5 Common Crypto Selling Mistakes

Cryptocurrency gains always attract investors. These investors increase the amount of money they have staked in the market because of gains. But only a handful of these investors will generate profit from their investors. This is because of inexperienced investors make mistakes that are otherwise “easily avoidable”. Tragically, many investors end up losing money. Others decide to cash out following a discouraging loss.

Common Crypto Selling Mistakes

1. Buying When the Market is High and Selling When Market is Low

At the top of the list is buying high and selling low and forms the most common crypto selling mistakes. This mistake gets traders and investors “rekt”, in that they end up in financial ruin. This is when a trader suffers a hefty loss following a collapse in value for their investment. The volatile nature of crypto balances the scale between gains and losses. In the same way, large gains are very risky. During selling or buying, it may be impossible to make accurate speculation of the market. However, there are certain obvious patterns that a trader or investor must follow. This helps them maximize gains and reduce losses.

2. Following one-sided opinions

There is also the mistake of selling after hearing opinions from a particular side. One-sided opinions have not been challenged and it would be a mistake to go by them. A good decision to sell crypto must be made after giving some consideration to the opposite side. This is regardless of whom the source of information is- diversifying informational channels. Diversification saves a trader or investor from making a very bad decision. At the same time, you get more confidence when you have weighed both options. One-sided opinions are like leaving yourself unprotected on one side. This state leaves you vulnerable to attacks.

3. Not having a plan

The absence of a plan for a crypto trader or investor can be very dangerous. In this regard, one will be swayed by different winds in the crypto market. As a player in the crypto arena, you must have a plan about how much money you intend to make. You must also know the duration you would want it to take. You must also plan about the amount of risk that is acceptable to you. A plan will help you decide whether to trade for the short term or the long term. A plan is an investment strategy. Having one will help determine how much value your investment achieves in the end.

The absence of a plan also extends to not having a portfolio that is adequately diverse. It is also tantamount to choosing to invest in many different coins at once. Your portfolio’s contents depend on your plan as a trader or investor

4. Selling out of emotions

Successful and failed traders are easy to distinguish. This is by looking at how they handle emotions in different market scenarios. Buying links to emotions of greed. Fear is the emotion that drives traders to sell their cryptocurrencies. It happens when a seller sees the market collapsing and runs to sell their financial assets. The motivating factor here is the need to cut down their losses. This drives them to sell at a throw-away price hence heavy losses. When selling, make sure that your decision is made rationally without attaching emotions.

5. Not taking profits at the ideal time

A good trader can identify the right to exit the market and when to hold. This protects you from losing your profit. Make sure that you collect your prices at the rate time. To do this, study the market so that prices do not rise immediately after you have sold. Be skillful enough to beat the market. One of the ways to do this is selling in stages as opposed to selling all your coins at the same time.

Not every seller knows the basics of market analysis. Some of the ones who do, fail to give it the significance it deserves. Price is irrelevant compared to market capitalization. This is a fundamental principle in crypto market analysis. Market capitalization defines the price an asset holds multiplied by its supply. A wise seller considers the market cap of a coin instead of its price at that moment before deciding to cash ou

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