Losing Money With Cryptocurrency? Maybe You Have to Learn this Knowledge

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The head of the BIS Innovation hub, Morover, also warned that stablecoins could pose risks to financial stability. Coeure stated that stablecoins, if they are considered “systemically important”, should be regulated according to “international standards for payment and clearing systems to protect financial stability

Coeure, a French economist, was previously an executive board member at the European Central Bank. He stated that the history and present of private money is not a happy one and that private issuers always chose profits when there were conflicts between making money and keeping it stable.

Coeure said, “This is where central banking comes in,” before going on to describe how a “well designed” central bank digital currency ( CBDC ) could be both a “safe-and neutral” means of payment or settlement in the future.

Inadequacy of market knowledge

We all know that not everyone is an expert or has the inside scoop. We often rely too heavily on experts without understanding the market. Are there high levels of liquidity in the market? Is your crypto able to handle the potential? You need to understand the movements of the market to determine when it is a good time for trading. Do your research.

Inadequacy in trading skills

Are you a skilled trader? Are you able to create your own trading strategy? Many traders who trade for over a year don’t know how indicators or to read candle charts. Trading is not about following the crowd. It is important that traders have their own trading style so they don’t get emotional trading. Many exchanges offer tutorials, and some even provide a personal account manager with trading tips for users.

Too many trades, too large position sizes

Emotional trading can be very common. In the hope of making more profits, novice traders will often push the limits in order to reach higher highs. They are the first to leave the market when the price drops and they lose any chance of making their money back. Whales and exchanges have been known to profit from this behavior to dump or pump the market. You will need to pay an exchange fee for every trade you make. Keep calm and be patient. As a backup plan, remember to split your money into multiple shares. Do not throw away all of your money at once.

Do not forget to set stop-loss or take-profit

Trading without a stop loss or take-profit is just like driving without breaks. We don’t like to accept defeat and we are too greedy for winning positions. We can’t always win and be right, especially in volatile markets. Trading is a long-term venture. With a stop-loss and take-profit levels in place, we can always open another trade.

Emotional trading

When the price falls, novice traders can be easily discouraged and scared. The volatility of cryptocurrencies means that traders can make large sums from them. You need patience and the ability to handle price fluctuations when investing in cryptos.

Are you sure that your exchange is right for you?

There are many cryptocurrency exchanges, but many of them are fraudulent or shady. Bad exchanges will charge excessive fees and won’t let you know what fees you must pay. Many exchanges, including Binance, are suspected of manipulating the market or pulling the plug intentionally. Even worse, each year many exchanges shut down and disappear, taking with them all the user deposits. Some exchanges’ trading engines or rules can be so complicated that it takes traders a long time to learn how to use them.

A demo account is a great way to test out an exchange. You can learn how to trade, control your emotions, and analyze the markets with a demo account . The best traders are those who can analyze the market and stay up to date with market news. They also keep their fingers on the pulse of new strategies. Demo accounts are a great way to practice your trading skills and learn about the changing market.

Offers 100x leverage in BTC and ETH, DOGE. You can also get 10 BTC demo account. Over 800K traders worldwide trust Bexplus, including those from the USA, Japan and Korea. Traders can enjoy the best customer service, with 24/7 customer support and a personal account manager, without having to complete KYC or pay a deposit fee.it.

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