1. Emotional trading
Making investment decisions driven by fear or greed, for example, selling during price drops or buying during price rises, will result in financial losses.
** Note: what is mentioned here refers to when you invest in Bitcoin or in large and reputable projects, not in small and risky cryptocurrencies.
2. Intensive use of leverage
Borrowing to operate with amounts greater than your financial capacity increases the likelihood of your losses if the market moves against your expectations.
3. Ignoring fees
Fees are also an important factor sometimes when amounts are large. Not paying attention to transaction costs or platform fees reduces profits.
4. Lack of research and analysis
Trading in this field without a proper understanding of the asset or the market in general or making unfounded investment decisions results in losses.
5. Random trading
Entering trades without clear, pre-organized goals or strategies increases risks and reduces your chances of success or obtaining the profits you desire.
6. Ignoring security
Not securing digital wallets or using unreliable platforms exposes digital assets in general to theft or hacking. This has happened to many people.
** Note: Never forget that the goal of the platforms is to help you buy and sell, not to invest. If you want to invest in Bitcoin long-term, for example, or in any other cryptocurrency you plan to hold, buy and transfer your assets to external digital wallets, or what is called a cold wallet.
7. Being misled by trends
Buying cryptocurrencies or assets at price peaks. This occurs due to artificial noise and fear of missing out. This leads to losses when prices start to pull back and correct.
⸻
✅ Tips to avoid these mistakes
• Establish a clear trading plan:
Set your goals, take risks, and define exit strategies for the assets you are investing in.
• Use secure and authorized platforms:
Do not choose weak trading platforms. Choose trading platforms with a good reputation and strong security measures.
• Conduct thorough research:
Study the assets or projects before making investment decisions.
• Risk management:
Use stop-loss orders and diversify your investments. The topic of risk management is very important and is the most ignored.
• Discipline and patience:
Avoid emotional decisions and stick to the strategy you have set for yourself.
