5 Mistakes to Avoid when First Opening a Bitcoin Trading Account

5 Mistakes to Avoid when First Opening a Bitcoin Trading Account

5 Mistakes to Avoid when First Opening a Bitcoin Trading Account

There are many mistakes that I can think about that people make when they first open a Bitcoin trading account. It’s easy to set up and all, but the real trading takes much more than what you might expect. Reckless Bitcoin trading can easily finish your deposit. You don’t want that right?

So, continue reading for our 5 Mistakes to Avoid when First Opening a Bitcoin Trading Account!

Let go of your Dreams

It’s great to have ambition and one should be ambitious. But don’t expect to cash out millions in a few days. It’s surprising and funny when we see people making fake posts about making millions in a month due to Bitcoin trading.

You need to be extremely skilled in trading and should have a deposit of a few hundred thousand dollars to make a million in a month. So, calm down and think logically how you can grow your investment. Trading Bitcoin shouldn’t be a way to earn money but a way to grow your initial investment into Bitcoin. That way, you benefit from the general rise in the price of Bitcoin as well as growing your Bitcoin equity.

Check out our guide for how to trade Bitcoin profitably.

Don’t Overestimate yourself

I hope you understand how much knowledge it takes to trade Bitcoin professionally. You need to understand all smart parts of the industry which could cause a swing in price. And you need to realize that the price will swing before everybody else does. That’s why Bitcoin trading can be tricky sometimes.

Don’t open a Bitcoin trading account thinking that you will be able to rake in a very high profit on the first day. First, makes sure that you use a demo version or try trading CFDs in order to understand how the Bitcoin price moves. Sometimes, you can overestimate and hope that your intuition will play out. Mostly, it doesn’t.

Volatility can be Great

Volatility is apparently (according to mainstream media) one of the big negatives of crypto currencies. You might think that volatility is a bad thing for traders, but you’d be wrong. When there’s high volatility in the market, the price shifts are pretty unpredictable. However, the general trend of the coin remains the same. Thus, if you have a solid reasoning for why Bitcoin will rise in value today, you should buy even though it’s a volatile market. However, you can only make money from rising markets in Bitcoin trading.

Otherwise, you can take a look at Bitcoin CFD trading. Opening a Bitcoin Trading Account on a CFD platform is pretty easy and you can benefit from falling markets too.

You can check out CFD trading and its advantages here.

Depend on Information, not Intuition

This is a mistake that every rookie trader does; which is trading on intuition. Trust me, it’s one of the worst mistakes that one can do. When you first open a Bitcoin trading account, you want to carry out your first trade. However, it’s important to know that the price of Bitcoin could go in any direction at this time. If you don’t have any information or logical thinking process behind why you want to buy or sell.

Make sure that your trades are based on information which you think will cause the price of Bitcoin to rise or lower.

Don’t Expect Thousands with a Deposit of $100

Bitcoin trading can be notoriously unpredictable sometimes. So, not all of your trades will make you a profit. Thus, you’re going to start with a trade of $30 or $40 but these small amounts won’t grow much since they represent a small value of coins. So, the increase could be 4% but on an investment of $40, you would make around $1.6. That’s a pretty low return but it’s a positive return. So, if you want to start trading professionally or try to make ends meet with Bitcoin trading, I suggest you deposit over $300 to start with Bitcoin trading. When you make your Bitcoin trading account, you can choose how much to deposit and you can decide how much you are ready to devote.

That’s it

We hope you avoid these 5 mistakes when first opening a Bitcoin Trading account. You can also check out Plus500 for Bitcoin trading. In our opinion, it’s one of the best Bitcoin trading platforms available today. It provides demo account and also gives bonuses of $25 when someone opens an account and deposits money. You can use the demo account to learn Bitcoin trading well and then continue to complete your deposit.

Check out our Guide on how to Invest using Plus500 for more information!

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About Article Author

Michael Serrano
Michael Serrano

Michael is an engineer and a bitcoin evangelist. He has been involved in cryptocurrencies since 2013. His biggest wish? 1 billion users of bitcoin, ether and litecoin by 2020. In the last 10 years he has worked for various early-stage start-up as a back-end developer.

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