Disclaimer: As I mentioned in the article, how to double your money in 1 hour, I still believe that I am not a crypto expert, nor do I have plans to be. However, I do trade on cryptocurrency for a year.
This article is to share my experience, why I was not making money on crypto. Which mistakes all beginners make, and how easily we can avoid those mistakes to start making money on cryptocurrency trading.
Remember, you don’t need to be a crypto expert to make money on crypto. It’s easier than you think. You just need to avoid a few mistakes mentioned below.
Let’s get started now.
If you question yourself, why am I not making money on crypto while others do, then I bet this will make your day.
Once we come to know that cryptocurrency trading is one of the fastest and safest ways to make huge money, we all start drooling.
Nothing wrong with that.
But we can’t do anything without learning it.
Can you drive a car, swim, or build a house without learning it?
Never.
Then how the heck can you start trading without learning it?
When it comes to learning crypto, we get overwhelmed. We start believing that it must be technical and that you can’t learn easily, but that’s not true.
Everyone can learn it easily and trade on it.
You need to trust yourself. What others can do, you can do.
This is not a trading guide; you can either Google or YouTube a trading course to get started. But here, we shall discuss which mistakes all beginners make, and if you avoid those mistakes, you will start making money on crypto trading. At least, you would never lose money.
If you are a beginner, then here are the mistakes you must be making, and for those mistakes, you are not making money on crypto.
On this page
Beginners don’t explore the coin well
Once I had no idea of all this stuff, I kept on losing money. I was not making anything on crypto, but the day I started exploring the coins. Things started changing.
It’s one of the biggest mistakes that beginners don’t do appropriate research. They are influenced by many hypes but never research.
It could be someone’s suggestions, say influencers on Twitter, or if the coin was going up and up for a while. You will surely get in!
This is what you should never do if you want to make anything on crypto.
If you want to put money in any coin, do your appropriate research on the coin. Everything you can know about the coin.
Say, who is behind the project, why the price will go up, what they are doing, and if the marketing well? Is the community strong? What is the biggest support level, and can you tolerate it if the coin goes that low?
These are not hard things to do.
It won’t take more than 30 minutes to see everything available online. And it will make everything clear to you.
You don’t check the coin’s history
Every coin has a clear history available online. The biggest source to check any coins’ history is CoinMakretCap.com and CoinGecko.com. Both websites have great resources and track everything they do.
That history will make you understand in which range the coin flows, on which positions it stops, and if it flies, how long it will go.
Once you open any coin’s history on those websites, you will see it’s pretty easy to guess anything for any coin.
Never invest without knowing it, because maybe, you buy at the resistance, and suddenly it will move back. And you will panic sell at support, and it will go back again.
It must have happened to you many, many, many times. Am I right?
You invest in the hype
Two things happen with most beginners. It even happened to me many times; once I didn’t know the reality of it.
You invest in any coin because of social media campaigns. You invest because it has been going up and up for a long.
I lost money on $Kishu because I was influenced by their marketing. There was on Twitter lady Kishu Queen (she changed her name later and blocked me, lol), she caused many people to lose much money. And I lost money on $Pig because it was up for a week. Both are meme coins, and I would never touch those coins again, no matter how high they go.
No matter how big the Twitter account is, they all are paid for tweeting for new coins. If they are not providing any reasons, why it will go up, why you should invest, why it has a future, don’t listen to them. They are just making money with each tweet.
I know many who do this on Twitter.
They work hard to get subscribers, sometimes they offer free money in giveaways, and many times they lie but they build a community on their account and then start selling tweets.
So never invest in the hype; even if you do, get out with pretty small profits.
Remember, everything that goes up has to come down. No matter how strong the project it. Wait for that time.
You don’t buy at the support level
Every coin has a support and resistance level.
Earlier, I was also of the opinion that how can a coin have support or resistance when everything is in investors’ hands?
But that’s not true.
Day traders always follow the candles to get in and get out.
It’s not you and me setting those levers, they are the whales, and they trade with candles.
What can you do to make money on crypto trading?
You can simply follow them.
So how can you find the support and resistance level?
It’s pretty easy.
Once you open the chart of any coin on the given sites mentioned earlier, you will find candle patterns. Where many candles stopped, and it will be the same for most, it’s the level you want to check.
Look at the chart given in the photo to get an idea. I checked this graph for my friend a couple of days ago.
If you see, it stopped exactly where most of the candles stopped many times. It’s a 4H graph.
And if you see the 1H graph, it’s the same point where it stopped.
You should check on 4H, day, and Weekly graphs to get the whole idea of finding the support level of your coin.
You never sell at resistance
This mistake is my favorite one.
Suppose we purchased a coin at the support level or in between the support and resistance. And it started flying.
OMG, it makes our day. Isn’t it so?
Who would like to sell it?
But that’s why you are not making money on crypto.
It’s not an emotional thing. You need to follow the pattern if you don’t want to lose money. Otherwise, you will keep thinking, hey, everyone is making money; why am I not making money on crypto?
Do you want to continue thinking?
Hell, No.
Then sell at resistance (if it’s not a long-term investment). And if it’s long-term, then don’t check it. Check after the period you set for your trade.
You don’t wait for corrections
If a coin is going up, up, up, and up.
You might think, no, this can never come down.
There will be huge green candles.
Should you invest in it?
Never. (If it’s not day trading.)
Wait for the correction; it will surely come back.
Most of the beginners think that as the Bitcoin crashed, that’s why that coin crashed.
Don’t be this much emotional. Every coin has to come back for the corrections. Why don’t you think of waiting for that golden time?
If you do so, you will never get panic.
You put all the money in
Well, this is what all beginners do. Even I still don’t keep enough money in Fiat.
It’s the biggest mistake that can ruin you.
Even you put money in one coin (that’s what you should never do that) or put in your favorite ones. Keep 50% in Fiat (USDT, BUSD, HUSD etc.).
Because you have no idea when any of your coins will start coming down, and you will get panic to sell them.
If you have money in hand, you can see the bottom and think of DCA (dollar-cost averaging) if it ruined the investments.
You panic sell at low
Suppose you have invested all the money on any of your coins!
Once it is low, you will start seeing many opportunities to invest in and start thinking that if I sell here, I can invest there and recover.
Think of another situation.
You had invested 20% of your investments in a coin, and it went low. Would you sell it?
Never.
Even I have two trades that went at the bottom. I am not selling because I don’t need to sell.
Remember, everything that goes down (if not rugged pulled) will come back.
Conclusion
If you think, why am I not making money on crypto and want to make money on it, then this beginner’s guide is for you.
In this guide, I have shared which mistakes I made, and all beginners make, and that’s why they don’t make money on crypto.
In the end, never think you can’t be wrong. It’s all about guesses; you are not controlling it. It’s them – the whales. That’s why traders use SL (stop loss); if it didn’t go right, move on with a small loss. Stay safe and happy on your trading.