Five Horrible Bitcoin Trading Mistakes
We first learned about blockchain in 2008. The source code was released as open-source software. The principles of the technology and operation of the first crypto were also made public. The first BTC transaction was made by American programmer Lazlo Khanesh. He paid 10,000 BTC for two pizzas! By today’s standards, the transaction’s value is over USD 82 million!
The use of BTC has evolved over the years. It has created an era of bitcoin investment or bitcoin trading. Forbes named bitcoin the best investment of 2013. Although Bloomberg named bitcoin one of its worst investments in 2014, the digital asset topped Bloomberg’s currency tables in 2015.
Bitcoin Trading Mistakes
Bitcoin trading is often mental warfare. You have to go against your inclinations or follow your gut. The crypto trading market is one of the volatile market in the world. For both new and experienced traders, making stupid decisions is not far off. So what are the horrible bitcoin trading mistakes you must avoid to make?
1. Not studying the market
This is the easiest trap to fall in. It is largely due to the fear of missing out or FOMO. It manifests itself in an early sale of your asset due to the fear of losing your profits. Other times, it is buying at the maximum because of the popular gut feeling. Relying primarily on your experience is not often accurate. Moreover, it is difficult when you involve shifting moods. Boredom or the need to trade can easily cloud your judgment and cause you to trade when you should not.
2. Over-studying
This is a n00b mistake and even experienced traders fall for that too. Especially during the crypto winter last year. Over-studying might result in the wrong trades.
3. Holding or Over-investing
Especially in an unpredictable market. Holding on to your asset may seem like a smart move. Buying low, holding and selling for a high price may work. After the first few times, it starts to feel natural. That is until you lose most of your investment.
4. Catching the bottom
This is when you monitor a plummet in price, wondering when it will stop. Traders do this in an attempt to enter into a trade at the bottom of a downtrend. It is not easy to catch the exact bottom of a trade. You might as well try to catch a falling knife.
5. Lack of Security
This is the most serious mistake possible in crypto trading. Hundreds of millions of dollars have been lost because traders left their digital assets on an exchange for too long. In the event that someone hacks the exchange or the exchance is subject glitches, you may lose your stake. Even if you have no plan to stay in the trade for a long time, you should carefully approach the security of your digital assets.
Concluding Thoughts
Recently, crypto traders have resorted to automation in order to minimize errors. Bitcoin trading software is now commonplace in the crypto trading industry. It is preset with rules such as timing, price or volume. This tool also analyzes historical data before trading. Trading software is automatic to analyze and find trading opportunities. The software automatically places orders helping the user to profit from the spread.
Asides minimizing horrible trading mistakes, crypto traders use bitcoin trading software for a number of reasons. This includes ease of use and lack of human error. Furthermore, there are several free digital assets trading software out there. A good example is Bitcoin Superstar.
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