Three Common Mistakes New Crypto Traders Make

When it comes to trading in the crypto space there are three common mistakes new traders make: going against the trend, trading in consolidation periods and forgetting to reduce their risk.

This is especially true when it comes to trading highly volatile coins with a low market capitalization and it pays to remember that when bitcoin's price moves so too does the rest of the crypto market.

While traders may be aware of the price pairings and the fundamentals behind these wild price swings, they continue to dabble in alt-coins amid uncertain consolidation periods usually in blatant disregard to the primary fact that bitcoin could bring them under.

Enjoy making trades on short-term periods that garner 2-3 percent despite the overall market trend being bearish - they make it work based on their personal trading styles and low-risk appetite.

Often times, inexperienced traders will sit on their investments long-term after a big move, believing that the price will go back up.

This choice often leads into the stubborn investor "HODL" mindset, whereby traders refuse to sell the given asset based on their belief that price will rise back to the level they bought in just so they can ultimately exit the market altogether.

It's possible that the majority of new traders seen toward the end of 2017 are just itching to exit the market based around that particular strategy and certain price levels in hopes of coming out of the whole ordeal cost neutral but there is merit for the "HODL" strategy.

If you bought bitcoin at $10,000 why do you care what the price is today? That, of course, depends upon your risk appetite, trust in the asset and whether or not you're happy to wait out another possible year of bearish conditions with your "Loose change" locked up in crypto.

Which brings us to the last strategy new traders forget to embrace; reducing your risk of exposure in the market.

As mentioned above, too often is the case that new traders will decide to "All in" on their favorite crypto as all this really achieves is increasing your exposure to market fluctuations and volatility.