Their popularity has been and continues to be greatly contributed to by the media and social networks. It was impossible not to notice the flow of information about technologies, cryptocurrency quotes, and forecasts. There is a lot of educational content on the Internet that opens up bright prospects and ways to enter the market for many interested people. Needless to say that the demand for such content is growing steadily?
Content with author’s interpretations of the market situation often appears on the Internet. Each such post is a personal opinion of a specific person, based on his own experience and/or his expectations. Regardless of how correct the interpretation of what is happening, they often provoke newcomers to rash actions.
Relying on investing or trading solely on information taken from the Internet is a very bad idea. The consequences can be very sad, for example, you can lose all your investments by incorrectly choosing the entry point into the market. Let’s look at some of the most common mistakes made by beginners in the crypto market.
Blindly Trust Advice from the Internet
The effectiveness of investing and trading largely depends on the ability to analyze information. The most obvious and accessible sources of information in the modern world are social networks and the media. You can really get a lot of valuable information from them.
However, any content maker always has his own goals and not always noble ones. Not a single organization of pumps on the market can do without preliminary information preparation of users. Information from the network can be used for independent analysis of the market situation, but not as an immutable truth.
Ignore Industry Events
Technical analysis in the cryptocurrency market works noticeably worse than in traditional financial markets. That is, it is not enough to determine entry and exit points from the market. The crypto market is very emotional and reacts violently to various news and events. Even USDT ERC20 price is not always firmly and unshakably tied to USD. Therefore, experienced market participants closely monitor the news. It’s actually almost impossible to keep track of everything, but you definitely shouldn’t ignore:
- Regulatory events
- Transfer of tokens after completion of the ICO.
- Coin distributions.
- Carrying out forks.
Give Up Studying
The cryptocurrency market is still very far from being considered established. New projects, protocols, technologies appear almost every day, and in order to achieve the desired results, it is important to improve market analysis skills. In addition, you will need other knowledge, in particular, ideas about risk and capital management.
Focus on Individual Assets
Yes, Bitcoin and Ethereum are already considered blue chips of the young market, but with other assets things are more complicated. A coin could have been profitable yesterday, but it is not at all a fact that it will be so tomorrow. Therefore, professional investors regularly rebalance their portfolio. Agree, it is better to get rid of some assets in a timely manner and buy USDT ERC20 rather than end up as a bugholder.
Give in to Emotions
A series of victories on the sart of getting to know the crypto market is most likely pure luck, an accidental successful entry into a trend. In the same way, several losses in a row is not a reason to write yourself down as a loser. Both euphoria and depression are equally undesirable, since too violent emotional reactions do not contribute to making informed decisions.
Working Without a Plan or Changing Plans on the Fly
A trading or investment strategy involves planning and the most precise execution of the plan. Even an imperfect plan is better than chaotic, sharp throwing from side to side. At least because if it doesn’t work, you can always analyze your actions, find the weaknesses of your strategy and adjust it.
