These days, everyone seems to be interested in cryptocurrencies and how to make money from them. Overnight success is not impossible in the crypto market. While there are many ways to make money, there are also many ways to lose it. More often than not, people leave the market having lost everything, all their money, life savings and even a mortgage that can be exacerbated by the collapse in house prices. But most people don’t hear about these sad stories, and the cryptocurrency markets continue to thrive.
Loss is very common when dealing with such volatile assets. But are losses inevitable? Here are many of the main reasons why money is wasted, learn from your mistakes and you may come out stronger and wiser.
Not understanding the market
We are not all “experts” or people with access to private information. But we often make the mistake of relying too much on “experts” without really learning how the market works ourselves. Is the market very liquid? Does your cipher have enough potential? To know the right time to trade, you need to know what’s moving the market. It is important to do your own research.
Lack of trading skills
Are you a good trader? Have you developed your own trading strategy? There are many people who have been trading for a year and still don’t know how to read candlestick chart or how to use indicators properly. It is very important for traders to have their own trading style so that they do not follow the crowd and give in to emotions. Many stock exchanges offer tutorials and some even offer a personal account manager full of trading tips for users!
Trade too much, positions too big
Emotional trading is very common. Novice traders often push their limits by chasing rallies in the hopes of getting bigger profits. When the price drops, they are often the quickest to flee the market and lose hope of getting their money back. Some scholarships and whales are known to take advantage of such behavior and do work pumping and discharging In the market. Not to mention that for every transaction you make, you have to pay a fee for the exchanges. So be patient and stay in control too, never forget to distribute your money and get ‘backup plans’. Above all, don’t invest all of your money at once.
Forgetting to set stop loss and take profit type thresholds
Trading without stop loss or take profit is like driving a car without brakes. It is true that we do not like to admit defeat and sometimes we are too greedy to come up with a winning position. But we can’t always be right and win, especially in volatile markets. Trading is a long term activity and with good Stop Loss and Take Profit thresholds, you have the opportunity to continue trading.
emotional trading
Novice traders are easily frightened and discouraged as soon as the price drops. Cryptocurrencies are volatile, which is why people can make a lot of money trading them. When investing in cryptocurrencies, you must have patience and courage to deal with price fluctuations.
Is Your Cryptocurrency Exchange Best for You?
There are many exchanges like cryptocurrency, and a large part of them are scams or fake exchanges. A bad exchange will charge an unreasonable fee and simply won’t tell you the fee you will pay. Others, even those as well-known as Binance, will manipulate the market or deliberately shut down. Even worse, many exchanges shut down and disappear every year, leaving users’ money behind. Sometimes the features and trading rules of some exchanges are so difficult to use that traders take a long time to learn how to use them.
If you are looking for a good exchange, look for one that offers a demo account. With the demo account, you can practice trading strategies, learn to control your emotions, and learn how to analyze the markets. Successful traders are those who learn to analyze the market, keep up with market news, and constantly try out different strategies. A good demo account is a sandbox to improve your skills and get to know a rapidly changing market.
Moreover, choosing an exchange that offers clone trading is very important, a platform where you can start your “trading world journey” without having to know everything about the cryptocurrency market. Qualified premium traders are able to trade on your behalf. This is perfect for all traders, but especially if you are a new trader. During the process, you can also learn great trading strategies from other experienced traders.
Bexplus offers 100x leverage on BTC, ETH, DOGE, ADA and XRP futures contracts. Besides, the exchange provides 10 demo accounts for BTC. Bexplus is trusted by over a million traders worldwide. KYC, no deposit fees, and traders can enjoy the most considerate services, including 24/7 customer support and a personal account manager. Bexplus is also known for the following benefits.
Read also: 20-year-old trader shares his ways to make money
- Free 10 Bitcoin Demo Account
When you register with Bexplus, you can get 10 BTC for free in the trading simulator which allows you to practice futures trading without losing any money.
You can copy the trading of other excellent traders automatically. Not only can you directly see all the statistics of the trader’s trading data in question, and make comparisons based on many parameters, but you can also customize the copy order size, set take profit and stop loss, copy order proportionally, and finish copy order at any time.
The 100x leverage offered by the Bexplus exchange allows you to open 100 positions with a margin of 1 and trade the market with 100 positions. In short, with the 100x leverage provided by Bexplus, your profit can be 100 times greater than the profit made by the initial investment.
Suppose we use 1 BTC to open a long contract when Bitcoin is trading at $38,000. A day later, the bitcoin price rose to $42,000. The profit will be ($42,000 – $38,000) * 100 BTC / $42,000 * 100% ≈ 9.52 BTC, giving a 952% ROI.
- Portfolio with annual interest up to 21%
Prices go up and down, but the BTC Bexplus wallet is here to protect and grow your assets. If you want to rest from the ever-changing cryptocurrency market, you can turn to the Bexplus interest wallet. It offers an annual interest of 21%. In other words, if you deposit 1 BTC, you will get 1.2 BTC after 1 year. Undeniably, this is almost the highest interest in the industry.
Double deposits, double profits. Users can get a 100% deposit bonus on every deposit at Bexplus. If you deposit 1 BTC, then 2 BTC will be credited to your account, and the profits obtained with the bonus are withdrawable.
Click here to sign up for Bexplus now and get 100% bonus!
warning: This article is promotional content and does not constitute investment advice. Do your own research and only invest money you can afford to lose.