Thanks for the info in the OP and all the thread, I still do not make trading so all these tips help me a lot to learn not to make the basic mistakes.
Sooner or later I will make mistakes but if I can avoid the tipycal ones, it would be better. Very useful thread.
Topic: 5 most common mistakes of Crypto Traders (and how to avoid them) (Read 264 times)
If you are going to try yourself in cryptocurrency trading, you should keep in mind, that without the understanding of essential rules and principles you will only lose your money (just like most of beginners do). For not to get disappointed, avoid these common mistakes, which are being made by most of newbies.
Mistake 1: buying on peak
There are two general feelings moving people on crypto market: fear and greed. If the coin has already reached its heights, you can suffer the feeling of missed opportunity (so-called FOMO). Greed and wish to get at least small part of the profit make unexperienced players to buy currency at the moment when experienced traders are already thinking of selling it.
How to avoid this situation?
Don’t buy any coin is there is not objective reason for it to continue the growth, and when several prolonged green candles have already taken place (have a look at the chart below).
Pay attention to resistance levels, and never buy currency when its price approach them. If you want to buy certain coin, wait until it breaks the resistance level.
Always check trading volumes of any currency you want to invest in.
Mistake 2: selling a currency after its lost of a market value
That’s a typical mistake made by every trader at least once – but in this case the main feeling moving the trader is fear to lose. Panic among the community and negative news only aggravate the situation. Suffering mental pressure, unexperienced trader sells all his assets in hope to keep at least small part of his investments. What happens later? … The panic seller finds out, that the rate has stabilized and that the lack of patience has led him to significant financial losses. You can view this situation on a graph below.
How to avoid this situation?
Fix your losses by setting Stop Loss order right after purchasing. If the positive forecast happens to be wrong, you will lose only a small part of your assets (not more than 10%).
Don’t sell your currencies if there are not objective reasons for the total crash down. If you have already lost a lot – just hold it till the rate drops to its bottom and wait for a turnaround.
Remember: experienced traders are waiting for you to sell at a loss – that will allow them to by currencies for cheap.
Mistake 3: exiting the position because of the small correction.
The market is cyclical. The growth can’t be eternal as there will be always people who want to sell. If the coin sinks for a little bit or remains flat, that doesn’t mean that the trend is going to turn into descending one, and that everyone are going to sell. Before buying a currency, you should consider the investment horizon. If you’ve provided careful analyze and selected a reliable coin for long-term investments, you shouldn’t care about any price corrections.
How to avoid this situation?
Always follow the news concerning the currency you’ve invested in.
Set a take-profit order on a mark a little bit under resistance levels.
Close the position parts by parts.
Mistake 4: investing into currencies which don’t have real value
This mistake is the result of a greed. Unexperienced players, who can’t detect pumps, purchase coins which were artificially overrated whith no having any significant value which makes it attractive for mid- and long-term investments.
How to avoid this situation?
Always analyze any project you want to invest in. Evaluate its importance, developers team, trading volumes, news background.
Never invest in pumps – especially is pump has already happened.
Never invest in suspicious coins, which are not listed on authoritative resources like CoinMarketCap or Investing.com.
Purchase coins with daily trading volumes no lower than $1 million and market cap above $10 millions.
Invest only in coins listed on major crypto exchanges.
Mistake 5: the lack of strategy
Most of beginners don’t follow any certain trading strategy; they don’t diversify their risk and often invest in scam projects.
How to avoid this situation?
Don’t invest more than you are ready to lose.
Don’t invest in one currency; choose several projects.
Don’t invest in ICO promising suspiciously huge profit.
And the last one recommendation. Before taking a decision always consider all the factors which can affect coin’s price in the future. That can be:
1)Fundamental analysis
2)Technical analysis
3) Statements of developers
4)Changings in developer’s team
5)Trading volume and current situation on the market
6)Public opinion (forums, social media, Github etc.).
Invest safely with CryptoCurrencyUnivers!
Hope this all help for Crypto currency investors
Mistake 1: buying on peak
There are two general feelings moving people on crypto market: fear and greed. If the coin has already reached its heights, you can suffer the feeling of missed opportunity (so-called FOMO). Greed and wish to get at least small part of the profit make unexperienced players to buy currency at the moment when experienced traders are already thinking of selling it.
How to avoid this situation?
Don’t buy any coin is there is not objective reason for it to continue the growth, and when several prolonged green candles have already taken place (have a look at the chart below).
Pay attention to resistance levels, and never buy currency when its price approach them. If you want to buy certain coin, wait until it breaks the resistance level.
Always check trading volumes of any currency you want to invest in.
Mistake 2: selling a currency after its lost of a market value
That’s a typical mistake made by every trader at least once – but in this case the main feeling moving the trader is fear to lose. Panic among the community and negative news only aggravate the situation. Suffering mental pressure, unexperienced trader sells all his assets in hope to keep at least small part of his investments. What happens later? … The panic seller finds out, that the rate has stabilized and that the lack of patience has led him to significant financial losses. You can view this situation on a graph below.
How to avoid this situation?
Fix your losses by setting Stop Loss order right after purchasing. If the positive forecast happens to be wrong, you will lose only a small part of your assets (not more than 10%).
Don’t sell your currencies if there are not objective reasons for the total crash down. If you have already lost a lot – just hold it till the rate drops to its bottom and wait for a turnaround.
Remember: experienced traders are waiting for you to sell at a loss – that will allow them to by currencies for cheap.
Mistake 3: exiting the position because of the small correction.
The market is cyclical. The growth can’t be eternal as there will be always people who want to sell. If the coin sinks for a little bit or remains flat, that doesn’t mean that the trend is going to turn into descending one, and that everyone are going to sell. Before buying a currency, you should consider the investment horizon. If you’ve provided careful analyze and selected a reliable coin for long-term investments, you shouldn’t care about any price corrections.
How to avoid this situation?
Always follow the news concerning the currency you’ve invested in.
Set a take-profit order on a mark a little bit under resistance levels.
Close the position parts by parts.
Mistake 4: investing into currencies which don’t have real value
This mistake is the result of a greed. Unexperienced players, who can’t detect pumps, purchase coins which were artificially overrated whith no having any significant value which makes it attractive for mid- and long-term investments.
How to avoid this situation?
Always analyze any project you want to invest in. Evaluate its importance, developers team, trading volumes, news background.
Never invest in pumps – especially is pump has already happened.
Never invest in suspicious coins, which are not listed on authoritative resources like CoinMarketCap or Investing.com.
Purchase coins with daily trading volumes no lower than $1 million and market cap above $10 millions.
Invest only in coins listed on major crypto exchanges.
Mistake 5: the lack of strategy
Most of beginners don’t follow any certain trading strategy; they don’t diversify their risk and often invest in scam projects.
How to avoid this situation?
Don’t invest more than you are ready to lose.
Don’t invest in one currency; choose several projects.
Don’t invest in ICO promising suspiciously huge profit.
And the last one recommendation. Before taking a decision always consider all the factors which can affect coin’s price in the future. That can be:
1)Fundamental analysis
2)Technical analysis
3) Statements of developers
4)Changings in developer’s team
5)Trading volume and current situation on the market
6)Public opinion (forums, social media, Github etc.).
Invest safely with CryptoCurrencyUnivers!
Hope this all help for Crypto currency investors
This post is very detailed and very helful to newbies. I am not expert in trading so I can apply this in my self. Your are correct most of people lose money because of wrong strategy of trading and most of people are those just want quick profit even though they have no enough knowledge in trading. To be a good traders you have to consider the six recommendation. in this topic
#Support Vanig
It is a very good and detailed explanation for the dont's in crypto world. I myself also experience this all in the description and it made me felt better. Sometimes you must go a failure to be able to advance and avoid anymore loss. But it is good also to read this especially newbies in order to not make mistake.
1. Still believing fake partnerships and people like McAfee
2. Investing way too much
3. Investing way too much in one thing compared to their portfolio, just a couple examples.
2. Investing way too much
3. Investing way too much in one thing compared to their portfolio, just a couple examples.
i can be related to the excellent written in my view two most common points we can consider they are greed of investors for holding long and lack of patience both are essential as a trader
Very good selection of typical errors, for beginners it is necessary to read. I just can not stop myself from buying coins in a falling market. Now it hurts me to look at my portfolio. 
The main mistake is just becoming a cryptotrader without any proper training. Many people think is an easy task and jump into it. It is just a silly risk.
Actually the encryption monetary market is the best way to make money is held for a long time, and the long-held premise is the token is an excellent tokens, and maintain a positive development, then you should be in gtihub search relevant information about the tokens.
I can add from myself that you should not play with borrowed money. How many cases have people borrowed from banks, and after a complete collapse at the crypto-exchange, they could not repay their debts. Trade only costs what you are willing to lose.
I also have read here in the forum about one member ended up in a great loss when he bought 3 BTC when it hits 19,000$. The money he used was a borrowed. That's very heartbreaking, a mistake no one would want to try.Borrowed money is not what anyone should be able to afford to lose and a huge amount like that is not even what someone on earth would want to lose, but I guess the mindset of people when it comes to greed and looking for ways to get rich quick will always put them into a huge problem.
Anyway, the answer of the question is in the question itself. It's because of FOMO. Maybe that time, he/she was not yet aware of the risks he/she was about to face. Truly, little knowledge is dangerous.
Very well said from the OP 
I've made some mistake in the past in trading but now I know how to handle it because of the help and advise from expert here on the forum, it is always good to learn first and do your research before entering the trading because the risk is always there.
I've made some mistake in the past in trading but now I know how to handle it because of the help and advise from expert here on the forum, it is always good to learn first and do your research before entering the trading because the risk is always there.
Thanks to all for sharing your thoughts and opinions in this post
Crypto trading is easy to learn , but you haev to search for the best knowlodge
I can add from myself that you should not play with borrowed money. How many cases have people borrowed from banks, and after a complete collapse at the crypto-exchange, they could not repay their debts. Trade only costs what you are willing to lose.
I also have read here in the forum about one member ended up in a great loss when he bought 3 BTC when it hits 19,000$. The money he used was a borrowed. That's very heartbreaking, a mistake no one would want to try.Borrowed money is not what anyone should be able to afford to lose and a huge amount like that is not even what someone on earth would want to lose, but I guess the mindset of people when it comes to greed and looking for ways to get rich quick will always put them into a huge problem.
I can add from myself that you should not play with borrowed money. How many cases have people borrowed from banks, and after a complete collapse at the crypto-exchange, they could not repay their debts. Trade only costs what you are willing to lose.
I also have read here in the forum about one member ended up in a great loss when he bought 3 BTC when it hits 19,000$. The money he used was a borrowed. That's very heartbreaking, a mistake no one would want to try.
buy high sell low!
trading or investing to an alternative coin without studying the token or coins.
PANIC selling
getting into more FUD.
you can avoid this by researching more and avoid getting panic.
That first one is definitely what most people even on this forum who have seen the opportunity to trade are always facing, lol. It is very crazy that so many people just want to make money and they always end up skipping all the important part to do it right which is the main reason they always end up the way they do by losing so much. The first two you mentioned is what always end up giving in room for the last two and there is no way they can ever help it without learning. trading or investing to an alternative coin without studying the token or coins.
PANIC selling
getting into more FUD.
you can avoid this by researching more and avoid getting panic.
I like this advices, thank you for this awesome share.
The mistakes you wrote here I made myself when I was a beginner. Now I practically do not admit them. Your material is very useful and I think it will help beginners.
The truth is that experience usually helps in any investment and there is no one who is perfect or would say at some point in time, they did not make a mistake they eventually ended up learning from. This is something that is pretty normal for everyone as we cannot always have it every way but the good thing is that we try as much as possible to learn to pick up from the mistake and do it better next time. It would only be foolish to be making the same mistakes over and over again. 
I can add from myself that you should not play with borrowed money. How many cases have people borrowed from banks, and after a complete collapse at the crypto-exchange, they could not repay their debts. Trade only costs what you are willing to lose.
That would actually be one dumb thing to do anyway. Even your own money is not safe when trading as a crypto trader unless you have some great level of knowledge.Nevertheless, rather than saying not playing with borrowed money, I would rather say, you can still go ahead with borrowed money as long as you know what you are doing. The only problem is to have borrowed money and you are trading with no knowledge at all. That is someone who is set for doom!
buy high sell low!
trading or investing to an alternative coin without studying the token or coins.
PANIC selling
getting into more FUD.
you can avoid this by researching more and avoid getting panic.
trading or investing to an alternative coin without studying the token or coins.
PANIC selling
getting into more FUD.
you can avoid this by researching more and avoid getting panic.
The mistakes you wrote here I made myself when I was a beginner. Now I practically do not admit them. Your material is very useful and I think it will help beginners.
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