What's stopping beginners from making a consistent income from trading cryptocurrency?
❌ Make money with cryptocurrency will take a lot of time and consistent effort.
Well, unlike the professional investors, most beginner traders learning to trade aren't a full-time trader to immerse themselves in the markets
That means they don’t have enough time to get themselves to the level where they can trade like a pro.
❌ You have no clear trading strategy.
Ask yourself a question: "What is my trading strategy?". If you answered: “Strategy? Well, I simply bought and waited in hope, so was that considered a strategy? ”. Now we need to talk.
If you do not have a clear trading strategy, whether it is based on technical indicators or basic data on crypto assets, or based on technology (algorithmic trading), then certainly there is very There are many potential problems that you may encounter.
However, first, you need to better understand yourself and your trading style. Digital assets are one of the most volatile assets these days, but at the same time, basic blockchain technology creates an opportunity to become richer in the future.
❌ You blindly hope to recover
The blind hope of a rebound or Bullrun is something every trader has experienced at least once. That's why you will see repeated reminders in investment documents that, "What happened in the past is not an indicator of future price movements."
Indeed, there is a difference between technical analysis and staring at the screen and chanting "Bitcoin will reach 21,000" until that happens.
❌ You are averaging your position during the downtrend
Another problem you might find in the bear market is the average of the downtrend, or in other words to engulf you in the market. Some altcoins are considered promising, or real prospects, but stop and ask yourself why you keep hanging around this coin and can't get out.
Buying when the market is falling is a good way to buy low, but you also need to sell as soon as it feels right, or maybe you will have to see the currency's decline even deeper before it shows. any profit.
You probably know that some people can buy A for 100, the price falls to 80 and still doesn't cut losses as previously thought, and then to 60 people who hope that the market will return, spend money, buy in to hope you're in an "average" position and reduce losses. Then it goes down again and you become panicked.