Looking to expand your crypto portfolio or invest in crypto the very first time? When it comes to cryptocurrencies like Bitcoin, most people worry about scams, while others fret over the lack of basic information.
Crypto traders in UAE – especially millennials familiar with digital money, digital media, and digital friendships – are actively buying Bitcoin or hoarding meme tokens, like Dogecoin and Shiba Inu. Usually, they use the crypto exchanges like BitOasis, the largest and most trusted cryptocurrency platform in the MENA region, which offers over 20 cryptocurrencies.
Many traders have been able to lock in gains when Bitcoin recently surged at new all-time highs, but most people assume that making money from trading crypto-assets is a matter of luck.
Actually, trading and investing in crypto depend more on strategies and analytics. But, those who are new to the crypto world and find price charts intimidating can still succeed and get better short-term returns from their crypto investments by avoiding these “noob” mistakes.
There are four typical beginners’ mistakes to avoid while trading crypto.
1. While buying crypto
Beginner traders are usually buying a cryptocurrency when everyone else does, especially when the price is high. But, you may have to “hodl” the crypto long term before earning returns on such high purchase prices. So, is there a right time to buy crypto: the price of coin and most other crypto-assets typically plateau after a new all-time high due to massive sell-outs. Such situations often present good buying opportunities, especially for new investors.
2. While adding stop loss
To exit a trade at the right time, some traders restrict their losses and manage risks better by setting a limit, which is usually the same as the purchase price. Adding a wide range of stop-loss orders can mitigate emergencies like a sudden drop in a crypto’s price. Most often, beginners find it easy to rely on daily closing prices to exit a trade rather than having hard stop losses.
3. All-in bet on one coin
Profi traders usually maintain a diverse portfolio and invest in a variety of crypto assets instead of buying large amounts of a specific coin. Diverse investments minimize losses and usually cushions traders from sudden price crashes. Also, crypto beginners should keep in mind this adage: while buying crypto, invest only the amount that you are ready to lose.
4. Beware of convincing scams
The crypto economy has had a lot of cautionary tales concerning scams. For instance, one occurred last year: victims who fell for a deceptive email request to update their wallets reported that they lost all their funds to a scammer. So, scammers often rely on new technology and social engineering to convince traders and cheat them of their fiat and crypto assets. For example, offenders could impersonate famous crypto influencers, while others have deceived people with fake crypto projects.
If you run into some new crypto coins and protocols that attract you, try to follow its social media and hear what others are saying. Always do your own research and follow the latest crypto news. If you suspect a crypto fraud, reach out to crypto abuse portals and flag the projects online. Finally, most crypto traders have teething problems in the beginning. But with more guidance and awareness about this new economy sector, those interested in crypto assets can always learn to trade safely.