Cryptocurrency trading or investing is a psychological battle against yourself. Investing in traditional markets, according to stock dealers, necessitates a high level of mental discipline. When the market is volatile, they use that discipline to keep themselves in check. How they stay on track with their approach and avoid making wrong decisions. If regular trading necessitates severe discipline, crypto trading necessitates mental fortitude. The crypto market is more volatile than any other market in history.
Learning how to buy bitcoin in India is easy, but investing and trading bitcoin and other crypto-assets is a strategic ball game. Investing in Bitcoin and other cryptocurrencies is not the same as trading stocks or bonds.
Bitcoin is still a relatively young investment option. As a result, it’s all too simple to make blunders or make the wrong movements in the market. However, as any investor knows, mistakes must be made along the road. They’re an essential aspect of the investing process.
Making a mistake won’t ruin your life. There are options for minimizing or reversing the damage. That is especially true in Bitcoin, where the asset’s continuous price movements indicate that a change of fortune is just around the corner. We’ll look at various investing tactics to help you reverse bad trading decisions.
Mistakes in Investing
The first huddle for crypto investors is finding a trusted platform to buy bitcoin. It is important to invest in bitcoin, a trusted and secure platform like Remitano. Apart from being the safest platform to trade, Remitano allows users to create a crypto wallet in less than 5 minutes to begin their investment journey.
Now that the problem of a trusted investment platform is out of the way, let’s start with an explanation of what constitutes a poor investment decision. These are trading moves that have lost or are losing money in the context of this article. There could be a variety of reasons for this. For example, if you buy Bitcoin in India at the peak of the market and the trend is reversing or there is a general market crash, and so on.
Do Not attempt to catch the exact bottom.
It can be a good moment to build your portfolio if you’re lucky enough to have some of your investing funds in fiat or BTC when the market falls. Market corrections are what I call “Crypto Flash Sales.”
When you’re staring at a coin chart and wondering when it’ll stop falling in value. You’re attempting to grasp the bottom. Attempting to enter a trade at the bottom of a downtrend is known as “catching the bottom.” Catching the exact bottom of a transaction is exceedingly challenging. It’s so tricky that it’s dubbed “grabbing a falling knife.” You’re more likely to miss out on transactions if you’re continually trying to catch the exact bottom.
Hedging Bitcoin is one of the most effective tactics available. It can be begun before or after you choose to buy cryptocurrency in India, depending on whether or not the person already holds Bitcoins. These can be started since there are signals that Bitcoin’s price may reverse shortly. Hedging is entering into strategic deals to balance or eliminate losses resulting from an asset’s price decline. Shorting the price of Bitcoin is the most common strategy to achieve this hedging. A short is when you sell a coin at its current price and then buy it when the price is lower. Contracts for the Difference are among the most common financial instruments available to short sellers (CFD). They’re a type of derivative that doesn’t require you to own the underlying asset, such as Bitcoin, so you can buy them even if you don’t have any. Hedging is becoming a hazardous approach. If the price of Bitcoin rises, the losses from a short position can quickly mount and can even be worse than price depreciation losses. As a result, it is a strategy for experienced traders who are well-versed in the market.
Don’t exchange your coins for ones that are increasing in value.
It’s been done before. You don’t have to feel embarrassed. It’s only natural. People have sold at the bottom of a downtrend just to see it reverse and soar skyward seconds later. The Fear of Missing Out (FOMO) is a prevalent fear that leads to poor trading decisions.
FOMO is when traders feel they will miss out on something big and immaturely buy an asset. FOMO creeps in when brands, project owners and investors build hype for a project by tweeting and sharing inciting content on social media about the project.
They use the hype to pitch their cryptocurrency as the next Bitcoin and how the price will keep soaring. This persuades investors, mostly newbies, to invest irrationally.
Never follow the hype, analyse facts. Your crypto investments decisions should be based on logic and not emotion.
A forward-thinking exit plan
Another strategy for reducing the danger of losing money is to depart the market gradually. A one-time exit can compound losses in a single trade, but a trader can reduce losses by selling portions of positions at multiple price goals. This is especially true because markets do not always move in straight lines. However, this is a time-consuming method. A trader must be sure of the price targets and be ready to sell at the appropriate periods. This is because Bitcoin’s volatility is such that price fluctuations are far faster than in other asset classes. Even if a trader uses a bot to program the price goals, the risk still exists because the price can move faster than the original projection. That is why understanding how to implement an exit strategy and continue monitoring the market are crucial to successfully departing Bitcoin with minimal losses.
Bitcoin Investment has a far higher risk than investing in traditional assets. However, with that risk comes the possibility of a large payout. While learning how to buy Bitcoin in India, do the due diligence.
It is exciting to know that Remitano is offering a coin-back policy for both new and current crypto users on the platform. With each coin swap transaction on the exchange, users have the opportunity to receive a refund of up to thousands of dollars and a series of special incentives
There are many risk-free ways to make money in the crypto niche and one of them is through Remitano. Remitano crypto exchange is allowing crypto enthusiasts in India to earn free coins by mining RENEC on their mobile phones.