You know what? There are Five major known problems crypto traders (even expert ones) face. Let’s take a look at them.
Humans are emotional beings. They tend to step out of their comfort zone and change their plans whenever an uncomfortable situation arises. When it comes to trading, crypto trading experts often feel an extremely significant disparity between their intellectual goals and emotional state.
Here intellectual goals mean earning money stably by making precise deals and emotional state here means not to lose money by any means.
Usually, the mismatch occurs due to the volatile nature of the crypto market and its unpredictable behaviour.
Let’s speak of an example here: A profitable trading strategy that returned 2 or 5x profits in the past may suddenly fall back. Who knows? It may even lead to equal losses.
Even professional crypto traders are prone to this contradiction with subsequent emotional changes of plans. This is the start of the disruptive cycle.
Mr Steenbarger’s two-part story states that “it is essential to analyze markets in terms of important events, not a general timeline. For this, a trader should learn and watch for volatility, volume, correlation movements, unusually weak or strong sectors, and the ratio between pumping and dumping coins. It should help to catch the industry’s pace.”
Solo Vs. Accompanied
From the title itself, you can see that this problem is mutual. In the first case, we can see that trading is a solo act. When a trader plays with high investments, he/she will barely trust the so-called colleagues because they also hunt for the best profits—the trader benefits from all the deals, both gains and losses.
On the other hand, if a person is into professional trading (if trading is his/her primary job), the people around him/her (to be accurate, their friends and family) are the cause of initial problems.
They don’t understand what the trader is up to and will simply ask silly questions such as why BTC isn’t at $100,000 yet, which coins will skyrocket tomorrow, how to start investing, is crypto mining still profitable, and so on.
Lack of Skills
Another common issue points towards specialized and hardly transferrable trading skills. Expert traders see it as the challenging and most threatening issue due to the occurrence of unstable economies.
In case of a significant crypto bubble burst, hundreds and hundreds of devoted traders will keep themselves out of business. It means that professional traders are doomed to make deals for life. Of course, it’s not an issue for young beings who can change their moves quickly.
To solve this issue, traders will have to allocate their time to develop other skills such as studying financial-related courses, try to provide consultations, work with banks, and so on. Just be sure that it’s exciting and rewarding enough.
Stress Level to the Maximum
The more the time a trader spends his/her time in an activity, the more stress it generates in case something isn’t going according to plans. Since it has become a necessity for crypto traders to be good at all time, they will definitely face major burnout.
Crypto markets are unpredictable, and they keep on reminding traders of their incompetence. And this leads to significant problems such as health issues and various diseases. We all know that stress is a pretty undervalued threat to the modern world.
Sometimes, stress not an issue for expert traders at all. When a trader adopts crypto trading in his/her daily life, it becomes part of the routine. Also, the trader has to consider life outside the crypto world, like going out, watching movies, and other hobbies.
Crypto traders have no choice but to use a crypto exchange or the other. These exchange platforms act as mediators or interfaces for traders who buy and sell digital currencies.
You all know that there are two types of cryptocurrency exchanges:
- Centralized Exchanges
- Decentralized Exchanges
Professional traders face both security and liquidity issues. Traders of centralized crypto exchanges are afraid of security threats and hacks while decentralized exchange users can rarely make big deals because of the low volumes in the market.
The issues also include high transaction fees, lack of crypto coin pairs, poor customer service, and inconvenient interface.
TBH, this problem is familiar with all types of crypto traders. We can suggest prioritizing features. If a trader needs high liquidity, he has to look for reliable centralized exchanges that were never hacked. If they prefer perfect security, focus on the most popular DEXs.
So what’s the solution(s) for all the problems mentioned above? The only solution is employing a trading bot. Bots are designed to trade with no emotions, and they do what they’re programmed to do.
NexFolio is an automated crypto trading bot designed to assist traders of all levels in crypto trading. Our bot helps in analyzing the trends of the fluctuating crypto market and make your trading profitable despite the market conditions.