Being a bitcoin trader can indeed make you provide a large income. In fact, in minutes. However, novice traders usually find many problems. So, it can not be profitable. To overcome this, you need to know and understand the pitfalls that often occur in bitcoin trading.
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Below, we will discuss what are the pitfalls that often occur when trading bitcoin. However, the trap in question is a trap of your own. This trap, also often appears for other traders outside of bitcoin trading. What are the pitfalls? And how to overcome it?
Do not study the Bitcoin and Cryptocurrency markets
The first trap is not to study the bitcoin and cryptocurrency markets. This trap is often experienced by novice traders. Usually, people who are just starting bitcoin trading see or get information about how to get fantastic profits easily. In fact, it’s not that easy. In fact, everything has a process.
If you don’t learn how to market bitcoin and cryptocurrency, how can you get consistent profits? Or even, you already lost the first transaction.
So, studying the bitcoin market and other cryptocurrency is the main thing that must be owned by a trader. So it doesn’t get stuck. Here is an article explaining the bitcoin market https://indodax.academy/learn-bitcoin-what-because-price-trike-and-turun/.
Lack of Knowledge in Blockchain
This is the next trap. Many beginner traders who equate bitcoin trading with trading other products. In fact, fundamentally, bitcoin and other cryptocurrency are different from other products.
Yes, because bitcoin and cryptocurrency are products of the blockchain.
What is blockchain?
Blockchain is a system that is not centralized or decentralized. So that no one or one institution can be the center of the system.
Then why do we need to understand what blockchain is? This is to make it easier for you to analyze fundamentally. Besides that, you can differentiate how to trade shares or other trading with bitcoin trading.
Fundamentally, stock trading is very dependent on sentiment for the company or its issuer. Government policy factors both from domestic and abroad are also very influential.
While bitcoin and other cryptocurrency are not affected by this. Because it only affects supply and demand or supply and demand.
Emotions When Making Decisions
When you are a beginner trader, you will definitely be surprised by the bitcoin price movements. Up or down can make your emotions unstable. You can be emotional when you make a decision, whether it’s selling or buying. Emotion certainly makes you not think clearly. You will experience a loss if you are still emotional in making decisions. Even more dangerous if all your money runs out because you are emotional.
Unstable emotions can also make you act rashly in choosing tokens or coins. Many coins have not been verified and have a bad track record. Who believes in cryptocurrency, if the notes or portfolio are not good.
In addition, there is also a Fear of Missing Out (FOMO) or feeling of being late. This is a trap that needs to be avoided, because it haunts novice traders.
For that, you need to think clearly and put your emotions aside. So you can make wise decisions when trading bitcoin and other cryptocurrency.
Invest All Money in One Crypto
You should avoid investing all your money in just one crypto. Actually, it’s okay to have a favorite coin to trade. But as a business-minded trader, you should not be too attached to certain coins.
This will make you lose chances on other coins. This will be a trap. Even if you have other crypto, your losses can be covered by other coins.
Origin Sell and Origin Buy
Even though you are emotionless and calm, you cannot be categorized as safe when trading. Because you can just sell and buy origin. This is a trap that is also often experienced by novice traders.
Unless you understand how to analyze when the right time to buy and when the right time to sell. You can see the explanation in the following article: https://indodax.academy/trading-bitcoin-beli-saat-akan-naik- jual-saat-akan-turun/
Trading on an Unsafe Exchange
Before trading cryptocurrency, one of the main things to consider is a reliable cryptocurrency exchange. Even though so many exchanges out there are quite vulnerable to attack, it is important to prioritize security when making choices.
In addition, many cryptocurrency exchangers who glue get licenses from the Indonesian government. Of course this is risky, especially for those of you who are just learning bitcoin trading. The danger is that you will experience losing money or being hacked.
Then, Indodax is the right place for you to learn to trade bitcoin and other crypto assets. Indodax has been registered with the Commodity Futures Trading Regulatory Agency (BAPPEBTI).
Last but not least,
Those were the pitfalls that are often experienced by novice traders in bitcoin trading. Hopefully with the solutions above, you can benefit maximally and consistently.
Also check out the tips videos on Indodax Youtube https://www.youtube.com/indodax.
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