How not to go broke on cryptocurrencies. Top 3 mistakes of “crypto hamsters” Valery, Private Capital Manager at the Currency.com crypto exchange, in a podcast on RBC-Crypto about whether it is possible to buy Bitcoin at any price, how to use leverage correctly and what a correction is.

In the cryptocurrency space, experienced traders call newcomers “hamsters.” They often make serious mistakes that lead to large losses or complete loss of funds. Valery, Private Capital Manager at the Currency.com crypto exchange, spoke in a podcast on RBC-Crypto about how to minimize the risks of working in the digital money market. Some excerpts from the podcast:

“The first mistake is using leverage. When choosing a trading strategy using leverage, very often novice traders and investors incorrectly calculate volumes based on acceptable drawdowns. Beginners do not take into account that it is necessary to leave free funds for security. Even if, based on the fundamentals, the trade would sooner or later become profitable, due to the lack of free funds to maintain the drawdown, losses can be incurred.” “The second mistake is buying on highs.” Often, a novice user wants to buy, even if pronounced overbought zones are visible on the daily timeframes. Perhaps the growth will continue. But it’s much safer to buy from a correction, although that’s when you don’t want to buy.” “The third mistake is the lack of stop losses. Because of this, you can not only lose earned profits, but also incur losses. It is important that you cannot buy at highs without stop losses.”

• What's happening. All about the main events in the cryptocurrency sphere at the beginning of 2021

— Criticism of Bitcoin, praise of Dogecoin. What Elon Musk says about cryptocurrency

— Who needs bulba coins or how Currency.co was launched