Talk about the most profitable trading mediums today and Bitcoin tops the chart with élan. The coin boasts high volatility which can pique its prices to a far higher limit compared to traditional trading mediums. Are you too interested to test the waters with Bitcoin trading? Well, that would be great- but, remember, beginner traders are often vulnerable to a set of mistakes that leave them broke. Since, you are just starting out, be careful of the list of mistakes given below to ensure a safe trading experience.
Not maintaining balanced portfolio
New traders often tend to put the majority of their investment in trading with the hope of higher returns. But, this is not the right thing to do as you might encounter loss at any moment. The best thing is to proceed with a balanced approach. 70 percent of your investment should be allotted for long-term hold, 15 percent for cash and the rest 15 percent for trading.
Not signing up with the right trading app
A lot of amateur traders commit the mistake of selecting a trading app in a rush only to fall prey to an unfavorable and unsafe trading experience. There are scores of Bitcoin trading apps around but not all can promise you a satisfying trading experience. Thus, you must take a comparative study between at least 4-5 such apps to find the most compatible app for you. Look for a reputed app that uses advanced algorithm like Bitcoin Era, assures a minimum 99% accuracy rate and follows strong security measures.
Trading without stop loss
Amateur traders generally trade emotionally and emotions don’t let you accept losses easily. But, this is one of the major factors behind new traders losing money at a large scale. Don’t bring your emotions here. It’s a trade and there will be times when you will face a loss. If you experience a loss, don’t linger there. Accept it and move to next trade.