10 COMMON MISTAKES WHEN TRADING CRYPTO
Serious warning for new & old investors
1. Leveraging Abuse
High leverage = high risk. A sudden candle can wipe out your account.
→ Use a maximum of 5x and always set a stop-loss.
2. Trading by Emotion
FOMO and panic are the most dangerous enemies.
→ Stick to your planned strategy, not emotions.
3. Neglecting Security
Hackers don't need a warning beforehand.
→ Use cold wallets, enable 2FA, carefully protect your seed phrase.
4. Blindly Copying Trades
Trading based on advice without understanding anything is an unsafe action.
→ DYOR: Do your own thorough research on the project, team, and tokenomics.
5. Trading for Revenge
Wanting to recover losses quickly often leads to even greater losses.
→ Stop, regain your composure, then return to the market.
6. No Trading Plan
No strategy = no direction.
→ Make a clear plan: entry point, exit point, risk ratio.
7. FOMO when prices have already pumped
Entering trades when everyone has already bought can easily make you the last one in.
→ Wait for a correction or clearer signals.
8. No Risk Management
Putting all your capital into one trade = unnecessary risk.
→ Risk per trade should be limited to 1–2% of your portfolio.
9. Following Green Candles Without Analysis
A bullish candle is not a solid buy signal.
→ Need additional confirmation: volume, technical patterns.
10. Refusing to Cut Losses
“I'm sure it will recover” is the most dangerous saying.
→ Always have an exit plan – and stick to it.
CONCLUSION:
Effective trading requires knowledge, strategy, and discipline.
The market will reward those who know how to control themselves before controlling profits.
#CryptoMindset #TradeSmarter #ManageRisk #CryptoDiscipline #LearnBeforeEarn