5 Crypto Day Trading Mistakes That You Should Avoid

In the volatile market of cryptocurrencies. Some investors prefer swing trading for quick profits. It's understandable since the initial listing of some tokens on big exchanges such as Binance is often followed by pump-and-dumps in a fast pace.

1. Not reading the whitepaper of a certain coin.

Reading the whitepaper of a certain cryptocurrency is a must for every investor. The technical details of these whitepapers explain the fundamentals and practical uses of a particular coin. It is also a way for a person to tell if the coin is worth investing or not. Did the coin pioneer a certain advancement of the blockchain technology? Or just another shitcoin for pump and dumps? You can read it all in the whitepaper.

1. Not checking major events of a particular crypto or token.

Main net launch or hard forks can cause prices to surge or dump madly. It is expected. So a day trader should download an app like Bitcoin Price IQ or Coinmarketcap. Failure to keep an eye on the news of certain coin can cause FOMO and may cost you huge losses in your portfolio.

1. Constantly checking your portfolio and staring at it for hours.

Well, this one is a symptom of crypto addiction. Constantly checking your portfolio may trigger some irresponsible or risky day trading moves that can only cause losses. There is an exception for this mistake. It is necessary to constantly check the price of a newly listed coin on a big exchange. Massive pump and dumps happen during these initial listings.

1. Not diversifying enough and tend to put all eggs in one basket.

Diversify or Die. This phrase should be remembered by all day traders. It is advised to hold the Top 10 coins by market cap and day trade volatile shitcoins for quick profits. Putting all eggs in one basket can only cause massive losses. The recent pump and dumps on the XVG/BTC and BCN/BTC trading pairs in the past month should serve a lesson. Not diversifying is like gambling

1. Forgetting the Stop Loss Function

Well in relation to the previous entry, this one is the most dangerous mistake day traders often commit. Forgetting about the function of STOP LOSS. Set trading targets/price ceilings and losses will be avoided. Unfortunately, stop loss function of Binance is not yet available on the app version. So set it while on your PC.

May these day trading mistakes teach you something all about the volatile nature of cryptocurrencies. The entry-level activity of exchanging fiat to crypto vice versa in wallets were proven to be less profitable compared to putting your coins in crypto trading platforms such as Binance,Kraken,Bittrex and many others