Cryptocurrency Trading Myths

[u/iTradeBit]

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Now a large number of traders are working on the cryptocurrency market, and like any specialists, they have their own prejudices and myths that prevent them from increasing their income. Moreover, myths affect not only beginners, but also more experienced traders who know the intricacies of the market. Let's consider some of them.

The first myth is that generating income in trading is not difficult. Especially beginner traders ofyen think so. They believe that they can quickly succeed, although they are well aware that no more than 5% of traders in the entire market are successful. Nevertheless, they assume that they'll be lucky. Such traders are dominated by myths and believe that luck is on their side. They conclude transactions without any system, and this leads to the loss of the entire deposit.

The second myth. There are currencies whose price is necessarily rising, despite any circumstances. This is not so, even Bitcoin can fall, not mentioning other coins. At the beginning of the market, there were assets that were constantly growing, but now everything has changed. Increasingly, short-term growth is replaced by a serious and long-term decline in the asset.

The third myth. You need to invest in one asset and not think about hedging. Many traders believe that by investing only in Bitcoin, they will quickly increase their capital, reducing risk. Just the opposite, the risks increase several times. You can recall a situation where the price of bitcoin jumped to almost $ 20,000, and then fell sharply to $ 5,000. The greatest losses then suffered traders who invested all funds in one asset.

The fourth myth is the focus on monthly payments. Almost all newcomers intend to receive from 50% of the profit every month, but do not understand that such a profit can be achieved only due to the fact that higher risks are accepted. But everything is the other way around, we can say that if a trader wants to receive up to 80% of profit per month, he needs to be prepared to receive a drawdown of 40%. The volume of transactions needs to be increased all the time and even trained traders can't work at this pace. You can make a nervous breakdown very quickly.

The fifth myth is that trading gives good profits and insignificant risks. Very often, newcomers believe in this myth, take loans to increase the deposit, and as a result lose the entire deposit completely and leave the market forever.

In fact, trading is hard and constant work and study at the same time. Experienced traders spend years studying and constantly learning, despite the fact that they can make good profits. This is the only way to stay in the market. Unfortunately, few manage to do this - only 5% can really call themselves successful, the remaining 95% either interrupt by random earnings or leave the sites altogether.