In the industry of cryptocurrency to rely on words more “experienced” investors simultaneously risky and rewarding. Some of their tips really can save and multiply your money, while others will cause full loss of Deposit. Today we’ll open a heading of “bad advice” — below are three of the most common mistakes, which in any case should not be allowed in the niche of the cryptocurrency.
Technical analysis does not work
Not every trader or investor believes in THAT. It is worth noting that technical analysis only works when a sufficient number of players in the market give it a special value. It’s true, in most cases, the analysis of graphs of the coins with good liquidity gives a rather true than false.
History often repeats itself, especially in the economy. Cryptocurrencies are no exception to this rule, despite its “innovative” approach to the global financial system. Accordingly, the use THAT will give you a clear understanding of the current situation of the market. In any case, elemental analysis of 1-day charts at least helps to avoid purchases of cryptocurrency at its peak and sales are at the bottom.
Stop losses are not needed
In working with such volatile assets always need to take care of security measures. This is especially true for altcoins with small market capitalization, because they are often exposed to manipulation by whales. A game with excessive risk without the protection of his capital always leads to elimination from the market.
Stop losses are experienced traders rarely come into action, because they already have honed your trading strategy to perfection. Beginners this level is too tough — it remains to fill the cones from their own mistakes.
HODL for the ages
More recently, the rule applies only to HODL the top 15 of coins of the stock market. They are very volatile, but at least have greater liquidity than other altcoins. They have potential and they can bring good interest in the future. Now look at your portfolio and think, who needs a useless coin with a dubious future?
During the correction of 2018, the industry lost more than 600 billion market capitalization, and many “future projects” just turned to dust. Do not fall for their assets, make money. Don’t forget to record your income during the next bullrun. And for God’s sake, no need to buy Bitcoin for $ 100,000.
Information prepared in NullTX. But useful tips can be found in our cryptodata.
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