What are some common mistakes to avoid when trading cryptocurrency?

1. Not doing your own research: Many new investors blindly follow the advice of trading “gurus” or cryptocurrency influencers. However, it is important to do your own research and make sure that any advice you follow is backed up by facts, market analysis, and your own judgement.

2. Lack of diversification: Don’t put all your eggs in one basket. Diversifying your crypto investments by trading multiple different coins can help mitigate risk.

3. Not using stop losses: Stop losses are a valuable tool for protecting against dramatic changes in the value of a coin due to market volatility.

4. Over leveraging a position: Leverage trading can be highly profitable but it can also increase your exposure to risk if used improperly. Be conservative and use leverage only when necessary.

5. Not having an exit strategy: Before entering a trade, it’s important to know when you plan to exit. Set realistic goals and plan out when to close a position and take profits or cut losses.

6. Trading on emotion: Don’t let greed or fear lead you to make irrational decisions. Keep your emotions in check and try to base your decisions on sound market analysis.