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How to avoid losing money in Crypto.

We understand the benefits of trading in Crypto as it can earn you great profits in a quick period. But it also comes with a great risk if not executed properly. 

If you trading in Crypto with high investments without having a proper strategy, it can cost you the loss of the total amount. 

In this article, I am going to tell you some steps following which you can avoid losing money in Crypto trading.  

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#1. Learn to trade crypto using a demo account

While investing for the first time, New investors often use popular cryptocurrency trading platforms to multiply their investments. However, when we don't have any idea and experience about trading crypto and for any game plan, we like to maintain distance against this.

If you don't have any idea about or any experience on how to trade on crypto then it's a better alternative for you to use a demo account for learning how to trade crypto before investing or depositing any fund.

You can use eToro and plus500 to get your free demo account where you get a user-friendly CFD platform to learn about how to trade crypto. Here you get features for developing your crypto strategy and use them over and over to test your strategy without suffering any money loss.

Here it is confirmed that if you don't learn how to invest or trade crypto then it's likely that you lose or don't get any profit while trading with a real account.

In this way, when you learn to trade, your investment is safely added to your crypto hardware wallet.

Nowadays, new users get familiar with publicized statistics which results that 95% of them suffer loss. 

#2. Keep it simple

Nowadays, there are many new traders in the market who are attempting to trade the crypto markets to earn additional Bitcoin profits.

They started using their trader's brains very much like they seem to be doing very much, they think a lot, keep looking at the chart every time to time, micromanage their trade too much, take risks more than they have, and so on

Their behavior shows that they won't have any trading plan or experience. This ends up losing their money on crypto margin platforms.

If you are among them who do like this then stop yourself doing like this. Why do you not get some benefits from taking lessons from those successful investors and traders who spend most of their time on the sidelines where they wait for the right opportunity and keep analyzing the markets.

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#3. Reduce position size and leverage

Using incorrect position sizing is considered as the most common trading mistake. Under this, the use of high leverage on margin trading exchanges by new traders results in compounding.

Traders having experience can capitalize on the small price swings in the market. They use high leverage on exchanges like FTX and many more.

As we know, the crypto market must be very volatile, in which the higher the leverage amount means the closer the liquidation price gets to your position.

For low experienced traders margin trading is just like gambling in which you get more fun while playing a slot machine that offers you some fancy graphics and sounds but it is swallowing your money.

If you are going to just start the margin trading then you should reduce the amount of leverage. In this, risk a maximum of 1% of your capital on each trade, and don't forget to use a stop loss.

#4. Be patient and don't force trades

By using a market order, rushing into a trade position is one of the biggest mistakes made by us while trading.

Paying a premium in trading for executing the market's order is one of the greatest mistakes done by the new users. because it is the worst entry point where you can suffer another loss because the price can immediately reverse.

You get to suffer from FOMO when the prices move quickly and during this, you feel the urge to jump into a trade.

While trading in the crypto market, every trader must have remembered that the market is open 24/7, So don't panic when you miss any trade setup. Keep calm and wait for the next opportunity. 

You always get another opportunity in the market where you have preserved your capital. whereas, on a daily or weekly time basis, it becomes very frustrating for the swing traders.

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#5. Keep a journal of each trade and improve

Hope you have ever heard this famous phrase:- "bulls make money, bears make money, pigs get slaughtered?" This is dedicated to greedy traders, this means pigs are greedy so don't get slaughtered. This is a warning for those traders who have a desire for greed and don't have patience in the market. 

They have to control their emotions which are caused by:-

• Over expectations
• Self-willed ego
• Having a strong belief in the market trend
• Always engaged in any trade for profit

If the above points describe you well then you are also trading like a pig and in the end, you will lose your money or investments.

If you have a strong mental discipline, focus, and as well as solid risk management practice then you are suitable for trading crypto or investing in traditional markets.

A great business magnate Warren buffet mentioned in his words that "the critical determinant in an investor’s success is not intelligence or skill but temperament.” 

When you don't have the temperament and strict discipline then you are trading like a pig, without this you are just playing gambling with your crypto. As we know if you trade like a pig, instead of getting any profit you will lose your 

Money and never going to succeed as a crypto trader. 

It's very difficult to have the perfect temperament and discipline for becoming a good profitable crypto trader.

Conclusion :

Following these tips will help you trade safely in Crypto without having the risk of losing money. 

These tips have been taken from the best UK traders who have been earning the highest profits possible in the market.