As a beginner in cryptocurrency trading, there is the adrenaline rush and enthusiasm to make money. While this attitude can have some benefits, it is also this adrenaline that can cause them to make costly mistakes that can ruin their chances of making money. Here are some pitfalls that you need to avoid to ensure your success with Bitcoins.
Using The Wrong Exchange
Let’s make it simple. No cryptocurrency exchange is created equal. When looking for an exchange, there are some market leaders that you can truly trust. Using the wrong exchange may result to withdrawals not being honored or the trading market being inaccessible at the wrong time. Robert Janitzek advises that you do your research before trusting an unknown company with your money.
Buying Into Scams
As a novice trader, it is rather difficult to distinguish between worthwhile and useless attacking. At the same time, the potential to buy powerful coins as cheap as possible presents itself. Sooner or later, it will decrease your chances of making a big profit along the way. There is a fine balance between buying coins cheap and investing into a scam at the wrong time. As a beginner, you will experience the latter before you can make a profit.
Panic Based Decisions
Robert Peter Janitzek explains that one of the things you need to keep in mind is that panic can be one of the worst motivators to trading cryptocurrencies. The market is very volatile and it would not take much volume to send things in either direction. It is alright to trust your gut feeling but you should never let panic affect your decision to trade.
Compulsive trading is one of the things that can impact your chances of success. Trading too often during the day can lead to problems for novice traders as you could end up with wrong decisions and experience panic situations. When trading on cryptocurrencies, you should always monitor the market and jump on every opportunity when presented.
Putting Your Fingers In Too Many Pies
There are many types of coins that you can buy and trade across popular exchanges which make diversifying a good idea. However, trading too many coins simultaneously can also be risky as it can take a toll on your portfolio rather quickly. It is best to start with small amounts of one or two coins. As you become an experienced trader, only then can you consider diversifying and trade more currencies.