Is Trading Bitcoin Hard? 8 Suggestions for Beginners
Trading is hard no matter which market you trade in. Almost 95% traders are destined to fail within the first few months. The truth is investing big and waiting for it to give you returns is far safer than trading constantly; the trader usually loses everything that he owned after some time. Most people tend to assume that investing in the cryptocurrency market is a like a walk in the park.
However, the reality is completely the opposite. Trading for a newcomer in cryptocurrencies is full of challenges and roadblocks. There are many reasons for this, and you can benefit if you know how to avoid these mistakes:
- Since the market stays open round-the-clock, traders feel that if they stopped trading, they would lose out. This fear of missing out results in too much fatigue and is an emotional challenge for traders. New traders especially find it hard to step back, and in the process end up damaging both their finances and personal lives.
- One week in the cryptocurrency trading world is like three months of experience in stock trading. So, when you take the plunge into this field, you have to dive right into it. You need to follow trades on an hourly basis, not on a day-to-day basis only. So, this is not for everyone. At times, it is better to invest long-term instead of trading daily. You have to understand that time is money, and you need to be prepared to invest a lot of your time into researching the market and tracking trades.
- It is necessary to learn the art of placing orders properly. Any coin’s value depends on the last transaction, demand-and-supply forces and on buyers and sellers. These demands are placed in an order book; to place orders, you need to determine the sell level, at which you will accept profits. You should ideally fix a stop-loss to reduce your losses. But knowing where to place such commands is important.
- As a beginner, it is advisable that you do not let your emotions get the better of you. In case the Bitcoin price comes plunging down suddenly, you cannot get cold feet because you fear losses. This is the time to buy more bitcoins, but if you are someone who is afraid to do that at this juncture, you should rethink your future as a crypto trader.
- In case coins have crashed for some reason, it would be a mistake to hope their original values will return. You can never be sure of this; so a coin that is lower than the peak price should not be viewed as an opportunity for further investments.
- The interplay between altcoins and Bitcoin is hard to understand for the newcomer. Altcoins are not very safe for trading purposes and to find chances demands a lot of expertise and patience, both found to be lacking in the newbie. So, the new traders typically misjudge trade prospects in terms of the coin’s USD value, not realizing that investing in Bitcoins would have been safer and more lucrative.
- Consider at first investing in an automated bitcoin trading piece of software. These programs make all or most of the investment decisions on your behalf following an initial deposit. This is ideal for beginners. The key here, however, is ensuring your auto trader is worth investing in. We recommend checking out impartial and objective reviews that test out the companies claims. For example, the bitcoin trader app has been making noise on the Crypto scene. The linked review makes an honest and impartial judgement on the app and its claims. Using reviews like these helps you seperate the auto trading robots that actually work from those that don't.
- New traders feel that getting rich is easy but in legacy markets, the experienced ones never feel this way. Cryptocurrency appears to attract people looking for short-term gains to support the post-retirement. This is an unrealistic assumption. Thos who have become rich in a short time have been plain lucky; cryptocurrency is never a safe investment. A newcomer who is inexperienced is less likely to lose everything by buying a random stock than buying crypto assets.