7 Ways to Cope with Crypto Trading Loss Now

deal with crypto trading loss

Check out 7 Ways to Cope with Crypto Trading Loss and How to stand up and come back more powerful.

A crypto trading loss can be huge financially but emotionally devastating, so let us state you have assumed a confusing misfortune and find out what to do to survive it.

We don’t want to take losses, and we’ll go to great lengths to avoid them. Losing is painful, so our instinct is to look for pleasure and avoid pain. It’s easier to deny taking a loss, so traders come up with many ways of doing this, such as holding on to a losing trade or not acknowledging their failures.

Now comes the part where you ascend over the mismanage you have made in crypto trading. What can you do now? Don’t worry. It isn’t the apocalypse. The critical point here is the question: How do you react to a crypto trading loss?

Your first step is accepting the fact that losses are the norm rather than the exception.

As a new crypto investor, you are expected to make a lot of mistakes while trading cryptocurrencies. Some errors can cost you tons of money. This article will explain the various mistakes many early traders make and how to cope with a crypto trading loss as you trade this ultra-volatile market.

I will show you seven ways to deal with a crypto trading loss. Then I will explain to you how Gunbot can protect you from trading losses. Let’s begin!

Have you ever thought about why you’re losing money in your crypto investment?

Most new crypto traders have the same question, especially after a bear run in the markets. Sometimes the best answer is simple, or you can answer with another question. Am I been patient?

Are you having second thoughts about crypto? Rushing to sell at a loss due to FUD (Fear Uncertainty and Doubt), or even losing faith in crypto, in general, could lead to devastating losses.

Maybe you don’t have to cope with a crypto trading loss if you analyze what could have made you take that loss in the first place. So, let’s see some of the mistakes you could have made before buying.

Are you investing more money than you can afford to lose?

As cheesy or redundant as it may sound, don’t forget this golden rule. Never put money in an investment if you can’t afford to lose it. You should always invest unneeded funds. While it may be difficult, refrain from investing the money you need to survive or pay the rent.

Cryptocurrencies are notoriously volatile, so if you’re holding onto them, it’s imperative to make sure you have enough cash to cover any losses. You can set aside extra money or invest in stablecoins.

Keep it simple: Take calculated risks and only invest what you can afford to hold for the long-term.

Crypto Trading Loss Research

understanding the risk before you start trading is essential

Are you doing your research?

It would be best if you were careful not to fall for scam coins. Scam coins are products that are put on the crypto market to raise money from investors. They do not offer a usable product. Most of these coins fly off the market and disappear after being around for a short while.

Doing your research is very important regardless of your trading style or even if you’re trading with a bot. The world of cryptocurrencies is still a wild one.

There are so many exchanges, new cryptocurrencies being developed, and it’s relatively simple to create one. So, these new altcoins become the breeding ground for low trading volume and increased volatility altcoins, those with scammers who can “pump and dump” them.

Cryptocurrencies are high-risk speculative investments. Understanding these risks is essential before starting to trade. Here are 3 of the most significant risks of trading crypto.

  1. Crypto is volatile: Market sentiment can change in an instant, leading to big moves in prices. Unforeseen changes in opinion or a quick drop in the altcoin market can lead to a sharp decline in prices.
  2. Crypto is unregulated: Cryptocurrencies can be affected by their regulations. Sometimes a government will decide crypto, and the prices will change. The crypto’s rise has been suppressed every time a government has cracked down on them, and each country has a different approach to implementing them.
  3. Hard-forks or shutdowns can strike crypto: Crypto trading holds additional risks such as hard forks. When a hard fork occurs, there may be substantial price volatility around the event. A cryptocurrency can be shut down or exited by its developers and suspended or delisted from trading on the exchange.

You’ve heard it all before. “Crypto is easy money.” It’s the false notion that many are led to believe in when they first hear about blockchain technology. But in reality, there is nothing easy about making money through trading any financial asset, whether stocks, forex, or cryptocurrency.

If someone tells you otherwise, they’re probably trying to trick you into making crypto mistakes.

7 Ways to Manage a Crypto Trading Loss

how to cope with crypto trading losses

Have you ever had a situation where you were sure that you would win but somehow lose? It isn’t charming, but you have to admit that it’s a part of winning. And to help you with that, here are seven ways to deal with a crypto trading loss.

1. Taking Ownership of It.

Losses happen to traders all the time. Some losses are due to bad luck, and some can be attributed to inexperience. The key is to understand that you must take responsibility for your orders. You cannot blame others or be passive.

Take it like a grown-up. Realize that you have committed an error, and it is a reality. Quit accusing any person or thing else.

Taking ownership of a slip-up is the beginning. The sooner you understand that errors happen and will happen at any point, the sooner you will get once again back into the game.

If you continue to repeat the same mistakes, you will not grow as a trader. When something goes wrong, take responsibility for it. Acknowledge how it may have been your fault.

If you do this, then there is less chance of the problem occurring again. Blaming others for what went wrong will make you feel angry and frustrated. Instead, let go of your hostility and work on figuring out what could have been done differently.

I’m not saying you shouldn’t take a break and analyze what went wrong, access the situation, and review the cause, all that is part of coming back stronger.

When you trade, you control the experience, even if you’re dealing with a bot. You can modify your strategy or trading style or even change the market you’re trading.

2. Gain from It.

Each error is a learning experience. A negative experience is a great motivation to keep learning and developing new skills.

Regardless of your self-importance, greediness, or some imperfection in your estimations or method, there is always something to learn. At any rate, you comprehend what not to do next time.

It’s always a bummer when you lose money. Now, instead of being discouraged about it, be motivated to read more, better educate yourself, become more disciplined in your execution, and so on.

Next time, you’ll have a better idea about what happened and where it went wrong. You’ll have room for improvement, and you’ll be stacking the odds in your favor!

The crypto showcase isn’t as unforgiving as you would suspect. It is a landscape of possibility and opportunity.

3. Attempt Another Way.

1. What was your strategy? 2. What indicators did you use? 3. What were your trading rules?

Ask yourself those three questions since now you know the weak points in your strategy, rethink if you would change that part alone, or attempt another way.

Disappointment allows us to glance at our arrangement from far off to give us a more incredible picture.

Have you been having a lot of trades like this? A crypto trading loss is a perfect opportunity to get ahead of the problem and make some changes to how you trade.

On the off chance that the issue is, by all accounts, your dread of losing or a framework that doesn’t fit you, you can, without a doubt, try a superior and new crypto trading strategy once you open your mind to it.

4. Evaluate the Impacts of the Slip-up.

evaluate the impact of the slip-up

What are the progressions from your past circumstance?

You may find that you are not more awful off. You may be exaggerating somewhat about the circumstance. Be that as it may, on the off chance that the slip-up has broad impacts, at that point better to show them.

You can assess which impacts you have to fix along these lines and which you can fail to address.

For instance, you may have lost some trades, yet you will find that it is plausible or not by posting the advantages and disadvantages on the off chance that you can see an opportunity to recoup it.

When you’re having a tough time, trading can be challenging. You may want to “play it safe” by skipping trades, or you might feel like you need to get back to your old winning ways quickly.

Unfortunately, these approaches can only serve to make the situation worse. A significant loss can affect your confidence, and that can cause emotional issues when you trade.

5. Get More Organized.

You needed an order before. Right now, it is the most obvious opportunity to wake up and make a solid new strategy where you will base every one of your choices.

Please get familiar with the indications of your mistakes to maintain a strategic distance from them.

When a lack of confidence disrupts your trading, making a few small trades and working on the problem is essential. It will allow you to complete some transactions and earn some profit.

Trading again will build your confidence in your trading abilities.

To get back into your usual pattern, start small by making a few trades that you are very confident in. Make a few exchanges for a small profit and regain the confidence to take on more significant transactions.

Trading should not be about luck or emotions. Emotional trading is not a sound strategy; it’s gambling and will make you lose more money quicker. If you win, you will think it’s a success and try it again, but that isn’t a good strategy either. Please don’t engage in it!

It would be best if you were not trading based on revenge or fear either. It is best to plan your trades out carefully beforehand because if you don’t, you will have to take more risks on transactions you barely scheduled for.

I know you’re feeling anxious and restless about your trading system, and you want to get back in the game ASAP. Don’t worry; the crypto market will not go away tomorrow.

It would help if you took this time away from charts to work on new ideas and keep learning to improve your trading.

6. Come Back Stronger.

I realize it is easy to state, yet the best thing to do is toughen up and get back in the game. Investors don’t call crypto trading one of the best ways to make money online for no reason.

When you see an altcoin dropping, for sure, another is rising somewhere. There is an opportunity for profit anywhere in the cryptocurrency marketplace. Remember that your success is right around the corner if you tread wisely and take the right risk management approach.

When you feel like you’ve lost your way, go back to the basics. Going back to the fundamentals includes focusing on the trading plan, adjusting it as necessary, and implementing it well. It might be a wake-up call when you hit a bump in the road, and the market is letting you know that you’re off course.

Finally, consider that you’re not alone. Before and after you, there have been and will be others that have taken a crypto trading loss. That might sound harsh, but it is how it works. Others have to take losses for somebody to win, and they have learned their lessons from failure.

Crypto trading is complex and challenging, but you have to keep learning and repeatedly trying until you finally make money with it.

7- Get Gunbot

Take advantage of Gunbot features that help you cope with a crypto trading loss. Yes, Gunbot has a safety switch that will protect you from losing your hard-earned money.

Let me explain, Gunbot has a set of parameters that you have to set to make sure it works, but once you’re done, it will be impossible for the bot to trade at a loss.

Most Gunbot strategies won’t place a sell order below the break-even point. Read More about strategy protections on the Gunbot Wiki.

Gunbot has different trading strategies, and these methods have protections. For example, some plans will buy only once. Another parameter you can use is (buy level) to protect you against buying above the lowest EMA.

Why is a trading bot important to your crypto trading loss?

One of the main features of Gunbot is that it comes with many strategies included. These rules will give you a trading structure and will allow you to plan. A trading plan with risk and expected gain gives you a goal to aim for instead of trading aimlessly.

Emotions and the urge to overtrade is a common problem newbie traders face. If you set your strategy and define your targets, you can relax and watch the bot executing the trades.

Setting your trading rules helps you to remove the pressures that can cause you to overtrade. It also keeps you disciplined because it gives you a structured plan that you can stick to.

Gunbot also includes other perks like being part of a solid crypto trading community, where you will get lots of ideas and tips. You will gain valuable crypto trading information by reading or asking questions in the Gunthy exclusive telegram groups.

Automatic Trading Handling a Crypto Trading Loss

gunbot trading chart showing trading losses

An automatic trading system allows you to forget about the operational monitoring of the system since the entire process of calculating orders and sending them to the market is done automatically by the program.

In my opinion, the fundamental aspect of a trading system is that its rules of action must be 100% objective. And do not depend on the subjective interpretation that the investor can give it.

After years of experiencing the development of professional automatic trading systems, I can safely say that the key to making money investing with a trading system is to manage the risk that you are willing to assume appropriately.

Sadly most new investors do not like to talk about risks, and they’re only concerned with knowing how much they will earn. Please stay away from that line of thought, which, in my opinion, is a huge mistake.

Earning money investing with automatic trading systems will be the consequence of having done your homework correctly in the process of selecting the strategies you’re going to operate.

And the key is to choose a trading method whose risk characteristics are aligned with your profile as an investor.

Therefore, the critical question is: How much are you willing to lose?

Yes, it may seem complicated to talk about losses. And it is probably not a good marketing idea. But it is realistic.

Suppose you are not able to do this preliminary analysis. In that case, you will most likely lose money because you will focus on choosing trading plans you think are making money without stopping to analyze if those automated trading systems are suitable for you.

You can be lucky and select some methods that will make you earn money in the short term. But in my opinion, you are here to try to make money consistently in the long run.

And therefore, the more importance you give to the need to control the risk of your investments with automatic trading systems, the better.

Again, your main focus when using a strategy is on controlling risk. Do that, and you’ll keep your crypto trading loss under control.

The important thing is to know how much you earn for each unit of risk you assume. And seek strategies that are not necessarily spectacular in absolute results but consistently achieve good results with highly controlled risk levels.

Lastly, you may ask the question. Why don’t more traders succeed?

It’s not because of their lack of skills, but because of their lack of determination. Though it may be difficult, starting after a losing streak is necessary for success.

Quitting before you learn the skills needed to become a successful trader will make you part of the vast majority who cannot trade crypto successfully. Don’t give up; become part of the few profitable crypto traders.

One last tip. Did you know that you can report your crypto trading losses on your income tax?

If you have made any crypto losses, the IRS recommends that you report them. Reporting your crypto trading loss on your taxes can potentially lower your tax liability by claiming deductions or offsetting your income. Learn more about how to file your crypto taxes here.

There you have it, seven ways to deal with crypto trading loss. I genuinely hope this article can help you grow as a crypto trader, and stay tuned for more crypto trading and Gunbot articles.

You’re now a more knowledgeable trader. Are you ready to take your trading to the next level?

Your first step is grabbing your copy of Gunbot now so that you can start your journey into profitable cryptocurrency trading the easy way. With the support of a crypto trading bot!

trade like a pro, get gunbot