Although the crypto money market is much riskier than all other markets, it is a market that is very difficult to predict and analyze. Investors often face serious losses because they act unconsciously in this market, which is difficult to understand.
It is also a known fact that investors who are new to the market, in particular, often make losses by making the same mistakes. In this article, we have compiled for you the mistakes that are made a lot, the things that should not be done and what should be done.
If you are a new investor and have no idea how to invest, we recommend that you first take a look at the link below and then read this article:
Advice and Tutorials for Beginners in Cryptocurrency Investing in
a Plan and Strategy
Before investing in a cryptocurrency, be sure to set yourself a buying and selling goal.
Once you’ve set yourself a buying level by following the levels, set a profit target and stick to those goals. (If you did not get the goods you wanted to buy at the level you wanted, wait for the opportunity to come or consider other crypto coins. Try not to buy above your target place by rushing to buy the goods.)
If the product reaches the profit target you set after you make a purchase, sell it. Because the goods that are held in an aimless way can then decline and all the profit you make can disappear. So always stick to your goal. However, if you want to evaluate the further upward movement of the goods, be sure to put a stop-limit on your profit.*
* To give an example of this situation, if you have set a 10 percent profit target from a coin and this target has been achieved, it is best to sell the goods, but if you do not want to sell against the possibility of further increase, definitely put a stop-limit below your target level. For example, by putting a stop 2 percent below the 10 percent target, you reduce your profit to 8 percent. However, you will not miss a possible bullish rally that may take place from this level. Use Stop-Limit Orders
Keep in mind that any commodity you invest in this market can seriously decline within minutes.
Therefore, use stop-limit orders by following support levels in line with your profit target. For example, if your profit target is 10 percent, you can use a stop-limit order 5 percent below the point you receive.
*Numbers are given as examples; It is best to place the stop-limit order at support levels that will change the trend. Always Focus on Not Losing
The first goal that you should not forget and that you should always focus on is “not to lose”. Keep in mind that not losing is the biggest gain. Don’t Be Emotional
You may be very confident in the goods in your hands and want them to rise, but never invest emotionally. When the trend presents itself as downward, do not continue to hold the goods in your hands, saying that it will be emotional and “it will rise”.
Also, do not get ideas to invest in these coins, especially from people who invest in coins with low volume. Because these people think that they have goods in their hands and will rise, they can give you misleading information. Buy When Goods Fall, Buy When They Rise
In particular, one of the many mistakes made is to invest in a rising product with appetite * FOMO effect. Since investor psychology tends to invest in emerging products, coins that catch a particularly good uptrend can sometimes be appetizing.
This is similar to riding a train going at high speed in direct proportion to how much the coin is rising. If you jump on a moving train, with little probability, you can get on it in a healthy way, but it usually causes you to “break apart”.
For this reason, when there is a decline, try to collect goods especially from support levels and sell goods from resistance levels.
Also act knowing that there will always be new opportunities in the market and never forget: “The opportunity never runs away!”
FOMO (Fear of Losing the Opportunity)Don’t Worry About the Loss You Make from the Profit
For example, if you do not sell the product you have when it rises by 10 percent and sell it when it falls by 5 percent, do not see the 5 percent profit rate as a loss, or do not pay attention if the product continues to rise after you sell.
Because you can never buy a product from the bottom and sell it to the highest. Being upset about losses from profit is one of the main factors that disrupt the investor’s psychology and cause him to make mistakes. Therefore, know how to be happy with the profit you receive. Follow the News
The crypto money market is much more known than before and this awareness continues to increase day by day. As such, since many investors, large and small, have started to invest in the market, the events developing in the global economy directly affect crypto coins.
For example, due to the coronavirus that affected the whole world, BTC experienced a decline to $ 3800 levels. For this reason, follow the economy and crypto money news in the market closely. Observe What Investors Are Thinking in the Market
On social media channels, follow what traders think about the market and the odds of “Long” (bullish) and “Short” orders opened on exchanges. Thus, try to analyze the thoughts of the general investor audience about the market.
Often, prices move in the opposite way to the general view (especially the small investor).*
*This is usually stated because this is the case. It does not always reflect reality. Don’t Trade All Your Money
Do not buy the product you want to buy with all your money at a single price and prefer to buy piece by piece.
For example, if you have a capital of $ 1000, you can buy at a certain level with $ 300 and at another level with $ 300. When you do so, you will have the opportunity to buy the product lower and lower your average, even if it falls below the price you bought.
So always collect the goods you want to buy in a staggered way. Also, always keep a certain amount of money on the sidelines – to be able to evaluate worst-case scenarios. Don’t Get Into a Single Product
By investing all your money in a single product, you are tying the risk of profit and loss to one place. Create a basket of yourself and invest a certain amount in all of them, allocating more money to the coin you trust the most. In this way, you will balance your profit and loss ratios. Don’t Sell in Panic
Crypto coins, as we mentioned before, are very “volatile” products. For this reason, do not go to the way of selling immediately at the slightest fall and avoid selling your goods in a panic by sticking to your stop-limit order.
Sharp declines are often the trap of “whales” (big investors). Do not fall into this trap and be patient. Do Not Invest With Escrow Or Borrowed Money
Do not invest in crypto coins, which already contain many risks, with escrow or borrowed money. Because you need this money in the short term, you will be much more likely to make a mistake with the pressure created by this situation.
Especially if you are a new investor, always invest with amounts that you are willing to lose and you will not be sad when you lose and try to gain experience in the market.
If you have experience in the crypto money markets, you can mention it in the comment section below.
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