As a beginner jumping into crypto trading without trying to know the basis is a very dangerous thing I have seen many people enter into altcoin trading and loose their money out of the window.
Crypto trading is a very risky territory and one needs to be very cautious when trading on exchanges that is the reason why I want to explain to you top five beginner mistakes this where also mistakes I have made I must be honest about that even for experience traders is always good to re-evaluate some of these basis. Without further ado I suggest we go right next into the topic of today.
Following Troll Box Advice: This is a very important one it is a little a chat box that you might encounter on different online exchanges such as poloniex you should never follow any advice people are giving there because they only give advice that is advantageous to them, rather you follow the logic of women which means you should do the exact opposite of what they are telling you. Not in all cases but you should always be critical and think I a different scenario like for example if someone tells you buy something it usually means that they bought at a lower price and they want to increase the profit by raising the price so they want to pump the price secondly it might also be that they bought at a certain price after which the price dropped and they just want the price to rise again so that their loss become smaller and whenever they tell you to sell something it means that they want to buy the coin cheaply because they think the price will again rise so never trust anyone on the troll box only trust yourself.
Buy the News Instead of the Rumours: Whenever there is a rumours like for example it's almost time for consesors 2017 it's a big event around blockchain so people are getting excited the rumours is spreading and then you see that people are buying and the price is rising but when the news actually comes or the news is incorporated in the price and people take profit yet you still buy at the moment the news is out you might run at loss so it's good to keep this in mind don't buy too late.
Fake Buy Walls & Sell Walls: This is something that whale do a whale in the crypto scene are people that have enormous amount of coin what they do is they put a very big order under the current price and when people look at the order book they say woah! 😨 such a big order the price will surely pump and people start buying on the sell orders and when the price actually rises the whale start selling the amount of coins he already owned without buying any in the reality so you have to look out for that as well.
Buying Coins Immediately After Release on Exchange: With All the ICO (Initial coin offering) that have been going on that like sell out in fifty minutes people are very greedy when even a coin is released on an exchange early ICO investor look to dump their coins quickly on exchange and makes short term profit on their investment they try to sell at double, triple the ICO price so as don't always try to buy the coin that are been released first on exchange always look up for the ICO price and determines what correct price is for you.
Not Recognizing Pump and Dumps: Pump is actually when all people are buying prices rises and dump is when the people have accumulated alot of coin and all of their coins so you should always be weary of coins that has no value, no future, not a proper developer's team around it. A coin that is hype everywhere like on reddit, twitter, and troll box without any fundamental reasons you have people pumping the price spreading rumors and then suddenly the people who have lot of these coin just sell them and people who bought just loose their
