10 Mistakes Every New Crypto Trader Must Avoid

I was excited when I first got to hear of cryptocurrency. I also heard people got millions of dollars simply by purchasing an individual coin at the right moment and selling it off in the future. The informant said that in the case I joined, I would get to be rich within a very short time. I did not want to be left out. That is why I got into it uninformed. I visited a crypto app and opened an account there, purchased a couple of coins and was waiting to get rich. However, this did not turn out as I expected.

On one occasion the bad-penny that I purchased fell awry. well i was scared. I sold it with a huge loss. Then I purchased a different coin that somebody is chatting about on Twitter. The other one crashed. A couple of weeks later, I lost over half my money. I felt depressed and puzzled. This is when I learned that I made numerous mistakes. I chose to pause, breathe and learn. I hope that people will not repeat my mistakes. This is the reason why I am making this out of my heart.

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The first thing I did wrong was that I did not have a proper idea of what I was purchasing. I only got to know that one of the coins was moving and I hurried to purchase it. I did not understand the purpose of the project, its developer, and what issues it was aimed at addressing. I found out later that in crypto a purchase is not simply made out of hype. There is a need to know how the coin will be used and its future. There are a lot of coins that are a scam. They are nice on the outside and empty on the inside.

The desire to become rich under a very short time period was another major error that I made. I had an idea that crypto was a shortcut. I did not do it with a plan or a strategy. I would only look at one of the coins trending and invest my money in it. This is termed as FOMO- fear of missing out. I later watched that real traders do not behave like that. They wait, they read charts, they think about when to enter and get out. I now endeavour to be patient. I do not scavenge over coins any more. I allowed the chance to happen to me.

Moreover, I used to exchange all my money. At one point I paid my full salary to purchase a coin. In that month, I was not able to afford food or transportation. I needed to borrow funds to start living. it was painful. What I came to know later was something known as risk management. It implies that you do not invest all your money in a single transaction. Not to mention money you cannot afford to lose. I am now only trading a small proportion of my money and the other part is safe.

Having started, I did not know how to use stop-loss. It would have rescued me numerous times. Stop-loss can be compared to a small safety net that trims your loss when a trade does not go as you had expected. Your entire money may get lost in no time without it. Whenever I make a trade now I apply stop-loss. It safe guards me.

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The other fault possessed by me was listening to too many people. I stalked random individuals on YouTube, Telegram, Twitter, and even WhatsApp. Each of the folks was to pump one coin. They would go “Buy this now! It is headed the moon:” and I would purchase without conscious thought. However, they would pump it and sell it off leaving me with the loss. I discovered later to know that most of these individuals are mere marketers. They are not bothered whether you win or lose. I ceased to keep up the noise. I began to follow some of the credible traders that teach evidence and proving analysis.

I attempted to change a large amount of coins in transactions. I fancied that, when I put in 5 or 6 coins, one would go up. However, on the contrary, I was not able to concentrate. I was not tracking my trades. Others would crash and I would not know in time. I swap fewer coins nowadays. Tap in two or three at a time and attach fasteners to follow. In this manner, I will be able to observe them closely in order to be in a better position to make the right decisions.

I was a gambling mind also, permit me not to lie. At other times I would simply be fortunate. I would say, I put all my money in this coin today. Such an attitude is extremely harmful. Crypto is not a gambling. It is not a lotto. It is a market that has actual patterns, actual rules and you need to think like a pro. After I changed my mindset instead of seeing problems, I began to see progress. I also sleep well knowing that I know what I am doing and the fact that I do not make millions overnight is not important.

The problem of security is also not taken into consideration by many new traders. I also did. I made a vulnerable password. I have saved my keys in my email. One day my wallet was hacked. The robbed whatever was there. I was crying that day. It is as though somebody relieved me of my money along the highway. This was the time I discovered using two-factor authentication, cold wallets, and maintaining passwords. I do not put my crypto security lightly anymore. I do not store sensitive information any way. I keep offline copy and I use trusted apps only.

The other aspect that I did not do in the beginning was record keeping. I would simply buy and sell. I did not even remember what I had started with later. What I gained or lost I did not know. It is not good. Now, a small diary is used by me. I make notes of each trade including why I took it, how it played out and lessons learned. It assists me to notice trends and become a better person.

Lastly, I did not find time to study. I simply took a plunge. I did not want to spend time sitting and learning charts, candlesticks, volume, or technical analysis but I wanted to earn hard cash quickly. I would later attend a class on trading and I found out that I was trading blind. I have changed and now I study daily. I read articles, watch videos and pose questions. I am attempting to be a better trader on a daily basis.

Coming to the reflection now, I am grateful to God that I did not just pack up my bag. Had I done it, I would not have known all these things. I still commit minor errors, however now I do not repeat major ones. I have acquired a lesson of patience. I have got to be disciplined. I have been taught how to safeguard my finances and increase them gradually.

Are you new to crypto trading? Then I want you to listen to me well. Take your own time. Don’t rush. Never be led by greediness. Study and then course. Safe guard your money. Think long-term. Never trade hypes. and never quit learning. Crypto is not magic. It can be described as a skill. And just as in every talent you need to train and be perfect.

Today, I am more in control during my trading. I do not have to be a wealthy person but I am marching peacefully. My knowledge about the game is better now. And I would like you to do, too. And go your way, and do not make the mistakes I do, And many and tears shall then be duly spared.