Mistakes to Avoid in Crypto Trading

4 min readJun 17, 2024


Lack of Basic Crypto Knowledge/Lack of Research

Crypto investors, especially beginners, may get attracted by the hype surrounding crypto tokens such as BTC and ETH, but investing in crypto tokens requires understanding the asset class. You can become a better crypto investor if you take the time to research different crypto projects, their purpose, consensus mechanism, social media presence, and supply.

Ignoring trading costs

Crypto traders can execute multiple trades in a single day, but they have to pay a fee to the exchange each time they make a trade. These costs can add up over time and cut into your profits. Some crypto platforms may charge a fee each time you deposit or withdraw tokens from your trading account.


FOMO, or fear of missing out, is a state that drives crypto traders to make impulsive decisions. For example, FOMO leads traders to buy crypto tokens when prices are rising in the hope of capitalizing on further gains. This leads to impulsive buying at the top of the price cycle and can result in significant losses when the prices correct themselves.

It can also lead to crypto scams. Many investors have been duped into putting their money in Ponzi schemes or fake projects because they do not want to miss out on the next big thing.

Losing keys or seed phrases

A digital or crypto wallet is a key to your tokens and blockchain. Losing your private key or the seed phrase can be devastating, as you may no longer have access to your crypto holdings. Store your seed phrases carefully to secure your crypto assets.

No crypto trading strategy

Trading in crypto without a strategy can lead to losses. A trading strategy can help you pick the correct token. It can also help you decide when to buy or sell crypto tokens, helping you time the market.


Amateur crypto investors may be enticed to use leverage to multiply their returns. Leveraged trading requires up-front collateral, if a trade goes south, you may lose all the collateral money. Leverage in crypto trading works both ways, as it can multiply your losses as well. You can use this trading strategy after you have gained valuable trading experience.

Sending tokens to the wrong wallet address

Transferring crypto tokens between wallets is how you own crypto from an exchange or send funds from one user to another. Crypto users can mistype the wallet address when attempting to transfer crypto to a digital wallet. Crypto can be sent to the wrong wallet address and may never be recovered.

Failing to diversify your portfolio

Many crypto investors put all their eggs in one basket; they might invest all their money in a single crypto project. This is risky, as you can lose all your investment if the crypto asset rapidly loses value. You can diversify your portfolio by investing in different crypto projects to mitigate this risk, as you can rely on other assets to offset the loss of one.

No effective tracking

You can track your crypto portfolio effectively by setting a benchmark return and regularly studying the crypto market to better understand your portfolio.

Crypto mistakes to avoid

Not choosing the right crypto exchange

You need to spend time on research to choose the right crypto exchange platform to begin trading. Many traders rush into making this first step, which can be a mistake. Here are some features to consider when selecting a crypto exchange

  • User-friendliness of the exchange
  • Wide range of crypto to invest in
  • Security and platform authenticity
  • Good prices and low fees
  • Reliable customer support

ZebPay has been around since 2014 and is one of the oldest and most trusted crypto exchanges in India.

Emotional Investing

Allowing emotions to dictate crypto investments can lead to irrational decisions during a volatile period of the market.

Making Too Many Trades

This crypto mistake is a combination of panic selling and FOMO. Some traders tend to execute multiple trades in a short period. They sell one crypto for another for bigger gains. This strategy can never guarantee a good return, but one thing is for sure: you will end up paying more exchange fees. There is also a possibility that you may exit multiple tokens at a loss, compounding the losses. You should stick with fundamentally sound crypto tokens to avoid this mistake.

Ignoring technical and fundamental analysis

Crypto technical analysis can help traders identify market movements and trends. You study a crypto project’s features, the team behind the project, and social media engagements in fundamental analysis. These research strategies can help you determine a crypto project’s true worth, and ignoring them can prove costly.


Whether you are new to crypto trading or an experienced trader, it is vital to be aware of the most common crypto trading mistakes. You can earn profits and grow as a crypto investor by avoiding these mistakes. Some of the suggestions made in this article to avoid these mistakes are not equivalent to financial advice, so please do your due diligence before making a crypto investment decision.

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Disclaimer: Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. Each investor must do his/her own research or seek independent advice if necessary before initiating any transactions in crypto products and NFTs. The views, thoughts, and opinions expressed in the article belong solely to the author, and not to ZebPay or the author’s employer or other groups or individuals. ZebPay shall not be held liable for any acts or omissions, or losses incurred by the investors. ZebPay has not received any compensation in cash or kind for the above article and the article is provided “as is”, with no guarantee of completeness, accuracy, timeliness or of the results obtained from the use of this information.