📉 Is it normal to sell at a loss or blow up your account every time the market falls? Wake up! The guide to avoiding pitfalls in cryptocurrency trading is here! 🧨
Due to the recent market crash, many people have sold at a loss or blow up their accounts in panic. If you are afraid, you can try ultra-short-term trading to protect yourself. However, before doing ultra-short-term trading, your account should be cleaner than your face! 💡
Is it easy to lose money in cryptocurrency trading? Take a look at these 5 common mistakes and see how many you have made👇
❌ 1. No clear profit target
When the market is rising, do you always think "sell if it rises a little more"? As a result, when the market reverses, the profitable orders are lost!
✅ Solution: Set a clear profit target for each investment, stop profit in stages, and lock in profits! Don't play with the pattern, just make money and leave! 💸
❌ 2. Follow the hype without a plan
Hot currencies are tempting, but the price of chasing high is often being locked in! FOMO (fear of missing out) will only make you buy high and sell low.
✅ Solution: Don't be impulsive! Do your homework before trading, judge whether the project has actual value, and avoid chasing ups and downs. 📉
❌ 3. Ignore risk management
The bull market makes people feel elated, dare to go all-in and leverage, but when the bear market comes, these operations will make you lose all your money in minutes.
✅ Solution: Diversify your investments, and turn part of your funds to low-risk assets such as stablecoins; set stop losses to protect your principal! 🛡️
❌ 4. Overconfidence and blindly increase your positions
The market is rising well, which does not mean that you are the chosen one! Overconfidence will only make you take more risks and eventually hurt more.
✅ Solution: Keep respecting the market, control your positions, and don't magnify risks because of luck. 💔
❌ 5. Chasing 100x coins and ignoring fundamentals
Thinking of getting rich overnight and looking for 100x coins? Be careful of speculating in junk projects, and you will lose all your principal!
✅ Solution: Invest in high-quality projects with strong fundamentals and practical use cases, such as BTC and BNB, and long-term holding is the only way. ⏳
