Common Mistakes Altcoin Traders Make

No idea what I'm doing

Most people come into trading crypto currencies without any guidance and just jump in. BIG MISTAKE. This is why most fail, or at least continue to loose money hand over foot. You have to set guidelines for yourself to follow and stop being a sheep. Following the herd is going to get you nowhere other than lining the pockets of someone who thinks for themselves. Get ready for a long post because there are just too many mistakes made by beginners and even experienced traders each day.

London Close Trade Strategy with Vic Noble and Shirley Hudson

Altcoin Educate Yourself

Not putting in the time or energy to learn

Most people want easy money. And trading isn’t easy money at all. No you don’t have to go out and deal with physical labor to get some money but you do have to take time and educate yourself. As a trader you need to take time to learn to trade properly and learn the trading terminology. There are plenty of places to start such as YouTube or even @MaxMoyle’s Blog (even if you aren’t a beginner it’s best to read his blog….repeatedly). CryptoGab will also be putting together posts with this info in the future (there’s just too much info to stick it all in one).

Not knowing how the markets work or knowing what trends to look for will cost you in the long run or even in the very short run if you try altcoins. Building your portfolio based on what others say you SHOULD do will only end up resulting in you lining the pockets of those people. Learn to make your own trading decisions, this is the only way you will survive.

Altcoin John Wayne Stupid

Not Doing Your Own Research

Don’t be lazy. Don’t chase coins just because you see some big trader saying you should buy. Sure what Mr. BigNGillteryBTC might say seems to go up all the time, but there’s always that one time when you decide to give it a go that it’s not going to go in your favor. So just take 10 or 15 minutes, run over to BTCTalk and check out the coins thread. Is the dev still active? How long has the coin been out? Is there more to the coin than someone can use copy and paste and MS Paint? Is the dev able to deliver, has there been any innovations with this coin? What the community like, is it nothing but FUD and kids going “NO U R STOOPID”? If it seems to pass these simple tests then continue to look around and decide for yourself if this coin looks like it might have some value.

Dr Who i give you air from my lungs gif

 Giving People Your Money for Absolutely Nothing

ICOs are abundant in cryptoland. And most are ridiculous. I’m sorry but if a developer has an idea for a coin and is asking for money upfront there should be something to show for it. Countless times I’ve seen ICOs launching that’s a copy of some other coin with a new name and some crappy MSPaint logo, and people throw their money right at them. If you really want to do this feel free to message me on Twitter and I will gladly copy the specs of Dogecoin for you and draw you a crappy flower in exchange for BTC so you can get your charity fix done for the day.

On the other side of things you have the coins that say “No Premine, No ICO” never going to happen, blah blah blah. You’re thinking great! But wait…. again go do your own research, just because you’re not handing the developer your money directly doesn’t mean you won’t be wasting it. Trying to trade brand new coins can be like russian roulette for newbies and it can also be the same way for experienced traders. It’s here that the market will turn around on you in a heartbeat. FUD with new coins is abundant and people will panic in a split second, while you’re busy trying to figure out wtf is going on or maybe you just got up for a glass of water, you can come back to your BTC down the drain. Make sure if you want to venture into the new coins that the developer has produced something, anything, not just “I slapped a circle on a square and called it ShinyCoin”, but they need to show you a plan, that they have some intention with this coin other than to walk away from it in 48 hours.

 

please-bitch-to-the-hand-you-talk

Being Bullheaded

Most traders that put their BTC in a coin hoping for huge returns will go down with the ship kicking and screaming rather than admitting defeat and moving on to something that will make up for their losses. You see this all the time on twitter and in BTC talk, sure there’s a difference between defending a coin you’re invested in against FUD and fighting a loosing battle with a coin that was obviously doomed from the start. Learn to know when you’re down, cash out, move to something that will get returns and if the coin you originally had is legit let the crash happen then go back in when it’s down and ride to the top again, rinse and repeat. Don’t take your chances hoping for a rebound while your BTC value is going in the red because majority of the time with altcoins they will die with the crash you tried to ride out.

Altcoin Bad Trade

Not Being Patient

This is crypto and a week in crypto is like a year. Things go by in the flash of an eye and this makes patience a rarity. But most times not being patient will cost you money. Markets fluctuate all the time, this is why taking not the time to educate yourself will cost you. If you’re new and you put your BTC into NewBrightAndShinyCoin and it drops 20% due to someone panicking like you’re now doing or trying to purposely get you to panic and dump your coins at a loss, or they could just be stupid. If you aren’t aware of market trends or possible FUD to get the price down or tactics of whales you’re going to loose right away.

If you are trading in brand new coins you need to be quick on the trigger not to loose much, but instead of panicking when the price dips try to remember to use FUD to your advantage when entering these markets. When the price of a coin starts going up you are 99.9999% guaranteed someone will have missed the boat and is going to go over to BTCTalk and start throwing around the scam word. When this happens people are going to panic and dump, this is where you want to buy, not before the FUD. Wait till the all the Stupids are up in BTCTalk duking it out, set low buy orders and then wait, the ones that dumped will start to get skeptical and then start panic buying and the price will rebound then you sell to them, rinse and repeat.

Now if you have been smart and trade in established coins this is where educating yourself on trading trends and analysis comes into play. Market trends happen in these coins. You have to learn how the markets move and what patterns to look for when it comes to established coins. Again YouTube is a great place and CptCrypto.com is another blog with awesome explanations on market trends and what to do with them.

Altcoin Doge Bad Trade

Using Twitter the Wrong Way

So people start tweeting about NewBrightAndShinyCoin, and by God it must be a good buy then, so you run over to the exchange and just start scooping it up not even giving a rats ass about the price or what the coin has to offer. WRONG. Wrong wrong wrong wrong wrong. And again WRONG. Twitter is not where you should get your trading moves from. You have to always remember twitter is hype. 95% of what you see saying is a “good buy” is because that person already bought before you and now they want to sell to you. I can tell you for sure they aren’t buying at this point. Very few tweets actually are giving advice about something that is down the road.

If you see some twitter account by someone in crypto and all they do is say “buy BlahBlah Coin”, “Blah Blah Coin is a good buy” and never offer anything constructive to say or that looks like they might have a brain that is capable of a thought process beyond telling you what to do, run away. These are not the people you want to be following, they will do nothing but cost you money. Sure they might also throw up “oh I called blah blah coin and it went up, see how good I am” again run away, they are not offering you anything but the fact that they guessed right one time.

Another twitter crypto persona to stay away from is the one that can’t make a call unless other people have. This also ties in with if they can’t offer anything constructive on their twitter feed. There are a few out there that are thinking they’re some awesome twitter crypto god because they have a bunch of followers, this doesn’t mean they’re smart and it doesn’t mean they make good trades. They are sheep, and you don’t want to join the herd, you will do nothing but loose in the end.

The way to use Twitter for crypto is to follow people that talk beyond constant “Buy BlahBlah Coin” over and over. I’ve put together a list on Twitter that you can subscribe to that is updated regularly with twitter accounts that will give you actual advise rather than trying to get you trade what they trade. And even if they do suggest a trade they will be able to tell you why it’s a good idea rather than “duurrr cause MrBrightAndShinyCryptoMan said so”.

Bad Trades Meme

 

Trying to Force Trades

When volume is low and people aren’t trading, DO NOT try to trade just because you’re bored. This is not the time to force anything to happen. You will loose, volume is low because no one is buying or selling, meaning you will loose your ass when people decide to trade and the market starts moving again.

If you’re bored and there’s not much action, take the time to brush up on trading tactics, go take a Coursera course, go spend time with the family you’ve been ignoring since you fell into this crypto trap, or just go see the sun shine again. If nothing is happening on the markets it’s not the end of things, it just means take the day off and enjoy not having to sweat over whether or not you just lost all your BTC.

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