(MENAFN- Khaleej Times) When it comes to cryptocurrencies like bitcoin, most people worry about scams, while others fret over lack of simple information.
But, this hasn't stopped crypto traders in UAE from buying bitcoin or hoarding meme tokens like Doge and Shiba Inu, especially when digital money has become innate to millennials, like digital media, and digital friendships.
Moreover, with bitcoin at new all time highs, professional crypto traders have been able to lock in gains, but most people assume that making money from trading crypto-assets is a matter of luck. In fact, trading or investing in crypto depends more on strategies and analytics. But, there's still hope for those who are new to the world of crypto, and for those who find price charts intimidating. For instance, avoiding these trademark“noob” moves can help beginners get better short-term returns from their crypto investments.
Five mistakes to avoid while trading bitcoin
1.While buying bitcoin:
Sometimes traders can be compelled to buy (even a fraction of) bitcoin when everyone else is, especially when the price is high. But, you may have to 'hodl' the crypto long term before earning returns on such high purchase prices. So, is there a right time to buy bitcoin: The price of bitcoin and most other crypto-assets typically plateau after a new ATH due to massive sell-outs. Such situations often present good buying opportunities, especially for new investors.
2.While adding stop loss:
To exit a trade at the right time, some traders restrict their losses and manage risks better by setting a limit, which is usually the same as the purchase price. Adding a wide range of stop loss orders can mitigate emergencies like sudden drop in a crypto's price. Most often, beginners find it easy to rely on daily closing prices to exit a trade rather than having hard stop losses.
3.Going all-in to buy bitcoin:
Most professional traders maintain a diverse portfolio and invest in a variety of crypto-assets, instead of buying large amounts of a specific coin. Diverse investments minimize losses and usually cushions traders from sudden price crashes. Besides, bitcoin beginners can consider this crypto adage that states: while buying crypto assets, only invest the amount that you are prepared to lose.
4.Avoid falling for convincing scams:
Other than price surges, the crypto economy has had several cautionary tales; and in one instance that occurred last year, victims who fell for a deceptive request to update their wallets reported that they lost all their funds to a scammer. Ergo, scammers often rely on new technology to convince traders and cheat them of their fiat and crypto-assets. For instance, perpetrators have even impersonated famous crypto influencers, while others have deceived people with fake crypto projects.
If you come across new crypto coins and protocols that you like, try to follow in the project's social media footprints and hear what others are saying. Always DYOR (do your own research) and follow the latest crypto news . If you suspect that you are a victim of crypto fraud, reach out to bitcoin abuse portals and flag the projects online.
In conclusion
Most crypto traders have teething problems in the beginning, but with more guidance and awareness about this relatively new sector, those interested in bitcoin and other crypto-assets can always learn to trade safely and with tact!
Looking to expand your crypto portfolio, or invest in crypto for the very first time? Visit BitOasis – the largest and most trusted cryptocurrency platform in the MENA region, offering 20+ cryptocurrencies to choose from.
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