Manual trading is an activity that involves work to obtain profits from the process. It is essential to develop specific skills, including an analytical mind and attention, in order to achieve high competence in trading.
Many people come to the cryptocurrency exchange, hoping to earn their cryptocurrency quickly with minimal effort. However, reality makes adjustments, and a novice investor may soon be disappointed by the stress involved with manual trading. Human errors are a given when you’re in charge of knowing researching the market price, price per share, and determining whether you need to utilize broker transactions to complete a trade.
Manual Crypto Trading is Risky! Here Are The Top 5 Reasons:
1. People Don’t Do Enough Research!
It is up to you whether you buy cryptocurrencies or not. If you don’t understand the product and its actual value you’re likely to leave unrealized profits on the table. When you only follow people who tell everyone when to invest and sell currency, you’re guaranteed to lose a lot of money because your decisions to buy and sell depending on others’ opinions.
2. Investing the money that you cannot afford to lose into the trade
Nobody is protected from failure and mistakes; even professional investors sometimes suffer significant financial losses. Mistakes must be learned from. So before starting to trade, the best thing you can do is minimize the consequences if you make an error.
3. Decision-making following excitement, emotions, and unconfirmed information
When you have a plan of attack prepared in advance you’re less likely to jump at every Twitter or Telegram tip that comes through. Most of the time when the message floats by saying something like, “It seems that Bitcoin has come to an end. It’s better to sell.” it’s hard to stop yourself from panicking.
Even if there is some truth in these reports, it is impossible to follow them all at once, and in general, the most patient ones usually still win over swing trading.
This may be the most serious mistake in the crypto community today. Hundreds of millions of people lost their money when they trusted all their data to a hacked company or a service that didn’t work anymore.
With the development of new technologies, scammers and hackers don’t just stand still; they’re willing to take advantage of it. Even if you have some money now and didn’t plan to trade for a long time, it’s important to take care of your data: two-factor authentication, using individual computers, and encrypting your data.
Fear Of Missing Out manifests itself when an early sale approaches due to fear of losing profit, buying at the maximum due to the feeling that you are missing something important, or the fear that you might miss out on a promising ICO, which explains why you invest in dubious projects. It is the fear that we might lose our profits that most often causes us to lose them.
Manual traders succumb to FOMO rather than buying at fair market prices even when they have a plan in place. This is why using an AI trader is helpful.
There will always be cryptocurrencies, ready to fly like rockets. Avoid these deadly sins to help build your wealth.