Topic: Some Errors We Make In Trading Crypto - page 9. (Read 1284 times)

Most of our errors are related to the psychological factor. We can learn many new techniques to work and alot of theory, but it is really hard to deal with mind factors.

This is another angle to the discussion around exchanges and their commission.


I totally agree with the point above, liquidity is very important for the ease of trade and peace of mind, I already know this, but I ignorantly didn't mention it on my post because I thought traders should already know this too.

My honest idea behind the point you @Ratimov quoted above is that traders learn to balance the equation for/by themselves, and that is to find a great exchange with great liquidity and high trading volume plus low fees, we all will agree that Binance exchange is currently the best in those regards and even in many other regards like security, law abiding etc , but then, we mustn't tell everyone to go to Binance, traders should be allowed to make that choice themselves through their own research.

Of course it isn't, but quite a lot of people do not believe that, i think a lot of problems people have with crypto stems from the fact that they want crypto to make them rich asap, as a result they invest/trade without research, they invest/trade with more than they can afford to lose, they become impatient, they choose 'lottery' coins and end up in the receiving end, etc. People need to take crypto trading/investing as what can produce/provide a secondary source of income, that way they would be patient enough to do their research and make good decisions.

In truth newcomers need to understand that there is no trading guide that can guarantee them profits, all they must do is learn all there is to and make the right choices, but profit and loss remains a possibility, but when you lose, just learn from it and move on.

The errors I made in crypto is catching the falling knife or when it goes up a lot and going for short. I learned from those mistakes I hope soo.

My mistakes only when it comes trading is when everytime i'm going all, actually some of them are accidentally, but i can really tell that it's always my mistake when i see a sign of long position or shorting. because it seems a coincidence that the market always suddenly changed direction afterwards, but if I'm not going all in the results is always good.. Lol  
Well i'm glad that there's a stop loss because probably if it didn't exist I've already blew my capital..  

Not just local exchanges, some international exchanges charge deposit fee too, atleast, I know of latoken, I used latoken for a very long time, Infact, she was my best exchange at the time, until she got so greedy.
First, they started by raising withdrawal fee up over 100 percent, and after some time, like couple of months later, maybe the money they were generating from the already high trading and withdrawal fees weren't enough, they decided to impose a deposit fee thier customers, this means that when depositing, you pay the network fee and latoken exchange still take 1 of 2 percent off the total amount of coins you are depositing.... This is day light robbery.

I know of another exchange too( i won't mention name right now), that charge fee in the native coin of the blockchain network you are withdrawing to and charge another fee on the actual token the customer is withdrawing.
For example, a customer wants to withdraw usdt from this exchange,(^{we all know that USDT runs on different blockchains}), so let's say the customer selects Tron network as his or her preferred blockchain, this exchange will require the customer to pay a fee in TRX (ranging from 20 TRX up) and they will still charge this customer 5 usdt withdrawal fee.... What do you call this?

All of what you have said is true but there is a really a lot of errors we make in crypto trading and not just that, I would like to include some of the errors based on my experience:

- Rushing to trade with leverage (Futures trading)
- Not using Stop-Loss
- Hoping (Hoping that the price would still recover which is wrong, whatever the market is showing just rely on it don't think that there is a chance)
- Learn to accept losses
- If the market shows reversal respond to it but make sure to wait for confirmations
- Relying in trading groups

This is just my personal errors that I wanted to share to all traders and this is all based on my experience as a trader.

Anyone doing this will later go for paid signals and this is just a scam, even anyone can give signal to be paid for. The best for a new trader is to use the amount of money he can afford to lose to trade, starting with very low amount of money to trade, using it to learn. Time will tell if he will want to continue to trade or not, depending on net profit he make. A tradeer should focus more on how not to lose than how to make profit for him to be a successful trader.

On many trustworthy exchanges that are centralized, the transaction fee for bitcoin is always high, this is one of the reason some traders with low amount of fund are leaving it on the exchange, but a centralized exchange can be hacked and this is the reason all funds a trader is not using to trade should not be left on a centralized exchange. But about bitcoin, if the fee on noncustodial wallet can be less than $1, exchanges charging $20 or higher are charging too much but is usually the case, most trustworthy exchanges charges up to $20 or more.

The fee for some altcoins are low though, but some exchanges are also not good because the fee for altcoins are high, one of the exchanges I have used before with altcoin high withdrawal fee is HitBTC, this has been one of the reasons I left the exchange in addition to the complaints from many of their customers about the exchange forcing them to get verified as their accounts were freezed.

There are some wierd exchanges that derive pleasure in exploitation. I know of a few local exchange that makes their customers pay for deposit and withdrawal fees and the make them believe they are doing their customers a huge favor. Most time this happens due to ignorance

Lol, this is really me at first when I entered trading. At first, I think signals can make you profit since when I tried this (joined groups in telegram and also group chats in social media), it was going well at first, but imagine someone just giving you a signal when to trade and I am thinking this like if someone will tell you to eat a poop you will eat it because you want a shortcut to gain money. This is really dumb  because in the long run that you they will ask you to pay them to continue on their market signal business and you are finished this time when you are not paying money . So it is the best to learn on this.

I think this should be added also

• Getting greedy: we know that we are emotional when losing. Someone tends to try to win back all the losses which lead to trade over your capacity and loses more again. We should learn control our emotions. If we get emotional because of the losses, walk outside. That is the most common word you will hear when a trader loses a big trade.
• and without a concrete strategy - This is most of the newbies' problems because they trade without a proper strategy. You should list first your target profit or where you cut your losses, or when you take this trade (there should be 3 or more indicators showing to take this trade), watch the news, and many more.

   There are many mistakes we make in crypto trading, crypto newbies as well as those that's been into crypto for a while often make this same mistake.
However, allowing yourself to make too many mistakes in your cryptocurrency trading journey can end up being a source of discouragement, as we all know, the market does not forgive even an honest mistake, and even the smallest mistakes turn out to be very expensive at times, so it is advisable we always advice ourselves, do a proper research before making important decisions, don't depend solely on market signals, it is true that many have made a fortune through market signal, but also alot more have lost everything through it as well.

Few tips I feel will help us to avoid some of the mistakes we make or are likely to make in our cryptocurrency trading journey are - but not limited to -
 

• Going all in- it a very bad habit, never ever put all your eggs in one basket. ^{it's a popular saying.}
• Crypto is not a get-rich-quick scheme- so seeing it as one is a big error and can lead to a lot of other mistakes and loses.
• Purchasing a coin mainly because it's price is low- many people avoid buying coins like bitcoin, Ethereum, bnb because they feel the price is already too high, so they opt for Shiba inu kind of coins which give them billions of coin for a dollar, only for the developers to abandon the project after few months, and they end up loosing their money- don't do this, it's a very bad habit, and the result of making this kind of mistake can be very expensive most times.
• Being a victim to scam/con artists- Avoid this at all cost, you can achieve this by educating and enlightening yourself, "when you know what they know, or even more than they know, they won't be able deceive you", its that simple.
• Using other people's market signal to trade- doing this saves you alot of time and also makes trading very easy -, but remember, "good things don't come easy, if it does, then it comes a child's play", learn to do your own research, analyze the market, technical and fundamental analysis, learn everything you need to be your own boss in your crypto trading.
• Making use of exchanges with high transaction/withdrawal fees - you don't wanna make all those profits and at the end of the day, loose it all to the exchange due to their exorbitant fees, be it in whatever form "trading fees, withdrawal fees, some exchanges even charge deposit fees", avoid this kind of exchanges, they are the number one joy killers in trading.

The list above is derived solely from my own personal observations and experiences, feel free do add yours.