#CEXvsDEX101 #TradeLessons
Here are ten mistakes in cryptocurrency trading that could drain your profits:
1. *Overusing leverage*: High leverage can lead to liquidating trades; stick to 2x-5x multiples and use effective stop-loss orders.
2. *Emotional trading*: Avoid trading out of fear or greed; instead, follow a solid plan.
3. *Ignoring security*: Protect yourself from scams and phishing by using hardware wallets and two-factor authentication.
4. *Neglecting research*: Study the economics of tokens, project use cases, and team credibility before investing.
5. *Chasing losses*: Avoid overtrading or doubling down to recover losses; take breaks and regain your clarity.
6. *Lack of strategy*: Trade according to a plan, using technical setups like breakouts or swing trades.
7. *Fear of missing out*: Wait for pullbacks.