Crypto Trading Strategies for Beginners, Don't Do This!

Bittime - Crypto trading can be very profitable, but there are high risks, especially for beginners. Here are some strategies to avoid to avoid big losses.

Don't Focus Too Much on Return on Investment (Break Even Syndrome)

Many beginners are trapped in "Break Even Syndrome," namely the obsession with returning capital after experiencing a loss. 

You may be tempted to wait for the asset price to return to baseline before selling it. In fact, this can hinder portfolio growth. Don't just focus on return on investment; also consider the potential long-term benefits. 

When the asset price falls, instead of selling at the break even price, consider adding to the position at a lower price to improve the average entry price.

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Avoid Overtrading

Overtrading is a common mistake made by many novice traders. Carrying out transactions too often without clear reasons or simply because of emotional impulses can cause big losses. 

Every transaction must be based on solid analysis and a mature strategy. It is important to control the urge to constantly be in the market and understand that sometimes, the best course of action is to do nothing.

Don't Ignore Stop Losses

Stop loss is an important tool used to limit losses. Many beginners ignore the use of stop losses because they are too confident that the market will turn around according to their expectations. 

However, without a stop loss, you could lose most or even all of your capital if the market moves against your position. Always set a stop loss for every position you open.

Jangan FOMO (Fear of Missing Out)

FOMO is a phenomenon that often occurs among novice traders, where you are afraid of missing out on opportunities so you buy assets when prices are rising high. 

Buying assets when euphoria is high can be risky, as prices may drop suddenly after a spike. 

Ideally, make a clear trading plan and stick to technical and fundamental analysis rather than following the market emotionally.

Don't Forget Risk Management

Risk management is the key to success in trading. Never risk all your capital in one position or one asset. 

Diversify your portfolio and limit risk by only investing a small portion of your total capital in each transaction. This will help you survive unexpected market fluctuations.

Don't rely too much on margin trading

Margin trading allows you to borrow funds to increase your trading position, but also increases the risk of loss. 

Beginners often don't realize how quickly a margin call can occur, where you are forced to add funds or close a position at a large loss. 

It's best to avoid margin trading until you really understand the risks and have a solid strategy.

Conclusion

Crypto trading can be very profitable, but it also carries huge risks, especially for unwary beginners. 

By avoiding common mistakes like those mentioned above, you can increase your chances of success in the crypto market. Remember to always learn, stay calm, and don't let emotions control your trading decisions.

How to Buy Crypto on Bittime

You can buy and sell crypto assets in an easy and safe way via Bittime. Bittime is one of the best crypto applications in Indonesia which is officially registered with Bappebti. 

To be able to buy crypto assets on Bittime, make sure you have registered and completed identity verification. Apart from that, also make sure that you have sufficient balance by depositing some funds into your wallet. For your information, the minimum purchase of assets on Bittime is IDR 10,000. After that, you can purchase crypto assets in the application. 

Learn How to Buy Crypto on Bittime.

Monitor price chart movements of Bitcoin (BTC), Ethereum (ETH), Solana (SOL) and other cryptos to find out today's crypto market trends in real-time on Bittime.