Everyone who has ever tried their hand at cryptocurrency trading knows that the whole process is much more difficult than it appears at first glance. There is a certain learning curve, which varies on a case-by-case basis, but there are tools that can help you flatten it almost completely.
Many aspects of cryptocurrency trading give traders a headache, but they can usually be separated into two categories: trading mistakes (especially those committed by newbies), and cryptocurrency exchange problems. The upcoming all-in-one trading platform UpBots can help you solve these problems (or avoid them altogether) without taking your autonomy, and you will learn valuable lessons from which you’ll be able to take your trading experience with you wherever you go.
Exchange Problems You May Run Into
Cryptocurrency exchanges and other similar platforms have their own share of issues, and even the most experienced traders can find themselves at a loss there. Knowing what those issues are helps you avoid them completely by enabling you to create a selection process for the perfect platform that fits all your needs. While this list is far from exhaustive, it is worthwhile to take a look at some of them and be wary of their precautions.
- Lack of transparency. Unfortunately, many exchanges and other, supposedly reputable, institutions suffer from a lack of transparency which can lead to volume inflation, wash trading, manipulation, false promises, and even money laundering. UpBots, however, is regulated under Swiss laws and their head office is located in Zug, Switzerland. Thanks to that, they’re committed to full transparency.
- Lack of regulation. Closely related to transparency, regulation in the cryptocurrency space tends to be hard to come by. Thanks to UpBots’ Swiss law adherence, users can be rest assured knowing that those institutions have their backs.
- Fees. Exchanges tend to impose higher fees because that’s the main part of their business model. This holds especially true for withdrawing fiat, as they’re looking to keep as much money on the exchange as possible to mitigate any liquidity issues. However, since UpBots is looking to integrate with not just crypto markets, but also traditional ones along with DeFi solutions, there will be a number of ways for users to find the lowest fees on the platform.
Trading Mistakes to Watch Out For
Everyone makes mistakes, but if you learn from them and apply that lesson to your future endeavors, then it’s really not such a huge mistake. Those that can cost you more than just a bruised pride can actually be evaded altogether if you know what you’re doing.
Some of the most common mistakes you should really try to avoid (and that UpBots can help you with) include:
- Lack of paper trading. Paper trading is the practice of simulated trading that lets you learn the ins and outs of trading without risking your actual money. Even veteran traders who want to try their hand at a new strategy usually do it by paper trading first. UpBots offers a training section that teaches you the basics and lets you practice, and they’re also partnered with the upcoming BrainFeed, an online training platform that will teach you everything you need to know about crypto and blockchain. Additionally, you can use social copy trading, in which you set up a bot to imitate a tried and true trading strategy from someone more experienced trading on the platform. Plus, if the trade goes well, the trader you copied gets paid for it!
- Emotional trading. When you’re emotionally invested in a trade, seeing things not go the way you want can be upsetting to the point of panic for many. While separating the heart from the brain is a relatively common strategy among more proficient ones, you don’t have to fall prey to those mistakes even if you’re not there yet: UpBots will let you automate your trading strategy, so the bots will pull out at the moment you set earlier, which means you won’t keep losing money if the trade is going bad and you’re away from the screen. This also means you get to focus on other things without exhausting your energies following price movements.
- No portfolio diversification. No serious trader will have all their funds in one asset, and the most professional ones won’t even have them all in cryptocurrencies, instead diversifying into more traditional assets like mutual funds and ETFs. At the very least, try to have a couple of different coins, as well as a few fiat currencies and assets. You could also get into forex trading that way! UpBots offers all these options through their third-party exchange integration, guaranteeing liquidity and trading volume, but also access to a wide array of assets
- Not enough money. It’s much easier to start trading when you can truly afford it without worrying whether you’ll be able to buy food the next day. However, even if you’re starting out low on funds, using all the tools provided on UpBots (social copy trading, courses, etc.) you can also start generating profits in no time. On the other hand, going into a trade and risking to lose all you have is a subset of emotional trading and can make you susceptible to mistakes.
- Misusing leverage. Many guides will tell you not to use leverage at all, especially if you’re new to trading. It’s true that you will risk going deep into debt if you lose, but it can also increase your profits significantly when playing your cards right. Luckily, the social copy trade system, as well as trading bots, will let you try your hand at leveraged trading the way professionals do it, which minimizes beginner mistakes.
- Not recognizing common scams. There are those who wouldn’t recognize a pump and dump, and then there are those who haven’t even heard of them. First, read up on common scams. Then, analyze some charts and see what their initial period (the one meant to lure you in) looks like. Rule of thumb? If something seems too good to be true, that’s because it probably is. However, you can always learn more through the courses and training features offered on UpBots. With all the information currently available, there’s no excuse to make these mistakes.
More About UpBots
By now, it’s probably clear that UpBots is looking to disrupt the cryptocurrency trading space by becoming an integrated, all-in-one trading platform featuring both digital and traditional assets, as well as DeFi solutions. Important to note is that they have Faculty Capital as their market maker, an algorithmic trading specialist who will also act as their tokenomics consultant, source of liquidity, trading volume, and more.
What this means is that UpBots is not attempting to make yet another exchange. Instead, they’re looking to integrate not only exchanges but also a wide array of trading tools, practices, materials into a single platform where users can find everything they need without logging onto different platforms.
This is a sorely needed concept in the cryptocurrency industry. While most of the features we’ve covered focus on trading, the platform also intends to introduce a marketplace where participants can offer their services, like the above-mentioned trading algorithms, different decision tools, bot creators as well as pre-set automatic trading bots, and a learning center where you can either get a primer on crypto and blockchain or brush up on what you already know.
UpBots is trying to reinvent the wheel by offering a wider range of features than its competitors that include the likes of Trality, eToro, Coinigy, Haasbot, Crypto hopper, and others. For example, UpBots offers market analysis, a risk management tool, as well as being blockchain-based — none of which can be said for any of their biggest competitors in the space. Still, many of these competitors have managed to raise significant funds to jumpstart their projects, simply because they filled a desperate need in the trading space.
Speaking of raising funds, the platform is now moving to a community sale of the UBXT token, having already sold out both the institutional and the private sale rounds. The UBXT Token itself is valued at USD 0.01, but its value is not set in stone, and it may appreciate once it goes live.
As for other important tokenomic features, the platform will also feature a HODL program to incentivize users to keep the UBXT for a certain amount of time by offering bonuses, to slow down the token velocity. This means that investing in UBXT right now, before it boards the hype train, is perhaps the most prudent thing to do should you see the rising interest in trading. You will both become an early adopter, and be able to generate extra income just by HODLing.