Although relatively new, bitcoin is becoming more and more popular every single day. For those who are new, bitcoin can sound a little complicated, but when you try it for the first time, you will see that this can bring you a lot of money.
It is essential to be careful and to read a lot. If you are interested in trading your bitcoin, or any other cryptocurrency, cryptogroupsoftware.com is offering you great opportunities. And if a situation is not that good, and bitcoin is going down, there are ten common mistakes that you should try not to make:
1. Trying to catch the exact bottom
When we are talking about the common mistakes, this is one of them for sure. Catching the exact bottom, practically means that you are waiting for the value to go low enough for you, and try to catch the lowest price. That can be very tricky since while you wait, you can miss the best opportunity for trade, because the price can suddenly go up again, just in front of your eyes. The better option is not to wait at the lowest price, but choose the price which is most suitable for you.
2. Starring at the charts all-day
It is not easy to stay calm when your bitcoin worth is going down, but starring at the charts for the whole day is not a solution for sure. Try to go outside and leave your phone at home. Your mental healths is more important than all the bitcoins together.
3. Selling your coins for coins that are going up
As every mistake regarding bitcoins, this one is also very general. People get scared very quickly when their coins are going down or remaining steady for some time. That leads people to sell their coins for the one that is going up very quickly. Since they can fall again very soon, this may be a very wrong decision, so it is better to think twice before the trade.
4. Don’t “follow the herd”
Inexperienced traders can often look blindly at what the others are doing with their coins. Sometimes that can be helpful, but more often, it is a recipe for disaster. It is always better to trust your guts and to do what you think is right. It is better to be wrong by yourself than to listen to anybody else.
5. Don’t use the leverage
Using leverage for bitcoin trade can be very dangerous. It is always better to trade bitcoins for the money you have put aside for that. That means that you should have money to live in the first place, and then for everything else. The leverage can be useful sometimes, but not for buying bitcoins. Before you get money from anybody, you need to be sure that you can pay that money back. And using leverage for bitcoin trade can be quite similar to taking money from someone for gambling.
6. Not having/following a trading journal
When it comes to investing or trading, the important thing is to have a plan, and this is where having a journal plays a significant role. Being accountable for every action you make on the cryptocurrency market is one of the most vital things to do, and by doing so, you will avoid making the same trading mistakes, especially when the price of coins is going down. It is a place where you should put all your trading or investing thoughts, processes, results, which will come handy if a similar situation on the market happens again.
7. Revenge trading
In the trading world, there are some ups and downs, as well as in any other business. One thing to be prepared for is that if things don’t go your way and you miss some good investment, don’t despair, and most surely do not buy or trade for something questionable only because you missed this opportunity, hence the title – revenge trading. There could be a situation when there is some good time to trade, but you misjudged the situation and didn’t go for it.
8. Having unclear patterns
We all have some patterns that we have a tendentious to follow blindly. The crucial thing is to recognize the patterns and change them if they are not good enough. Learn to look at the charts correctly and use clear and relevant indicators. Also, the important thing is not to ignore those relevant indicators, once you learn what they are. Before you decide to sell your bitcoins, be sure that you are looking at the real parameters.
9. Investing more than you can afford
This one is quite significant, and one that can very quickly stress you out. There is a belief that everyone can make loads of money while sitting at home. It is somewhat true, but it doesn’t necessarily mean that you should invest more money than you can afford. Everyone should be quite careful with their money, especially when the value of bitcoins is going down and they rush to buy as much as they can. Yes, there is a big possibility that you can make a lot of cash very quickly, but what if the price doesn’t go up as fast as you think.
10. Dealing with the emotions
We are all humans, and it can be complicated for us to silence our emotions and do things without having them. The same thing is to trading and stocks. You should be aware of your emotions, but don’t let them lead you. It is essential not to be afraid to take a risk, but also be sure what risk you should not take. Bitcoin falling can be very stressful, but don’t let stress make you sell all of them, there is a good possibility that they can be raising again. Put emotions aside and always think twice before you do something.
Mistakes can happen to anyone, no matter if you are a beginner or professional. Try to avoid them as much as you can, but don’t worry if you make one, the only important thing is to try to correct it as soon as possible. Dealing with bitcoin trade can be very stressful, so be cautious and pick your moves carefully. Think before any action, and be sure that that is the right one. Your money depends on you and your efforts, so don’t let anyone tell you what is best.