Why can't you make money on cryptocurrencies?

15 errors that deprive you of profits.

You registered an account on a crypto exchange, opened a wallet, bought the first cryptocurrencies, started trading, following all the news and signals, and ... are you still losing money? Chances are, you are making the same mistakes as all newbies.

You have no knowledge of the fundamental structure of blockchain and cryptocurrency

At first glance it may seem that such knowledge is not required for trading. However, it is not. It is impossible to successfully trade an asset without knowing anything about it. In the case of traditional assets such as precious metals, stocks and currencies, experienced investors conduct a fundamental analysis of their value and are well aware of all the nuances. The same applies to cryptocurrency. You need to know where they come from, how they work and what their story is. First read the popular blogs on this topic, watch the video on YouTube, and then go to the technical blogs. Get ready!

You have no experience of trading on the exchange

After studying the basics and opening an account on the stock exchange, you may be confused with the principles of trading. Therefore it is worth returning to learning again. Learn about order types, order books and technical analysis (a completely unfamiliar concept for most). Understand common abbreviations, ticker symbols and security issues.

You are too light on security.

If you lose the secret key, you will lose all cryptocurrency accumulations. Alas, this is an indisputable fact. Do not keep your digital assets on the exchange, even with two-factor authentication. Transfer them to a cold wallet, the keys to the will accurately control. Hardware and paper wallets are best suited for this.

You ignore the features of different cryptocurrencies

The fundamental features of a particular cryptocurrency, such as storage and transfer of value, depend on its popularity. You can buy an incredible amount of coins at a low price and “hang on” with this investment, since cryptocurrency is not used anywhere and is not in demand. Thus, before investing money in a specific project, evaluate its popularity and prospects.

You neglect altcoins

Bitcoin made cryptocurrencies mainstream. But in recent years, many new projects have appeared with characteristics that exceed the first cryptocurrency. For example, transactions with lightcoins (LTC / USD) are faster than with bitcoins. ETHER (ETH / USD) offers a unique blockchain concept and smart contracts. Do not dwell on Bitcoin, look for new technologies with high potential.

You are experiencing excessive greed.

Position in the black, and you feel like an all-powerful lucky. The profit target has been achieved, but instead of selling an asset, you are pulling time and hoping for continued growth. The next morning, you wake up, and the market collapses. Do not give in to greed!

You are illiterately make a portfolio

Buying only bitcoins or altcoins exposes the investor to unnecessary risk. The portfolio should include both Bitcoin and alternative currencies and be quite diversified.

You make decisions without regard to the overall picture of the market.

When deciding on a deal, always start with a global picture. Do not base your conclusions on short-term charts. Consider the behavior of cryptocurrency for at least seven previous days.

You mistakenly believe that all ICO - scam

With so many ICOs on the market, it’s hard to see which ones are real and deserve a spot on the stock exchanges. Some projects will disappear, others will bring huge profits. Promising startups can be determined by analyzing the goal, scope, market capitalization and aggregate supply.

You give in to panic sales

Suppose you successfully trade, make money, and suddenly a collapse occurs on the cryptocurrency market (something like what happened in January of this year), governments of individual countries impose a ban on trade, the cryptocurrency community is overwhelmed by a wave of negativity. As a result, you sell all your assets at a loss and allow another investor to buy them at an attractive price. You exit the game, and they enter it. Remember: there is nothing wrong with keeping tokens of a project you believe in, even if they are significantly cheaper.

You keep your assets on the exchange

The secret key protects your savings from intruders, so keep it in a safe place and make backup copies. Exchange - it's just a place to exchange cryptocurrency, and not their storage.

You send cryptocurrencies to the wrong address

Yes, this is also a very common mistake. The address of the wallet is difficult to remember due to the large number of characters, so always check it carefully.

You are using excess financial leverage

Do not invest in cryptocurrency more money than you can afford to lose. Otherwise, you risk becoming emotionally dependent on the market and making the wrong decisions. This is a vicious circle. Losses entail emotional tension, followed by loss for tension. Invest in a maximum of 10% of your personal status in a cryptocurrency.

You do not have a trading plan.

After examining the market and conducting your own research, make a trading plan, which will spell out the strategy and the “toolbox” to help analyze and make decisions. Stick it to the end!

You choose all-or-nothing deals

Some new traders tend to open a position on all available funds and close it entirely. An experienced trader enters and exits the transaction gradually. For example, he can sell 10% bitcoins, making a profit in 50%, another 10%, when the profit will be 100%, and so on. In this way, they take profits and get capital for purchases during short-term falls. Inexperienced traders are influenced by greed and sell everything too soon.

Errors are made by all people, the main thing is to learn from them and not to allow repetition.

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