The 5 Biggest Crypto Trading Blunders and How to Overcome Them

It goes without saying: the crypto market is filled with excitement and opportunities because it’s a great avenue to make profit, but it’s also full of risks and can be unforgiving. 

In this article, we’ll help you become a better trader by mentioning the top 5 biggest crypto trading blunders that traders fall into and the ways through which you can avoid them. 

However, if it still seems too much for you then don’t worry because in the end, we’ll mention AlgosOne, an AI-powered trade automation bot that successfully trades on your behalf and grows your portfolio risk-free. 

Top 5 Crypto Trading Blunders

Following are the top five most common mistakes traders make and how you can avoid them: 

1. Lack of Practice and Experience 

Oftentimes traders start their trading without any experience, and even if they have experience, they’re not emotionally ready for how volatile cryptocurrencies can be. For reference, Bitcoin has seen a price decrease of about 75% on three separate occasions within its 16-year lifespan. 

Therefore, it is absolutely necessary for crypto traders to practice trading, which they can do through Paper Trading. Experience firsthand how the market reacts during different trading seasons, develop a solid strategy that works for them, and only then get started with real money. 

2. Ignoring Risk Management

One of the major cornerstones of successful trading is risk management. Traders become either too comfortable with their strategy that they do not consider risk management at all or they put all their faith in the market and expect it to move in the direction they want it. 

With sheer luck, it may sometimes work in their favor, but the majority of the time, it leads to massive losses. That’s why risk management is absolutely vital in crypto trading. A simple rule is to never risk more than 1 to 3% of your capital on any single trade. Always use stop-loss and take-profit levels to ensure your gains are secured and losses are minimized. 

3. Overtrading

Many traders often believe the more they trade, the more profit they’re going to make. Falling victim to overtrading is most common when trading cryptocurrencies since they operate 24/7, and traders believe this gives them a higher chance to make more money. Unfortunately, more often than not, such traders end up as losers as they pay higher fees and make emotional decisions. 

To overcome this, traders need to ensure they do not commit to rash and undisciplined behavior. Rather, they have a well thought-out trading strategy. 

4. Chasing FOMO or Trading Impulsively

In the world of cryptocurrencies, many traders end up losing money because of FOMO or Fear Of Missing Out. They see the price of a particular coin rising at an exceptional rate and immediately rush to buy it. In reality, they end up only buying when the price is nearing its top.

As a result of their impulsivity, they end up experiencing massive losses. This is why sticking to your original trading plan is extremely vital. 

5. Failing to Learn and Adapt

Since the markets are constantly moving, strategies that are working today may not work tomorrow or be as effective as they once were. Many traders end up losing more because they fail to invest time in learning or adapting to new market conditions. 

Therefore, it is necessary to consistently educate yourself through the help of books, guides, and online courses. 

AlgosOne – Future of AI-Powered Trading

What if we tell you there’s a way to make successful trades on your behalf and grow your portfolio without any risk involved? That’s exactly where AlgosOne comes in, which is a cutting-edge AI-powered trade automation bot that successfully executes trades on autopilot without human intervention. 

The trading bot utilizes advanced algorithms and machine learning technology to analyze millions of data points in real time, empowering it to identify the next big opportunity automatically. 

With a success rate of 80%, AlgosOne is a reliable tool for anyone looking to trade smarter and safer. Here’s how AlgosOne avoids making any blunders while trading cryptocurrencies:

Data Analysis

First, AlgosOne’s trading bot scans the market 24/7. It tracks price movements, whale activity, news, and social media sentiment. 

Trade Recognition

Second, when AlgosOne’s bot recognizes all trade indicators are aligned, only then it makes a trade. Which ensures trades are not based out of FOMO nor they’re over done. Moreover, since everything is handled by AlgosOne, this is why users also do not have to spend hours learning how to trade. 

Risk Management 

After finding a potential trade opportunity, AlgosOne recognizes where to place a take/profit and stop/loss order. It also analyzes if 5% of a user’s portfolio should be traded or a maximum of 10% in that specific trade. 

Consistent Evolution

Lastly, AlgosOne’s bot consistently updates itself. It follows some of the world’s top traders and market trends, which allows it to update its trading strategies on the spot and discard the ones that are outdated. 

Conclusion

While the cryptocurrency market offers immense opportunities, traders can only be profitable as long as they’re able to avoid common mistakes including overtrading and FOMO. By managing your risk, and consistently upgrading your strategy, you can make the most out of cryptocurrencies. 

However, with AlgosOne, you don’t have to worry about anything as it makes successful trades on your behalf while you get to carry on with your day. 

If you’re ready to take your crypto investments to the next level, sign up for AlgosOne today and grow your portfolio risk-free!