Are you considering the trading cryptocurrency, but are a complete beginner and afraid to make mistakes? In this article, you’ll learn about the top three errors newbies make when trading cryptocurrency.

There are multiple variables that go into making a successful trade and knowing what to avoid is crucial to making a profit. You’ll still need to find out a winning strategy, but having the knowledge of trading tips to avoid will put you above most people.

Read onwards for the 3 cryptocurrency trading mistakes to avoid. 1. Not Using Cryptocurrency Exchanges Properly

The biggest mistake beginners make is not using the cryptocurrency exchanges properly. The bigger platforms give you methods of making money easier from staking the margin trading. Before you start using these methods do your research because otherwise, it can come back to bite you.

Margin trading is a brilliant way to make more money because you can buy more coins even if you have a minimal budget. Margin trading lets you borrow money from the exchange with your assets as collateral.

Therefore, if you have good information that a coin is most likely going to increase in price over the next few days you can do a margin trade and borrow 10x your budget. However, note it’s never guaranteed for a coin to go up in price as the market is so volatile.

2. Trading with No Plan in Place

One of the most common mistakes traders make is not knowing when to pull out of a position. When selecting a coin it is pivotal to have exit prices so even if the price falls you make money or at the least break even. Also, when establishing a trade have a stop-loss set because the cryptocurrency market is volatile with 5-10% price changes is not uncommon.

3. Starting with Real Money Before Paper Trading

Trading is a skill that you’ll need to learn through experience and the best method is using fake money. This way you’ll through your mistakes and see what to avoid when looking at coins and executing trades. Once you see that you are making a profit constantly, you can then consider using real money.

Keep in mind that the cryptocurrency market is not going anywhere anytime soon so don’t FOMO and execute trades since you can risk losing money as you won’t have the necessary skills yet. A good length of time to train yourself is at least 2-months or when you have successfully completed 100-trades.

Final Thoughts

The 3 cryptocurrency trading mistakes in this article are a small taste of the information you should learn over your trading career. As mentioned, start with a paper trade account since the best method is going through the process and making mistakes as you go along.

So, what are you waiting for? Start by learning what to avoid when trading. Create a paper trading account, taking action is the best way to learn as you get a taste of the environment you are going into.

Source: https://coinpedia.org/press-release/cryptocurrency-trading-mistakes-to-avoid/

Bitcoin Price Rally Expected to Flip Soon!!

The bitcoin price rally that fumed into ashes by smashing the levels below $47,000 indicating a massive correction, may revisit the similar levels soon. However, the continued bull run of bitcoin price cannot be ruled out completely, yet the timeline remains the prime focus.

The BTC price does not appear to be ready for a great bull run according to an analyst Micheal van de Poppe. According to the analysts, the price may retest the levels close to $55K else if it fails to hold at $47k, the price may plunge as low as $38K too.

On the contrary, the institutional investors may have accumulated more bitcoins at the dip as weak hands just let off their share. According to Ki Young Ju, CEO of cryptoquant, an analytics platform, nearly 13K BTC flowed out of Coinbase to multiple custody wallets.

This is speculated as the biggest bullish signal ever in the history as the speculation of the accumulation by institutions heated up amid MicroStrategy announcing more bitcoin purchases. The company bought nearly $1 billion worth bitcoin with a total of 90,531 BTC worth $4,492,274,963 with an initial investment of $2,171,000,000 as per Bitcoin Treasuries.

Will Bitcoin Flip the Bearish Momentum?

The BTC price currently has experienced multiple rejections at $51,000 and hence these levels tend to become strong resistance levels. At present, the price is attempting very hard to sustain above $50,000 manifesting the bulls sweat yet the bears tend to bring the price down below $50K.

The recovery after two consecutive dips manifests the strong bullish momentum being mounting, and the consolidation after breaking the ‘W-shaped’ pattern indicates a major breakout may be approaching very soon.

At the time of writing, the Bitcoin price is $50,484 with a jump of just 0.08% in the last 24-hours, however, the price gained a bullish trend after a 4.15% dip in the past seven days.

Currently, the prime focus would be to sustain strongly above $50,000 and head towards the next resistance levels above $51,000. Worry lies around the support levels at $47,000 that may hinder the bitcoin price rally.

This is speculated as the biggest bullish signal ever in the history as the speculation of the accumulation by institutions heated up amid MicroStrategy announcing more bitcoin purchases. The company bought nearly $1 billion worth bitcoin with a total of 90,531 BTC worth $4,492,274,963 with an initial investment of $2,171,000,000 as per Bitcoin Treasuries.

Source: https://coinpedia.org/news/bitcoin-price-may-flip/

Huge Liquidations, Will the Market come back

The Bitcoin price is experiencing a huge drain out since the early trading hours and the main reason behind the plunge is said to be the liquidations. The plunge is historic because the liquidations recorded are the highest in the history of bitcoin.

According to an analytics platform Bybit, nearly 474,968 traders have liquidated nearly $4.4 worth of bitcoin in the past 24 hours.

The liquidation is expected to continue for some more time which will decide the upcoming leg of BTC price. Moreover, according to a data analytics platform Skew, the crypto market underwent a second batch of liquidation where-in nearly $1 billion bitcoin longs were liquidated in the last three days on Binance alone.

Where will the Bitcoin price plunge lead to?

The pumps and dumps are an integral part of the Bitcoin bull run. This is not the first time BTC price is witnessing excessive drain out. Apart from the 2018 bitcoin crash, many plunges have been included in the BTC price rally above $58K.

Considering the very recent drop, the first time ever when Bitcoin price smashed the levels above $40K, forming a new high at $41,309, massive selling pressure was mounted that slashed the price close to $30,000 in just a couple of days.

However, further price movement became the talk of the town and gained mainstream recognition when the BTC price smashed the $50,000 barrier. Moreover, the formation of ATH above $58,000 at $58,330 was like icing on the cake.

Therefore as said by an analyst, That Martini Guy B, the current dip from above $58,000 to less than $45,000 is similar to the Bitcoin price dip from $42,000 to $28,000.

Source: https://coinpedia.org/bitcoin/btc-longs-liquidated-on-binance/