1. Extreme Volatility
What: Crypto prices can move 10-50% or more in a single day — much faster than stocks or forex.
Why: New traders often get emotionally shaken (fear/greed), leading to bad decisions like panic selling at the bottom or FOMO buying at the top.
👉 Tell them to always prepare for wild swings.
2. No Guarantees, Only Probabilities
What: There are no sure bets in trading, even if "everyone" is hyped about a coin.
Why: New traders often believe a project will "definitely moon." In reality, even strong setups fail.
👉 Teach them: trading is about managing risk, not being "right."
3. Risk of Total Loss
What: They can lose 100% of their capital if they don't manage risk properly, especially with leverage.
Why: Many beginners think only gains are possible. They don't realize crypto markets can crash brutally and never recover to old highs.
👉 Warn: only invest what they can afford to lose.
4. Leverage = Faster Death
What: Using leverage (2x, 5x, 10x...) magnifies both gains and losses.
Why: Beginners often misuse leverage and get liquidated (losing their entire position) in minutes during sudden moves.
👉 Strongly advise: avoid leverage until they're consistently profitable with spot trading.
5. Fake Hype and Pump-and-Dumps
What: Many "hot" coins are manipulated by insiders to create artificial pumps before dumping on retail traders.
Why: New traders trust influencers or friends hyping coins on Twitter, Telegram, etc. They enter late and become exit liquidity.
👉 Teach them to verify fundamentals and be skeptical of too-good-to-be-true promises.
6. Emotional Trading = Guaranteed Failure
What: Trading based on excitement, fear, or boredom leads to big mistakes.
Why: Beginners often revenge-trade after a loss, or overtrade after a win, wiping out their gains.
👉 Stress: discipline and pre-planned strategies beat emotions.
7. Scams and Fake Platforms
What: The crypto space is full of scams — fake exchanges, phishing attacks, rug pulls, fake wallets, etc.
Why: Beginners trust flashy websites or fake airdrops without checking legitimacy, and lose everything.
👉 Always recommend sticking to trusted exchanges (Binance, Coinbase, Kraken) and verifying every website link carefully.
8. Overtrading and FOMO
What: Beginners think they must be in a trade all the time to make money.
Why: Constant trading without solid setups leads to random losses and emotional burnout.
👉 Remind them: in trading, patience pays — no setup, no trade.
9. Neglecting Risk Management
What: Many new traders enter positions without using stop-losses or considering position size.
Why: One bad trade can wipe out weeks of gains — or their whole account.
👉 Push them to learn: Always use stop-losses and only risk a small % of capital per trade (like 1-2%).
10. Ignoring Macroeconomic Events
What: Global news (interest rates, regulations, wars) heavily impact crypto markets.
Why: Beginners often wonder why Bitcoin is dropping when "charts looked bullish" — unaware that a Fed meeting or regulation announcement crushed risk assets.
👉 Teach them to pay attention to big economic news and not only charts.
11. Thinking Short-Term Only
What: Focusing only on making quick gains instead of building skills and strategies for the long term.
Why: Beginner traders want fast riches but often end up broke.
👉 Shift their mindset to view trading as a skillset that compounds slowly.
12. Underestimating Psychological Pressure
What: Crypto trading is emotionally exhausting: fear, greed, stress, impatience.
Why: Beginners get overwhelmed, make emotional decisions, and give up after losses.
👉 Advise them to expect emotional swings and work on mental discipline as much as technical skill.
