If you are looking for a good exchange, look for one with a demo account.
There are several main reasons why money is usually lost when trading crypto.
Nowadays, it seems that everyone is talking about cryptocurrencies and making money from them. Overnight success is not an impossible story in the crypto market. Where there are numerous ways to make money, there are just as many ways to lose it. People often exit the market losing all of their money, from their life savings to house payments, and all it takes is a drop in cryptocurrency prices. But the viewers will not hear those sad stories and the crypto markets continue to boom.
Losing is very common when it comes to such volatile assets. But is losing inevitable? Here are several important reasons to lose money; learn from mistakes and you can come out stronger and wiser.
Lack of understanding of the market
Surely not all of us are “experts” or have some privileged information. But we often make the mistake of relying too much on “experts” without knowing the market ourselves. Is the market highly liquid? Does your cryptocurrency have enough potential? To know when is a good time to trade, you need to know what moves the market. So do your own research.
Lack of business skills.
Are you a good trader? Have you developed your own business strategy? There are many people who have been trading for a year and still don’t know how to read a candlestick chart or use indicators. It is very important for traders to have their own trading styles so that they do not follow the crowd and become emotional. Many exchanges provide tutorials and some even offer a personal account manager full of trading tips for users!
Too much trading, too big positions
Emotional trading is very common. Novice traders often push their limits to chase the highs in hopes of making bigger profits. When the price drops, they are often the quickest to flee the market and lose all hope of getting their money back. Some exchanges and whales have been known to take advantage of such behavior to pump or deplete the market. Not to mention that with every trade you make, you have to pay a fee to the exchange. Be patient and stay in control. Also, always remember to split your money into different stocks as backup plans. Don’t throw away all your money at once.
Forget about setting stop-loss and take-profit
Trading without stop-loss or take-profit is like driving a car without brakes. It is true that we do not like to admit defeat and are too greedy to sell a winning position. But we can’t always be right and win, especially in these volatile markets. Trading is a long-term business and with the right level of stop-loss and take-profit, we can always start another trade.
Novice traders are easily scared and discouraged when the price drops. Cryptocurrencies are volatile, that is why people can make a lot of money trading them. When you invest in cryptocurrencies, you need to have patience and guts to deal with price fluctuations.
Is your exchange the right one for you?
There are as many exchanges as there are cryptocurrencies and many of them are scams or shit. A bad exchange will charge unreasonable fees and simply won’t tell you what fees to pay. Some exchanges, even a famous one like Binance, are believed to manipulate the market or deliberately pull the plug. Worse yet, every year many exchanges close and disappear, taking user deposits with them. Also, the trading engines and rules of some exchanges are so difficult that it takes a lot of time for traders to learn how to use them.
If you are looking for a good exchange, look for one with a demo account. With a demo account You can practice trading strategies, learn to control your emotion, and learn to analyze the markets. Successful traders are those who learn to analyze the market, stay on top of market news and keep trying different strategies. A good demo account serves as a testing environment for you to improve your skills and become familiar with the rapidly changing market.
bexplus offers 100x leverage on BTC, ETH, DOGE, ADA, and XRP futures contracts. And it provides 10 BTC demo accounts. Bexplus is trusted by over 800K traders worldwide, including the US, Japan, Korea, and Iran. With no KYC, no deposit fee, traders can receive the most attentive services, including 24/7 customer support and a personal account manager.
Demo account with 10 BTC for free
When you sign up successfully, you can get the free 10 BTC in the trading simulator, which allows you to practice trading futures contracts without losing money.
Wallet with up to 21% annual interest
Prices go up, prices go down, but the Bexplus BTC wallet it is to protect and increase your assets. If you want to take a break from the ever-changing crypto market, you can turn to the Bexplus interest wallet. Provides 21% annualized interest. That is, if you deposit 1 BTC, you will get 1.2 BTC a year later. Without a doubt, that is almost the biggest interest in the industry.
100% bonus to help you maximize your winnings
Double deposits, double earnings. Users can get a 100% deposit bonus for each deposit in Bexplus. If you deposit 1 BTC, 2 BTC will be credited to your account and any bonus winnings can be withdrawn.
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