If you have not read the other 3 parts of this article, you can catch up with them on the below shared links.
Part 1: here
Part 2: here
Part 3: here
10. Not taking advantage of arbitrage
New traders are mostly unaware of arbitrage. They go the same route that everybody does without exploring other options and end up getting the same results as everybody else.
Arbitrage is when you sell and buy your coins simultaneously in different markets to take advantage of different prices of the same coin.
Say a coin is priced at Rs.10 in one exchange and priced at Rs.11 in another exchange. What you do, as you must have already guessed, is simple: buy it in the exchange where it’s priced less and sell it where it’s priced higher. Simple as that. All you have to do is thorough research of exchanges before trading.
11. Not knowing the deposit and withdrawal rates
This is another common mistake of new traders. They don’t research well and end up trading in exchanges where fiat deposit and withdrawal rates are high. This would eventually drain all your holdings. So always make sure to know the exchange rates of deposit and withdrawal before trading in a particular exchange.
12. Not knowing what to do when the market goes up or down
This is another prominent confusion among new traders. They do their research well, they invest wisely, but are completely clueless regarding what to do when the market goes up or down.
A simple thing to do when such confusion encapsulates you is to convert all your holdings into a stable coin. This will help you prevent your losses substantially.
