Bitcoin price rallies – but don’t fall into this huge trap

Bitcoin price rallies – but don't fall into this huge trap.

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Christian Ploog

christian.ploog@trijo.co

If you as a beginner want to invest in bitcoin and other cryptocurrencies, there are some things that might be good to know in advance.

Bitcoin continues to show strength. This weekend, the price broke through $10,000, and on Tuesday passed the $11,400 level, according to numbers from Bitstamp.

Exactly what it is that drives the bitcoin price upwards is, as usual, difficult to say, but historically, rising prices have also meant that more people are paying attention to cryptocurrencies.

If you as a beginner want to invest in bitcoin and other cryptocurrencies, there are some things that might be good to know in advance. If you have not done your research, one can easily make mistakes.

Now, the trading expert Dennis Sahlström also warns about a typical trap that many beginners fall into.

“One of the most common mistakes people make when it comes to trading and investing is that they let the emotions take over. The well-known expression “Cut your losses short, and let your profits run” may sound very obvious, but it’s hard to stand by in reality”, says Dennis Sahlström to Trijo News.

Important to have a plan

According to Dennis Sahlström, many people are afraid of losing their money if they have made a small profit when they have invested, and therefore choose to sell far too early.

“If, on the other hand, the price drops, the natural reaction is not to sell because you do not want to lose any money. I have done this many times myself and the thoughts that went through my head were that the price will recover. When the price gradually drops lower and lower, you don’t look at it as often”.

The trick to not lose that much money is to have a plan, according to Dennis Sahlström.

“It is therefore important to know at what price one should sell, both for profit and potential loss, before placing a buy order”, he says.

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