If you want to invest in the crypto verse long term, holding your coins is the best and safest way to make a profit. However, you can also gain a lot from day-trading in the short-term. Whether you want to try long-term crypto investments or invest short term, here are three mistakes you should avoid in cryptocurrency trading:
Not Having an Exit Plan
Traders live to plan. If you want to be an excellent trader, you need to plan against uncertainties. Remember that cryptocurrencies are volatile. If you see a good entry point and you notice that the price suddenly goes up, what do you do? Will you keep holding, or will you take your profit and exit? If you want to stay in the game long term, you should hold on to the coins. However, if you are only trading short term, take your profit and exit. To be on the safe side, only sell some of your coins not all. This way, you'll still have something left for cryptocurrency trading if the price goes up again.Jumping to the Next Coin When Prices Increase
Another big mistake traders make in cryptocurrency trading is that they attach the same value to all coins. The fact the Bitcoin and some other coins suddenly had impressive gains doesn't mean every coin will. Due to some factors, some coins will never get massive gains. You need to understand how cryptocurrency trading works and learn the specifics of all the coins you deal in. This will allow you to plan your trade.Trading With Your Emotions
Getting sentimental about a particular coin is a recipe for disaster. Every coin in the cryptocurrency trading world will have its good times, and its bad times. This includes Bitcoin and all the other major cryptos. Holding on to a coin you believe in for long is a good approach. However, you need to know when to let go. Don't get sentimental or you'll never make money from trading.
Look out for part III.
Posted from my blog with SteemPress : https://smartereum.com/8001/cryptocurrency-trading-mistakes-part-ii-dont-start-trading-until-you-read-this/
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