❌Top 4 BAD advices for Cryptocurrency trader❌ | CryptoAlert - EP #2 || Faisal 😎

in #steemit7 years ago

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Top 4 BAD advices for Cryptocurrency trader

While charts can clearly show which trades show which trades are winner and losers, it's much more difficult to assess the value of trader. As a result, there is often bad informative spread, that should always be recognized and ignored.
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"This coin is a good buy because it is cheap"

This is inherently an improper way to evaluate a cryptocurrency, because the simple metric of unit price completely ignores the market cap, distribution, inflation and inception of such cheap coins.

"Don't fall in love with your holdings"

For new traders, yes, it's probably not best to become attached to any single trade. However, for veteran traders who can recognize the merit and potential of different projects, there is nothing wrong with falling in love with a project. If you're a long-term holder, your biggest position should be your favorite, and even one you love

"Buy this coin because it's better than bitcoin"

The fact of the matter is that almost every single newly-created cryptocurrency is better than Bitcoin. It either forks the original code base to facilitate faster transaction, better distribution, or greater scalability, or implement new features that bitcoin does not offer. A coin that is better than Bitcoin certainly does not automatically deserves to someday be worth as much as Bitcoin.

"Listen to what well-Known Traders say"

In fact, a majority of the "crypto personalities" are merely facades. These popular social media profiles are just that - Popular accounts that leverage their own outreach to turn a profit

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its is important to create your rules for investing. Following your rules will lead you away from major mistakes, like rule# 6: Do your own research. or rule #14: take profits.

History is a great teacher, learn from it. Use the knowledge and wisdom from other people's misfortune and turn it to your advantage.

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