In Cryptocurrency Trades Why Are You Losing Money?

The mistakes I made as a newbie Bitcoin trader cost me a lot of money. There are several common mistakes that newbie and experienced traders alike make when dealing with this highly volatile asset. My career in this field began at a time when the market was still quite young, in 2013. In spite of the fact that I didn't have the knowledge and understanding that I have now, I was certain that this wasn't a passing trend. Resultantly, I started to lose money because the charges of oil didnt decline. Visit bitql.app if you need to invest in cryptocurrencies.

"What's going on with my Bitcoin investment?"

This was the most urgent question I had when I first started investing. Many new crypto investors had the same question after the recent market turmoil. Patience can solve this problem. I quickly sold some of my cryptocurrency holdings at a loss after losing faith in them. HODLing might have been a wiser choice five years ago, but I have no regrets about any of my decisions.

Reasons for losing money in the cryptocurrency

The lack of market knowledge

The common problem is that we frequently depend on "experts" without first understanding the market. Is there a lot of activity in the market? Is there enough potential in your cryptocurrency? You need to know what drives the market in order to know when it's a good time to trade. Then, do your own research.

The inability to do trade

Trading for a year and having no clue how to use candle charts or indicators isn't the only thing that is going on in the market today. To avoid becoming a victim of the herd and trading on the basis of emotions, traders must build their own distinctive trading tactics. Many exchanges give their consumers with trading guidance through seminars and even personal account managers!

Overtrading; excessively big position sizes

Trading based on emotions is a typical occurrence. Traders who are new to the market typically go to tremendous lengths in order to achieve higher gains. When the price drops, they are the first to quit the marketplace and lose all possibility of recouping their losses. To push or crash the market, several exchanges and whales have been known to take use of this tendency. You must pay an exchange charge for your every deal, as an addition of insult to injury. Keep your cool and be patient. In addition, it's a good idea to have a number of back-up plans in place. Never put it all into one investment.

Avoid using stop-loss and profit targets

Stop-loss and take-profit orders are like a car's brakes. The fact that humans are reluctant to accept loss and eager to give up a winning position is correct. However, we can't always be correct and win, particularly in current unpredictable market conditions. A correct stop-loss and take-profit level will allow us to launch another trade at any time.

Investing Without a Plan

Few people are familiar with the intricacies of the Bitcoin market, which is still in its infancy. In addition to the technology, conventional finance relied heavily on investment research. Financial modeling rules are being flouted by speculators in the crypto market. In order to make financial gains, one has to choose the correct Altcoins, and this can be done via both technical and fundamental research. This kind of situation has led to financial crises in the past when investors rushed to buy items and packages that they were unfamiliar with because of the hype. Prior to making an investment in Altcoins, crypto enthusiasts should gather additional information.

There are as many cryptocurrency exchanges as there are cryptocurrencies, and a significant number of them are scams or shitholes. A shoddy exchange will charge you exorbitant costs and will not even inform you what fees you will be charged until after you have paid them. Some exchanges, including well-known ones like Binance, are suspected of manipulating the market or intentionally shutting down their operations. Even worse, hundreds of exchanges shut their doors every year, taking with them the money that users have invested. Furthermore, the trading engines and regulations of certain exchanges are so complicated that it takes traders a long time to even understand how to utilize them.