Alongside bitcoin trading tips involving risk management and strategy, there are also emotional factors that you need to be aware of, most notably, the fear of missing out (FOMO).
Due to bitcoin’s extreme volatility, it is not unusual to see dramatic price spikes in a very short space of time and it can be tempting to buy-in to an upward trend, fearing you’ll miss out on major profit if you don’t.
However, this goes against the most basic rule of trading – buy low, sell high.
If bitcoin has skyrocketed, it’s likely you’ve already missed the advantageous point of the upward trend, and you’ll end up paying a premium for an asset that will inevitably decrease in value, placing you at a significant loss.
Falling victim to FOMO is one of the main reasons so many beginner traders fail. Be wary and accept that some profitable opportunities just weren’t meant for you.