This article looks into these mistakes.
- Do not go emotional with Crypto Trading
This is a good starting point on the list of cryptocurrency don’ts. Trading, in general, is no better off when done with emotions rather than logic, and the situation is the same for crypto trading. Given that there are high market volatility and value fluctuations, you should not invest your emotions into it; your funds will do.
- Do not trade without a stop-loss order
A stop-loss or stop-loss order is a directive asking to be pulled out of any trade that incurs a loss beyond a certain point. Let’s say, for example, if you invest $150 on a particular trade, you could set your stop-loss order at about $140. This prevents you from suffering heavy losses. You should never trade without a stop loss irrespective of how promising you think the trade is. Remember, the market is volatile.
- Do not trade without a strategy
This is like saving the most important point for the last. No businessperson, experienced or amateur, delves into a business without a clean-cut plan. For every other regular business, the business proposal is an embodiment of all the goals, actions, commitments, and compromises the risk the investor can take for the business.
The narrative is the same for the crypto trader. Right before you invest in cryptocurrency, ensure you have a definite goal. Why exactly do you want to invest in cryptocurrency? State your short-term and long-term objectives, outline your expectations, time the goals, and set clear actions in motion to actualize them.
Doing these from the onset will help you evaluate your investments along the line and analyze your returns, as well as make viable decisions. You should never start without a plan!