What mistakes should you avoid in cryptocurrency trading?

Huynh NguyenJuly 21, 2022

Today, investing and trading in cryptocurrencies like bitcoin is very popular. By learning the best practice to deal with it, you can make millions. But crypto is full of complications. Even if someone learns about the cryptocurrency market properly, they end up making small mistakes that lead them to finish their cryptocurrency trading journey. However, if you are not willing to do so, perhaps you need to be very well aware of what things are required to be done and what you should avoid. In order to avoid trading mistakes, you may use an efficient and secured trading platform like the Crypto Genius trading app.

It would help if you never repeated the mistakes that many people worldwide make because it has resulted in finishing their cryptocurrency trading journey for good. So, today, we will tell you about a few of the most critical mistakes you should never make in your cryptocurrency trading career.

Never start with real money.

The world of cryptocurrency trading is very complicated to understand, even for the expert. Sometimes, the trading would take such drastic events that experts lose their money in the cryptocurrency market. Therefore, you should understand that it can be full of losses and downs. So, if you are willing to become an expert in cryptocurrency trading, make sure to never start with real money. Yes, you may lose a lot if you start trading in cryptocurrencies in the initial stages with real money.

Not using stop losses.

Another crucial aspect to know for trading in crypto is the stop losses. Yes, risk management is a crucial part of the cryptocurrency market, and if you avoid doing it, you will regret it. Yes, the cryptocurrency market can only provide you with a high return if you can do risk analysis and risk management. So, never forget to do the stop-loss strategy.

Paying high brokerage fees

Today, plenty of brokerage firms can help you deal with cryptocurrencies in your initial stages, but you need to be very aware of them. Ensure to understand that they are not always beneficial. If the brokerage firm you are using is charging a lot of money, perhaps it is not the right one for you. It is just making a profit out of your money, which is why you should never be very high brokerage fees.

Not seeing profit or loss percentage.

Whenever you make a profit or loss in the cryptocurrency market, you first need to check the percentage. Yes, checking the percentage will tell you how you could perform or how bad your luck is. In addition, it will provide you with a clear picture of how you should perform in the cryptocurrency market; therefore, checking the profit and losses is an integral part of the trading journey of every player.

Not doing fundamental analysis.

Fundamental analysis is one of the most crucial things you need to do in the cryptocurrency market. Yes, many cryptocurrencies are there today, so you should know about crucial things. A few of these things include what the best coin is and how can you use it in the best way possible. Moreover, you should know about the management team behind your cryptocurrency. Finally, you should also evaluate the economy of the talk you are using because it will be highly acknowledged for you.

Not maintaining your journal.

Having everything written in your journal is something you should do in your cryptocurrency trading journey. Before you start trading in cryptocurrencies, start maintaining your journal because it will help you a lot. It will help you to keep track of your profit and losses, and you will be able to manage the risk better.

Revenge trading

Last but not least, you should always ensure that you never fall for revenge trading. Losses are part of the crypto space. If you are making losses, it does not mean you will be able to make the returning money in the next move. There is a possibility that you are making money because of luck, and you may also be losing money because of market fluctuations. So, never fall for revenge trading because it will be no good for you. You will make even more losses in the market is not in your favor.