#TradingTools101

Errors that beginner traders can make

📉 Errors of beginner traders and investors in the cryptocurrency market:

1. Investing without sufficient understanding or research

Many beginners enter the market based on recommendations or rumors without understanding the project or the coin, which makes them susceptible to losses.

2. Falling into the greed trap (FOMO)

Entering trades out of fear of missing the opportunity (Fear Of Missing Out) when prices rise quickly often results in buying at the top and losing afterward.

3. Not using a clear strategy

Entering the market randomly without a trading plan or defined goals exposes the investor to market volatility and increases the chances of loss.

4. Ignoring risk management

Investing all capital in a single coin, or entering with large amounts without establishing an adequate risk percentage, leads to significant losses.

5. Emotional trading

Making decisions based on fear, greed, or momentary excitement instead of logical analysis.

6. Ignoring the importance of secure storage

Leaving coins on platforms without using cold or secure wallets can expose them to theft or hacking.

7. Getting carried away by low-quality coins without solid fundamentals (Shitcoins)

Investing in unknown coins just because they are cheap or "might take off," without studying their background or project.

8. Not diversifying the portfolio

Putting all money into a single coin or a single type of digital asset, increasing the risk.

9. Overtrading

Trying to profit from every movement in the market can lead to burnout and losses due to commissions and price volatility.

10. Excessive reliance on others

Imitating the decisions of "influencers" or trading groups without understanding the reasons, which makes the investor a victim of scams or manipulations.