In the world of cryptocurrency trading, Binance stands out as one of the largest and most trustworthy exchanges. However, for beginners, it is also a place where mistakes can easily occur and money can be lost. If not careful, you could lose $200 – or even more. Below are common mistakes and how to avoid them.

1. Lack of Knowledge and Research

Many newcomers invest in cryptocurrency without fully understanding how the market works. They often buy coins based on rumors, from social media, or from influencers without researching the project or market conditions. This leads to losses when coin prices plummet or they fall victim to pump-and-dump scams.

Solution:

  • Always research carefully about the currency you plan to invest in.

  • Learn about the technology, applications, and development team behind the project.

2. FOMO (Fear of Missing Out) Psychology

The fear of missing out (FOMO) leads many newcomers to rush into investments when they see prices rising. However, they often buy at the peak and watch prices drop right after.

Solution:

  • Avoid making hasty decisions.

  • Develop a specific investment strategy and stick to it.

  • Don't chase after 'hot' coins without a basis.

3. Ignoring Risk Management

Newcomers often put all their capital into one coin or invest more than they can afford to lose. This lack of diversification and risk management can easily lead to total loss.

Solution:

  • Diversify your investment portfolio.

  • Only invest money that you are willing to lose.

  • Use stop-loss orders to limit losses in each trade.

4. Easy to Fall into Scam Traps

The cryptocurrency market is rife with scams such as fake websites, fake airdrops, and Ponzi schemes. A single wrong click could compromise your Binance account.

Solution:

  • Always check the URL of the website carefully.

  • Enable two-factor authentication (2FA) to secure your account.

  • Never share sensitive information or passwords.

  • Be cautious of offers that are "too good to be true."

5. High Leverage Trading

Binance offers leveraged trading, allowing users to trade with borrowed funds. While leverage can increase profits, it also increases risks. Many newcomers lose their entire margin due to using high leverage without fully understanding how it works.

Solution:

  • If you are a newcomer, avoid leveraged trading until you fully understand the market.

  • Start with a small capital and gradually increase it as you gain more experience.

6. Ignoring Market Analysis

Entering or exiting trades without analyzing the market is one of the main reasons for losses. Many people rely on luck instead of studying market trends, charts, and indicators.

Solution:

  • Learn how to perform technical analysis and fundamental analysis.

  • Use Binance's tools and learning materials to better understand the market.

Conclusion

Losing $200 – or even more – on Binance is not uncommon for newcomers. However, these losses can be avoided if you equip yourself with knowledge, manage risks properly, and maintain discipline in trading. Cryptocurrency is not a quick path to wealth. View it as a long-term investment that requires patience, research, and the right strategy.