Being a newbie in anything can be a scary thing. Although mistakes are the best way to learn, it might be better to make as little as possible. Today, we’re going to talk about some of the biggest mistakes you can make as a newbie.
1. Not doing your own research
This might be the biggest out of all the possible mistakes you can make. With anything you want to get into whether it be learning how to play the guitar or cryptocurrency trading, it is extremely important to do research. Research is important because when faced with decisions like buying and selling, you have to be able to trust yourself. It’s your money and although it helps to seek for advice, you ultimately have to make your own decisions when it comes to your money. Building a knowledge base with research is essential for making cryptocurrency trading as easy and smooth as possible. Go on and watch videos, read books and articles, and scroll through forums to get started on research.
2. Failing to find a community
One of the coolest things about Bitcoin being the catalyst for cryptocurrencies is that there are already several communities that have been established. With these communities, you have the ability to ask questions and ask for trading advice with a tight-knit group of people who are all on the same ride. These communities are good not only for learning as much as you need to know, but also for you to enjoy the ride with other fellow traders.
3. Lack of patience and security
Everyone who’s into cryptocurrency trading knows how much of a roller-coaster it is, and that it’s easy to lose yourself in your emotions. It might be hard, but you have to be prepared for bitcoin’s volatility and most importantly DON’T PANIC. Once you start panicking, you’ll end up panic-buying and/or panic-selling. Being patient doesn’t only apply to the HODL-ing strategy, but it even applies to short term trading. If you’re doing or going to day trade, you need to have a plan for it and stick patiently to that plan.
4. Selling when it’s “high enough”
Similar to number 3, selling when it’s “high enough” shows a sign of fear or panic. Why would you settle for something good when it has the potential to be great? When it comes to trading with bitcoins, it’s important to have a plan with an achievable end-game. With Bitcoin’s volatility, it may be hard to stick completely to your plan, but that’s what having a plan is for: to set a goal for you to achieve.
FOMO, or Fear Of Missing Out, plays a role in Bitcoin investments everywhere, especially after the boom in late 2017. There were a lot of people asking themselves “If only I had known…”. This is something that probably most of us have felt in the past. We need to realize that cryptocurrencies, bring us new opportunities every day. We’re better off doing our own research on the next big thing rather than feeling bad and get hung up on the past.
Have you ever gone through these mistakes before? Did we leave any out? Share it with us in the comment section down below.