The main mistakes of traders in crypto currency trading

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The main mistakes of traders in crypto currency trading

The main mistakes of traders in cryptocurrency trading

According to the most positive statistics, more than 90% of all beginners of crypto traders lose their funds because of mistakes. Cryptocurrency exchange trading is a very profitable business, but at the same time it is quite complex. The fact is that there is a massive wall between the beginner of cryptocurrency traders and successful transactions on the stock exchange (as well as profits). This depends only after many peaks and volatility in the market.

To protect you from unnecessary peaks against the wall of the market, we will talk about the most common mistakes in crypto currency trading, which are made not only by beginners, but also by experienced stock exchange participants.

Lack of a clear system

The system is a clear and unambiguous sequence of actions in any market situation that makes a profit. Many newcomers to crypto currency exchange trading do not pay enough attention to building their own trading system and forget about the strategy. The most common mistake of novice traders isn’t the absence of the system, but the lack of understanding that the system is necessary.

I understand the market behavior can predict any changes, “I don’t need a system” — we hear it often. You can be a great forecaster and predict the movement of the course, but not being a successful trader. There is one simple reason for this — you buy/sell without any advance trading system. How to understand whether you will be in the bleak? It all depends on how much money you invest. Imagine that you made 5 trades: 3 won, and 2 lost. You won $8,000 but lost $10,000. This happened because of the lack of strategy, clear system and money-management.

Probably, it will be a very offensive hit against the borders, because you predicted it, and it looks like you did everything right, but didn’t succeed financially. So, conclusion is without system, most likely, everything will end successfully.

Lack of system learning

The basics of trading were laid many years ago and remained unchanged for the most part the variability of the crypto currency market makes it necessary to adapt and find new solutions all the time. What is happening in the market begins to resemble memorizing chess positions, when you need to know many moves from the past and remember the development of successful or unsuccessful events in order to understand how the market can react irrationally. By the way, the crypto currency market is irrational and the more you consider it rational, the more you try to understand and learn its habits, the worse result will be.

You should take a certain unknown and learn all the time new tricks that can work today, but not tomorrow.

Many people don’t like it, because it is easier to learn once, and then only to improve, but in the crypto currency trade this won’t work.

Trading on emotions. Human factor

One of the main problems is trading on emotions. Each trader have to make the mark in a prominent place with the rule: “We earn, when we stay disciplined.” When you do everything right, but it loses, it affects you emotionally.

You get upset, angry, become more emotional, and because of this less disciplined and make more mistakes. This is a kind of spiral, that twists until the coins in your pouch don’t stop ringing. Keep your emotions in the box, if you don’t know how to use them.

Yes, emotions can be used correctly. Emotions allow gambling traders to be more efficient. They want to win, and this stimulates their activity. But in general, you need to control your emotions in crypto currency exchange trading.

Here is an example of a common mistake that is made on emotions. Imagine that you bought coin at a high price, and it began to fall quickly. You understand that you lost at this moment, but you don’t want to drop the deposit and fix the loss. You falsely hope for some unpredictable growth. This means that you are acting in a rational way. You should be guided by only one thought: “Is the open position optimal in terms of the ratio of profitability to risk? Does it fit the strategy? ”. If not, cut the rope. On Wall Street there is a saying “The best loss is a quick loss”.

When you are afraid of fixing a loss and sitting in one losing position, you lose the opportunity to make money on another growing trend that can compensate for the loss and make a profit. This behavior leads to a deterioration in your results.


A common mistake even with experienced traders is trading with minimum level of concentration for example overconsumption of alcohol, less sleep etc., In a liquid and stable market, the risk of being punished for inattention isn’t too big. But if you trade in less liquid things, it is very easy to make mistakes in decision making or in mechanics. You can just confuse zeros, for example. You also react slowly to a new situation. Inattention can have serious consequences.

If you feel that you are losing focus, finish your trading session and relax to avoid lame and irrelevant excuses.

Inability or unwillingness to collect and analyze information

It is important to understand one simple truth: successful trading is the collection and analysis of information. Sooner or later, the market will show everyone how poorly understood it is. Imagine that the market is an enraged wild beast, and the only way to cope with it is to collect information about it, analyze and find approaches.

It is important to understand that no tool will give you an accurate result. Understanding that you can do your best, but you can still lose, often gets in the way. Get used to the fact that you will make many mistakes, and this is just part of the process. Your mistakes should be the tip of the iceberg, under which there will be many successful deals.

Investing all funds in one asset

One of the most common mistakes of novice traders is to invest the entire deposit in one asset. Everyone knows that storing all the eggs in one basket won’t lead to anything good. There are always unforeseen risks on the stock exchange and it is better to trade in several crypto currencies, distributing capital according to the principle of an investment portfolio. So, in the event of a loss on one asset, the profit from others will override it.

It is recommended to make a list of the most promising coins in advance, and distribute the shares of capital among them. In the future, you need to regularly review the portfolio, adding new assets to it and removing ineffective ones.


We have listed the main misconceptions and mistakes of traders in working with crypto currency. Carefully re-read the article several times and analyze each item. Let’s be honest, you will have a hard way if you want to devote yourself to exchange trading, and even more so to crypto currency trading.

Remember the basic rules:

  1. Do systematically, think strategy;
  2. Don’t stop learning, you have to change with the market;
  3. Discipline and more discipline, keep emotions under control;
  4. Be extremely careful during the auction;
  5. Constantly collect and analyze information;
  6. Allocate capital to multiple assets.

Learn from the mistakes of others and analyze the experience of others. To do this, be active: participate in thematic communities, chats, forums, try to communicate with people who have succeeded in this field.

Update this list of rules all the time. Successes and capital increase to you.

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