The 8 Biggest Mistakes of Crypto Trading

The text below is an ad article written by Cryptonews.com journalists.

Crypto Currency Trading has made it accessible to many users. The crypto market offers a quick and easy way to enter the multi-billion dollar business world, rather than the complex and complex processes involved in setting up a brokerage account. Analyzing our customers’ transactions with Alfash, we see that many people are buying coins and sending them to crypto exchange accounts, which shows the overall trade.

However, before embarking on your crypt-trading journey, it is important to remember the mistakes that often await merchants in the digital assets world. So let’s see.

Error # 1. Wrong strategy or lack

Many amateur cryptocurrencies are rejected because they do not have a clear and concise plan of action before starting a business. Young Crypto mistakenly believe that investors will understand everything ‘on the road’. However, in practice, they find themselves in a vicious circle that forces them to act hastily, resulting in losses that could have been avoided if the investor had devised a strategic plan before purchasing. The basic premise of any strategy is the basic analysis of different crypto assets in relation to the goals framework. The previous task involved a detailed study of the various crypto assets that could be included in the investment portfolio. The second task is in psychology and life planning in general: the investor needs to know the level of risk and the distance of the business horizon. He needs to understand how long he wants to buy the property, the expected return rate and what losses, in the event of a market crash, he is ready to persevere without fear. Without these simple but essential steps, an investor would be in danger of becoming an easy target for more experienced trading sharks, selling their assets to others during market growth, and buying assets during the fall.

Mistake # 2 ፡ Excessive desire

Cryptographic startup investors look like El Dorado, in a few months one can see a lot of returns and multiply investments without much effort. This vision has led to many success stories of investors who have invested thousands of x’s or thousands of dollars on a new project and made hundreds of thousands of profits in six in the course of some altcoin growth. Month or year. These stories may be true, but millions of investors will say nothing because they once made the wrong bet and incurred huge losses. The ‘big wins’ we read in the news are rare even among professional investors. For starters, this is a relatively unknown goal. Newcomers should note that not only do they not already know the assets in the stock exchange, but have already invested in traditional assets, but have no experience in the crypto market, which is its own idiom.

When designing a strategy, it is important to avoid excessive desires and hat plans. A small but stable increase in the price of an investment portfolio is better than an external opportunity to hit the jackpot with the risk of losing all your investment.

Error # 3 ፡ correctly select the size of the space

The amount of interest received directly depends on the size of the investment. And this is sometimes a cruel joke on the part of investors. Greed is a good motivation, but it is also a bad advice. It does not allow critical analysis to evaluate the prospects of a particular investment or marketplace.

The opposite is true when the bets are very small and this is successful but it does not change the value of the portfolio or the size of the transaction. Fear, like greed, is a bad counselor.

Bidders’ task is to determine the exact amount of space (usually 1% to 5% of transaction value). Taking into account factors such as business activity can help determine the exact size of the space. If a trader takes a small amount of time to trade, for example, once or twice a week, the volume of the transaction should be within the limits set above. If a trader actively trades on the stock exchange and trades a lot during the day, it is reasonable to reduce the size of the stock to a lower level.

Finally, when determining the size of a business, a trader should realize that the amount of money he has invested in a particular asset should be large enough to make a difference in his trading account, but in the event of dire consequences. From a false prediction.

Mistake 4. Lack of self-control

The crypto market is highly volatile, and the main reasons for such volatility are unscrupulous bidders, who are surprisingly vulnerable to asset purchasing and selling. The cryptocurrency market is dominated by FOMO (The Fear Of Missing Out) and FUD (Fear, Incertainty and Doubt), which means that small talk can trigger sales like a crash. Bidders should work with information, at least check the facts, make sure the source is safe and do not succumb to labor demands. If not here’s a new product just for you!

Mistake # 5 ፡ Lack of diversity

Bitcoin is the largest and most reliable cryptocurrency on the market, which despite its many failures, cryptocurrencies and other shocks has proved its worth in the market. But betting on a cryptocurrency is probably the most embarrassing strategy an investor can choose for himself. Of course, Bitcoin, like the most stable cryptocurrency, should occupy a place in the future in any investment portfolio, but the existence of other digital assets, in contrast to Bitcoin, is likely to show high returns, not to be overlooked.

Accurate duplication of investments in crypto assets is not an easy task. The higher the scope of the plan and the lower the risk, the more weight Bitcoin should have in its investment portfolio. If an investor is willing to take the opportunity to see a significant return in six months or a year, at the same time he should pay more attention to altcoins without overcoming optimism. The ‘golden mean’ is considered an investment portfolio, half of which consists of bitcoin, about 20% is distributed between ETH and the remaining 30% of other promising coins, each with a share of no more than 5%. This alignment of forces will help to distribute risks evenly and minimize potential damage due to the overall growth of other components in the portfolio.

Error # 6. Ignorance of marketing tools

The crypto market is young, but it is already very advanced in terms of various trading tools – DeFi, futures and options, contracts, margin trading and so on. Many are involved in accidents, which they fear could be a participant. But it is certainly useless to completely ignore such tools. They allow you to increase your profitability. Indeed, with the right variability of such tools, the impact of investment will always be bright.

Trading in a single cryptocurrency deprives the trader of great opportunities to increase the value of his account. During the Bitcoin downturn, for example, crypto currencies, which are popular among cryptocurrencies, may still generate significant profits due to the increase in transactions that are not listed on the stock exchange. Contracts.

Error # 7. Cyber ​​security negligence

Crypto currencies have returned control of their assets to their owners. But with this control comes a big responsibility. If users are not so worried about keeping their genealogy secret or checking the recipient’s address before sending money, alas, many people are negligent about cyber security on crypto exchanges. However, the problem is not only with the negligence of the users but also with the security breaches seen in the central trading platforms. Here and there you will find preconditions that pose problems for consumer protection. One of the most recent profiles was the theft of NFTs and Crypto from the MetaMask wallet via iCloud, data was changed, and supported by the MetaMask mobile app without any encryption.

It is important for users to carefully study the security of any selected business platform, use simple methods such as 2-factor authentication and, if possible, store them away from active business accounts in their wallets. Here, I would like to make it clear that although crypto wallets are slightly less sensitive to hardware wallets, one cannot call them cold wallets. There are already sufficient requirements for hacking hardware bags. You will always find out about malware stories, pre-installed vendors in your hardware wallet, and known vulnerabilities in public software.

Error # 8. Impatience

The first steps in the crypto market are bound to fall. It is impossible to gain experience without marketing. Therefore, the trader should immediately notice that he cannot see the Fast X at first. In some cases, losses are inevitable. Failures undermine self-confidence and the desire to move forward. But Winston Churchill once said, “Success is moving from failure to failure.” “Make a mistake,” wrote Alexander the Elder, a well-known psychologist and author of “Come to My Trading Room.”

On Alfacash StoreUsers can buy and sell more than 19 secret currencies in Euros. This is the fastest and safest way to trade digital currencies in the EU, and we are constantly improving our services. The platform provides SEPA transfers for cryptocurrencies with a completely secure, controlled and automated process with cryptocurrencies. And while the platform may not be as popular as Binance and likes, it supports most popular cryptocurrencies such as Bitcoin, Ethereum, Ripple, USDC, USDT, DOGE and so on. Financial services for everyone, regardless of location.

Visit to see their benefits and more great surprises for yourself Alfacash Store right now!

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