Should beginners trade cryptocurrency on demo accounts? Psychological aspects of trading and research
Cryptocurrency trading is a complex and risky type of investment, especially for beginners. One way beginners can learn and gain experience is by using demo accounts that do not involve real money. Let's consider whether beginners should trade on demo accounts, focusing on the psychological aspects of trading and some psychological research results.
Advantages of Demo Trading for Beginners:
1. Risk-free Experience:
Psychological aspect: A beginner can gain experience in trading without real financial risks, allowing to experiment and learn without fear of loss.
2. Getting to know the Platform:
Psychological aspect: Understanding the functions and interface of a trading platform can reduce stress and improve the confidence of a newbie.
3. Development of Strategies:
Psychological aspect: Demo trading provides an opportunity to develop and test trading strategies without financial pressure, which facilitates learning and improving skills.
4. Definition of Psychological Anxiety:
Psychological aspect: Demo trading helps beginners to determine their psychological anxiety and reaction to stressful situations without the real risk of losses.
Disadvantages of Demo Trading and Psychological Aspects:
1. Absence of Emotional Load:
Psychological aspect: Demo trading does not convey the emotional aspect of real trading, as there is no real financial fear.
2. Invisibility of Psychological Pressure:
Psychological aspect: A beginner can feel less pressure and relaxation when using a demo account, which does not always correspond to real trading.
3. Lack of Possibility of Saving on Errors:
Psychological aspect: Demo trading does not convey the psychological aspects of losses and learning from one's own mistakes, which can be important for improving strategies and avoiding similar mistakes in real trading.
Psychological Research and Demo-Trading:
Research on emotional responses to losses: It has been found that people react more emotionally to losses than to gains. Demo trading may not convey this aspect.
Theory of behavioral economics: Demo trading separates the solution of real financial problems from the strategies and decisions of the novice.
Conclusion:
Demo trading has its advantages and disadvantages, especially from a psychological point of view. Beginners should carefully weigh these aspects and decide whether to use demo accounts depending on their personal psychological needs and trading goals.
