Do you want to know how not to lose money when trading digital coins? Find everything and even more in our new LATOKEN review!
We often write in our LATOKEN reviews that cryptocurrencies belong to the class of high-risk assets. This is a relatively young and highly volatile market, which, unfortunately, might lead to financial losses. You can lose your funds in a variety of ways. Moreover, one can also become a victim of a crypto scam. So let’s try to figure out what not to do in order not to lose your money.
What not to do when dealing with cryptocurrency. How not to lose money
In order not to lose your deposit, you should not trade cryptocurrency with leverage higher than 5x. In this case, market fluctuations and commissions for a large number of trades may nullify your capital. The risks of losing funds can also include the use of leverage without stop losses and averaging a losing position using borrowed funds. In this case, you can lose not only your own money but also the broker’s money.
It is also not worth buying unknown tokens of new projects, especially if you are new to the crypto market. If you were allowed to make a deal at the start of a project for a small capital, then this is most likely a bad project or even a cryptocurrency scam. In addition, you might lose money by investing it in DeFi projects with an interest rate above 25% per year since they might have hidden protocol risks.
You can incur financial losses if you open a position without any idea and act speculatively and on the off-chance. This approach is similar to gambling and cannot be applied to systemic trading on the crypto exchange.
Among other things, you should not mechanically copy other people’s deals or not follow your own trading rules. You might lose your funds if you rely on a very complex strategy without having the practical knowledge to follow through with it.
Intraday trading should not be treated just as a hobby. It’s a full-time job, or even more. If you slack it off, you will definitely lose your money. Furthermore, by no means be overconfident and work without regard for risks.
At such moments, it is easier to make a mistake that will ruin your entire deposit. Remember — you cannot earn all the money; you can only lose all the money.
What else to do NOT to lose money
To not lose all your crypto, you should not buy an asset at the highest point of value and sell it at the lowest point of value. This behavior is often caused by emotional actions and the fear of missing out (FOMO) syndrome .
You can lose your money if you invest in financial pyramids or follow other people’s advice. Do not forget that nowadays, it is very easy to become a victim of a crypto scam. In addition, you should not invest your funds in just one asset. It would help if you diversified your portfolio.
We have repeatedly mentioned in our LATOKEN reviews that you should always do your research and trust well-known crypto exchanges, such as LATOKEN.
LATOKEN does not give any investment advice, but if you want to start trading, you can always do it on the LATOKEN exchange. By the way, here is another piece of advice: always check if the crypto exchange or any crypto project is official and legit. It will definitely help you avoid becoming a victim of a cryptocurrency scam.
Want to start trading? Then follow the link below!START TRADING ON LATOKEN
- Ranked #2 worldwide in the startup tokens primary market with 220+ IEO’s since 2017.
- Has over 2 mln registered users, over 1 mln Android app installs.
- Is in the TOP 10 of CoinGecko rank by the amount of token pairs and coins listed.
- VCTV, a live streaming panel with high-profile industry leaders, produced over 500 shows to advise traders and investors how to navigate the crypto world with discussions, news updates, and interviews.
- Advisory Board includes former CFOs from JP Morgan and Paypal.
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LATOKEN crypto exchange does not provide any investment, tax, legal, or accounting advice. This article is written for informational purposes only. Like other assets, cryptocurrency is subject to market risk. Please do your own research and trade with caution.