A cryptocurrency market is undoubtedly an attractive place. The conclusion of 2017 showed the world how fast and easy it is to make a fairytale fortune by trading on cryptocurrencies. It is, therefore, no surprise that this opportunity attracts many experienced as well as novice investors. Here is a list of the top 5 errors to avoid. The use of the IOTA Kurs trading is there now.
Smartest Options for the Best Crypto Trading Standards
The term shilling refers to exaggerated praise or extremely positive views on a cryptocurrency. The purpose of shilling is to promote and praise the cryptocurrency in order to buy as many people as possible and to increase prices. There are various channels on the Internet FB groups, Telegram groups, Reddit and different promoters who are paid for a shilling. Therefore, it is important not to spend money based on the recommendations of an anonymous person on the Internet, but to do your own research read the whitepaper, understand the added value of the currency, and recognize the creator. And only then consider a possible purchase.
Ignorance of basic elements for graph analysis
Many traders feel that technical analysis is complex or unnecessary. However, cryptocurrency prices often fluctuate according to certain formulas that can be relatively easily identified through technical analysis. We cannot say this with certainty we are in an extremely volatile market but it is certainly worth knowing at least candle charts, support and resistance bands and trend lines.
The resistance band is a price range that has not been repeatedly exceeded by cryptocurrency; the aid band indicates a price range where there is a high likelihood of price stabilization and reversal of unfavorable developments. The trend lines indicate the expected further development based on the current situation.
Selling to a minimum, buying to a maximum
As mentioned above, large price fluctuations are common in the cryptocurrency market. If the cryptocurrency price drops sharply, the worst thing you can do is panic and sell it to minimize losses. When the price increases, the acronym FOMO (fear of missing out), which means buying a cryptocurrency at its maximum price, is known because when you see a huge price increase, you want to participate at every price.
However, the price of a cryptocurrency can easily return to its original value in a few days, so it is important to keep your head cool during price fluctuations. Buying expensive and selling cheap is definitely not a strategy that will make you successful.
Do not take profits gradually and have no starting strategy
You have in your portfolio cryptocurrency, which is doing well and its price is rising. It is great, now what? Will you wait for the price to rise? Or will you wait so long that the price drops sharply? These questions need to be addressed in advance, otherwise, you may end up at zero. An effective strategy could be, for example, gradually taking profits, taking part of the profits, and waiting with the rest of the price does not rise yet.
Search for a new Bitcoin or Etherea
Bitcoin, Ethereum or Litecoin had an incredibly successful 2017 and saw a great price increase. Unfortunately, not all cryptocurrencies can repeat something similar. Some are hampered by too much stock in circulation, others have inherently fixed price bands where they can oscillate. To blindly hope that a cryptocurrency will be another Bitcoin is therefore unnecessary – it is more important to do a thorough currency survey and then estimate the price development.
Trading cryptocurrencies can lead to incorrect decisions that will make you lose money, often caused by panic when prices fall. To help you on your way, we have listed five mistakes that you should not make. If you keep yourself to this then the chance of success is a lot bigger.
Spread your chances.
If you are going to buy more coins and really start investing, it is wise to look at your own portfolio. Make sure you do not put everything on one horse and look carefully at how you organize your portfolio for the best chance of success.