When I talk to you about Bitcoin, I constantly explain that I have chosen to be a Bitcoin HODLer rather than a Bitcoin Trader. Daily trading is something that requires specific skills, but also time, lots of time. I'm interested in the price action of Bitcoin daily, I even write about it from time to time for my readers, but I'm a Bitcoin HODLer because it fits my profile. I have total confidence in the success of the Bitcoin revolution, so I let time work in my favor. I understand that others may not make this choice, but that is at their own risk as I always say. That being said, I see at least 10 reasons why you might lose money with Bitcoin or cryptocurrencies if you decide to become a trader. Here they are: 1. -> In life, it's what you don't know that makes you lose the most money. Your goal should always be to increase your knowledge to reduce your ignorance. This will help you make better choices and reduce your risk of capital loss. A lack of knowledge 2. -> Whatever your emotions, they should never dictate your investment choices. No FOMO, No FUD. You let your emotions dictate your choices 3. -> If you choose to trade, you must understand that risk is inherent to this activity. Therefore, you must define a risk management strategy. Poor risk management 4. -> Never let yourself be overwhelmed by this trading activity. Whether things work out for you or not, always keep a cool head. Over trading 5. -> Define a clear plan with goals to achieve and stick to it. Lack of a trading plan 6. -> Trading is a demanding activity that requires discipline. In a market that never sleeps like Bitcoin and cryptocurrencies, it's even more ready. Prepare different scenarios in advance and anticipate them so you don't get overwhelmed. Lack of discipline 7. -> Trading is an addictive activity that is strongly linked to the data and information of the markets and the economy. You must, therefore, be prepared to follow this closely or you will quickly lose your way. Not keeping yourself informed with the data and information of the markets and the economy 8. -> All traders lose money because of bad choices. What you have to do is accept it and minimize your losses by cutting your losses quickly. Too many novice traders refuse to accept and will hold cryptocurrencies for far too long, which will increase their losses even more. Bitcoin is in a class of its own here in my opinion, as you have more guarantees that it is here to stay. For Altcoins, it's all about the trend. And as trends come and go, be prepared... Not cutting losses quickly 9. -> When you've picked the right horse, you should maximize your winnings by not getting out too early. Easier said than done, but this is your goal if you want to trade. Not maximizing winners 10. -> While Bitcoin is here to stay, the vast majority of Altcoins will eventually disappear. The market is purged with each Bear Market and you will need to avoid having your money washed away in these purges. Narratives change between each cycle, and you need to adapt to take advantage of them. Refuse to adapt Trading is a demanding business with multiple challenges. It's up to you to prepare for it if you want to avoid losing big. If you prefer security, you know that Bitcoin HODLing is always there for you. It's up to you! . This article was first published as an NFT on Mirror

At the time of publication, the writer was hodling. 

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