Member-only story
Here Are 3 Mistakes To Avoid While Trading Crypto
Utilizing derivatives contracts for leverage and hedging strategies can be highly effective, however, traders commonly fall prey to three major errors.
Novice traders are frequently enticed by the potential for substantial returns and are drawn to the futures and options markets. They are allured by the impressive gains touted by influencers and the many ads promoting 100x leverage from derivatives exchanges, which can be difficult to resist.
The use of recurring derivatives contracts can boost potential gains for traders. However, a few misjudgments can swiftly turn the promise of significant profits into a nightmare, resulting in depleted accounts. Furthermore, experienced investors in traditional markets are not immune to the challenges unique to the cryptocurrency market.
Similar to conventional markets, cryptocurrency derivatives operate by enabling buyers and sellers to engage in contracts tied to an underlying asset. However, these contracts are non-transferrable across different exchanges and cannot be withdrawn.
This article seeks to explore three typical mistakes that traders should avoid when dealing with futures and options.
