Starting trading cryptocurrencies at first can be scary but once you get used to the market and figure out what you want to invest in you can make a great profit. Of course, there is a learning curve before you reach the stage where you make lots of insane gains.
For that to happen you need to make right decisions and avoid basic and not so basic mistakes. Here are the 5 mistakes you should avoid in 2018 for better trading with cryptocurrencies.
1. Putting your eggs in one basket
Most of the new investors like to invest in "the next bitcoin" or "next ethereum" and to be honest, I get it I really do. It is everyone's dream to invest in a dirt cheap coin and watch it grow 10 x times or 100x times. But please for the love of god don't invest all your money into one coin because you heard someone in the bar say that this will be the "next bitcoin".
You should always do your own research before you invest and if you invest in dirt cheap coins do it for the right reasons. Search for the coins that have real-world usage and value those are the ones that will make you money in the long run. Also if you can invest into one of top 3 coins BTC, ETH, LTC since they are more or less low risk and will over time bring you some steady and I could say guaranteed profit if you hold for a relatively long time.
2. Letting your emotions control you
A lot of traders screw up their trade because they let their emotions control their decisions. When you let your emotions control you that's when you make quicks decisions that cost you greatly and take your potential profit away from you. So don't panic, don't be too greedy and don't FOMO (fear of missing out). Stay calm and think logically and be emotionless as close as you can be to that state and make the best decision you can in the situation that you are. You are not going to always get out of a "bad" situation but you should assess it and make the best decision you can and guess what that's good enough.
3. Investing money you cant afford to lose
Don't be like my neighbor who went and got a loan from a bank for 20000$ and after two months he was down to 8000$ and asking me for advice. It is ok to invest a small amount of money just to test things out, make some profit and maybe trade with only the profit you made. That's more safe, responsible and smart.
We all want to start with more money and make insane gains and all be millionaires but that just won't happen. Some may become millionaires and some will just be well off and that's great too. Be responsible with your money and don't invest more then you can afford to lose.
4. Day trading JUST DON'T
I'ma be honest... I tried it. Let's just say if I did long-term trading aka HOLDING I would have a higher profit now. You might have heard that 90% or 95% of traders lose money... and those traders are day traders. I am not going to deep into this one but my advice is AVOID DAY TRADING especially if you are new to crypto trading world trust me you are going to avoid a bullet.
5. Not doing your research before you invest
John may say that investing your money in a certain cryptocurrency is the best decision of your life but in most cases, it is best to do your own research and make your decision based on the info you got. Because chances are John doesn't know what the hell he is talking about. Do yourself a favor and invest carefully and get your facts from sources that are legit.
So yeah those are the 5 mistakes from top of my head that I would avoid when trading. We all want to make money but let's do it responsibly and be levelheaded.
I wish you all a successful trading year in 2018. Let's make lots of money!