop loss!
Ok, this is the topmost blunder is every new trader’s list. Yes, you heard it right. In order to earn profit they often ignore stop loss instructions.
It so happens that many new traders just hate stop loss because they are stopped trading when the market value of cryptocurrency goes down, only to jump up later onwards, making them feel left out from earning huge profit. In such a case, many traders just step up profit instructions, which may be beneficial for a short period of time, until one day the price never comes up and goes further down making you suffer huge loss.
Believing price cannot go further up or down!
Oversold or overbought are the two most used terms by the traders in the crypto-trading every day. It is always taught that how to trade different trends, that are oversold or overbought market, do your own research and search for entry signals other way round.
Let me tell you that cryptocurrency market can remain oversold for a really long period of time and same goes for the uptrend, there are a number of bitcoin loopholes.
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Trading varieties of cryptocurrencies
One of the major hindrances in any crypto-trader’s success is focusing on trading many cryptocurrency all at once, which is not right. Trading too many cryptocurrencies only confuses you as you try to keep track of all the cryptocurrencies every day. Trust me; it leads to a lot of confusion.
What you should do instead is to specialize in trading any one cryptocurrency.
Using stop loss as risk-free shield in trading
The purpose of stop-loss settings in crypto-trading is to stop trading in case your idea of trading, does not work out and not to shield you and offer a risk-free trading. Apart from that, your stops should be based on the technical analysis and the number of points you are in profit.
Using too much margin
Margin or as it is called leverage is a double edged sword that can both lead to immense profit as well as loss in crypto-trading. Though, many beginners in crypto-trading get stunned by the amount of leverage that they receive in Bitcoin-trading. But, you need to understand that leverage does not work in your favor always. The leverage can work against you, multiplying your losses further in case the market moves in the opposite direction.