Why many crypto traders lose money?
Why many crypto traders lose money: Problem: Using only Centralized Exchanges (CEX)
Newcomers often struggle with CEXs like FTX or Coinbase due to their limited listings. 99% crypto projects never list on a CEX.
Solution & Recommendation: Decentralized Exchanges (DEX)
To fully exploit crypto trading, using DEXs like PancakeSwap or UniSwap is key. Learn to use TheSphynx.co, a DeFi platform compatible with 14+ networks/blockchains, for effortless access to popular DEXs and giving you access to virtually all projects!
Problem: Custodial Wallet Risks:
Newcomers often entrust their assets to centralized exchanges, risking loss due to bankruptcy or security breaches.
Solution & Recommendation: Non-Custodial Wallets
Use non-custodial wallets like MetaMask or TheSphynx.co to maintain control over your assets. Never share your 12-24 word keyphrase. Use The Sphynx Wallet TheSphynx.co wallet is a secure, multicoin non-custodial solution, requiring no manual configuration.
Problem: Not Understanding Stablecoins, Native Coins, and Tokens
Grasping the distinctions between these is key for trading in the crypto space.
Solution & Recommendation: Learn and research various types of crypto assets, how they work. For example, Stablecoins like USDT maintain a fixed price; native coins like BNB or ETH serve as blockchain currencies; tokens are project-specific currencies on a blockchain.
TheSphynx.co DeFi app offers an intuitive interface for trading various assets.
Problem: Not understanding Tokenomics, Slippage, and Taxes
Understanding these elements is crucial to prevent losses or missed opportunities.
Solution & Recommendation: TheSphynx.co simplifies trading by automatically setting slippage and sourcing the best prices from supported DEXs.
Problem: Limit and Stop-Loss Orders
In the 24/7 crypto market, using limit and stop-loss orders is essential for risk management, a feature lacking on many DEXs.
Solution & Recommendation: TheSphynx.co DEX
TheSphynx.co DEX supports limit and stop-loss orders.
Problem: Not knowing how to earn passive income from crypto assets.
In DeFi, you can stake your crypto assets or add them to liquidity pools to earn rewards, but each investment has its own risk profile.
Solution & Recommendation: Use TheSphynx.co, which offers hyperpools for farming, staking tokens, coins, and NFTs and multiple rewards for each - native to stablecoins in rewards.
Problem: Not knowing how to efficiently and quickly utilizing dApps and tools.
To effectively navigate the world of DeFi, traders often use different tools and decentralized applications (dApps). For instance, they might use PancakeSwap DEX to purchase tokens from Binance Smart Chain (BSC) projects. They can then utilize DexTools or PooCoin to analyze charts and Bogged Finance to place limit or stop-loss orders. Afterward, they may transfer their assets to a centralized exchange (CEX) account to cash out profits.
Solution & Recommendation: Simplify your process by using TheSphynx.co, an all-in-one dApp. This platform eliminates the need to visit multiple sites, reduces the risk of connecting your wallet to phishing sites, and safeguards your assets. With TheSphynx.co's comprehensive interface, you can perform all necessary tasks in one place.
Problem: Not knowing how ot cash out profits effectively.
Newcomers often struggle to effectively convert their earnings into stable coins or to withdraw funds from a CEX account, which can be risky.
Solution & Recommendation: TheSphynx.co VISA card.
Sphynx offers Visa cards that can be loaded with your crypto assets for a secure and convenient way to spend your profits.
You can use TheSphynx.co on your browser or you can download Sphynx DeFi App on Apple App Store, Google Play store. This is probably the only app you're going to need for your crypto trading - from wallet, to advanced trading, to earning passive income, to cashing out - all-in-one