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7 Steps to Recovery from a Crypto Trading Loss

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Whether you are a newcomer to the crypto market who mistakenly invested a large amount into the wrong coin, or a professional that made a well-researched decision and something still went wrong, the result it the same — you lost your money to the crypto market. This is a big problem, but also a problem that every crypto trader faces at some point.

The reason may be anything, from simple bad luck to the lack of research. Add to that the fact that the crypto market continues to be extremely volatile, and it is clear that not all of your trades are going to end up successfully.

Whatever the reason is, the fact remains that you experienced a loss and that this is a problem which can affect more than your funds. It can also affect your mind and feelings. Since every successful trade that you have the potential to make in the future depends on you, you have to recover first, and only then should you worry about the funds.

The road to recovery is different for everyone, and it will take a different amount of time and effort. However, there are a few general steps that you can take to recover from a crypto trading loss.

Step 1: Stop and calm down

You have just suffered a major loss. It may have been your mistake, or it may have been bad luck, but the result is the same. This is the time when you are the most vulnerable, as you are still in shock upon realizing the truth. The best thing you can do now is to stop your trading immediately and calm down.

This is an emotional period, and it is important to handle your emotions, take a deep breath, relax, and regain composure. The money is lost, and there is no quick fix to that right now, that much is true. However, when you are emotional, you are not thinking clearly, and you may end up making a lot more damage in an attempt to find a quick fix.

Bad trading decisions happen all the time to everyone, and everyone loses money. However, it is important to deal with it when it happens, and it all starts with distancing yourself from making new decisions right now.

Step 2: Accept your loss

Crypto trading is risky, and sometimes bad things happen. While you have probably heard stories or read confessions on forums about bad decisions that cost a pretty penny, you never expected it to happen to you. Now it did. Even if the loss is big, you need to remember that it happens and that you sometimes win and sometimes lose. However, you can still recover the lost funds in the future, but to do so, you first need to accept what happened.

Step 3: Distance yourself from the market

This is probably not what you want to do now, as you are in a hurry to recover the loss as soon as possible. However, this is a necessary step that will allow you to calm down and think things through. You can return to trading whenever you feel confident enough to do so, but after experiencing a large loss, the best thing you can do is take a little break.

It does not have to be long, maybe only a few days. However, it is necessary, as it will allow you the precious time needed for dealing with your emotions and stress. Once you start feeling up to it again, you can approach the market with a cool head, which will increase your chances of avoiding similar mistakes in the future.

Step 4: Find out what went wrong

This step may be crucial for avoiding similar errors, which can cost a lot if you trade with greater amounts. Take notes on what you did, how you felt about it, whether you were confident or the decision was risky. Trading journals are a very useful tool for any crypto investor, as they force you to become aware of your feelings as you are writing them down. Doing so will help you sharpen your senses and help you grow as a crypto trader.

Next, make sure to identify what exactly went wrong. It is also important to note that you should never trade more than what you can afford to lose. If you already knew this but you did it anyway and it resulted in a loss, use this unfortunate situation as a reminder to never do it again. The profits are nice, but doing it safely is always the smartest decision, as not all trades go the way we want them.

Step 5: Do your own research

Many traders and investors often make a similar mistake of doing what others are doing. This is a bad habit in general, but it can be especially damaging in the crypto market. Just because someone invested in some coin or decided to make a certain trading decision at a certain time and it worked for them, it does not necessarily mean that it will work for everyone else in the same way.

Instead of following the crowd, do your own research, document it, and make your own estimates of what is the best move to make. Even a slight shift in the market can sometimes lead to different results, and crypto trading is especially infamous for being highly volatile.

Step 6: Do not give up

The fact that you had a bad experience should not discourage you from continuing to trade in the future. The crypto market is a tricky one, but it can still allow you to make considerable profits if you trade carefully and think your trading decisions through. Sometimes you will have a bad day, and sometimes you will earn huge amounts. This is how the market breathes, and this is how trading ends up being for most traders.

Do not lose your faith in crypto or your trading abilities. Instead, research more, keep learning and exploring, and you will be back there, making calculated decisions in no time.

Step 7: Start trading again

After you manage to collect your thoughts, calm your emotions, figure out what you did wrong, and learn what you should have done — you will be ready to return to trading once more. The entire experience, albeit a bad one, will allow you to start anew and make your future decisions more cautiously.

Your future losses will not be as bad, while your gains will become more frequent. In the end, the loss you just experienced may allow you to reach the next level of trading. It is normal to be scared and uncertain at this point, and it is perfectly fine to start small once again. Over time, you will gain more confidence, and as long as you remember not to be too reckless — you will eventually sharpen your skills and become a professional.

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Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Global Coin Report and/or its affiliates, employees, writers, and subcontractors are cryptocurrency investors and from time to time may or may not have holdings in some of the coins or tokens they cover. Please conduct your own thorough research before investing in any cryptocurrency and read our full disclaimer.

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Altcoins

KaratGold Proves Its Business Model By Providing Official Documents

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There has been a lot of renewed enthusiasm in the cryptocurrency market thanks mainly to Bitcoin’s strong move about 10,000.  Although Bitcoin continues to show its dominance, the altcoin market has yet to benefit from that rally.  A few of the largest altcoins remain popular but the rest of the market continues to lag behind.  In 2018, there was a lot of talk regarding a possible altcoin apocalypse where only the strong would survive.  That prediction appears to be playing out as expected.  Going forward, only the best projects that have a real world need will survive.  Crypto traders will have to spend a lot of their time doing proper research in order to find the best opportunities, just like in all financial markets.  One promising project that appears to have the makings of a future winner is KaratGold Coin.

KaratGold Background

KaratGold Coin is a cryptocurrency developed by the reputable German company Karatbars International, which maintains a leading position in the market of small gold items and investments. The project is part of a larger ecosystem, which involves several blockchain solutions that can be used for transactions, communication, investing and other tasks. During the past few weeks, however, the KaratGold ecosystem has been a target of unsavory scam allegations.  

Karatbars International and GSB Gold Standard Banking Corporation…

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ICTE May Bring About Sweeping Changes for Cryptocurrency Exchanges

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Cryptocurrency has taken the world by storm during the last few years. An entirely new financial market was created almost overnight which has captured the imagination of all its participants. Cryptocurrency is even starting to attract institutional money from investment banks, hedge funds, and other proprietary trading firms. Despite the rapid growth, traders remain extremely frustrated by having to deal with the fragmented nature of centralized crypto exchanges.

A Change is Needed

When cryptocurrency first began, there weren’t many participants and the trading volume was relatively insignificant. But, over time, that has radically changed. Some tokens now have a capitalization in the billions and are being traded 24-7 by institutions all over the world. Despite the volume, significant problems exist with the current way that exchanges work. Some of those problems include the following:

  • Constant fear of hackers
  • Exchange manipulation
  • Fragmented liquidity
  • Risk of identity theft

One of the biggest issues regarding centralized exchanges is the risk of being hacked. These hack stories seem to always be circulating around the internet. While experienced traders may have the tools to avoid becoming a victim, potential new traders have zero interest in dealing with this. And it’s not just the small exchanges that are at risk. Even large exchanges, such as Mt. Gox and Binance, are subject to being hacked.

Another huge risk is having to deal with…

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Altcoins

SonicX and Dash Could Challenge Facebook’s Libra for Global Payments Market Share

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SonicX
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When Satoshi Nakamoto unveiled Bitcoin to the world, the dream was always for Bitcoin to serve as a new universal currency.  It would be free from the bureaucracy of governments.  And free from the tyranny of the old-world financial cartels.  Although the dream hasn’t yet materialized, it comes closer and closer with each passing day.

One of the biggest roadblocks for Bitcoin has been scalability.  At a speed of approximately 7 transactions per second, Bitcoin lags behind other cryptocurrencies like Ripple and global payment processors like Visa.  Many expect the lightning network to have a positive impact on Bitcoin’s TPS but until that comes to fruition, mass adoption will likely need another significant development.

Libra Currency Announcement

One development that could help pave the way toward mass adoption is the launch of the Libra currency.  Libra is expected to go live during the first half of 2020 according to Facebook’s June announcement.  According to Facebook, Libra will make sending money online cheaper and faster.  It will also have a hand in improving access to financial services, especially for the unbanked.  Given Facebook’s global reach, including many third world countries, providing financial access to the unbanked could provide a huge spark to global economies.  Additionally, it could provide the growth spark that cryptocurrency needs.

Facebook’s most popular messenger, WhatsApp, has approximately 1.5 billion monthly users.  This application is…

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