$BTC Why do most people fail to make money in the cryptocurrency market?
Core reason: Emotional interference. The high volatility of the cryptocurrency market amplifies fear (FOMO) and greed, leading to chasing highs, panic selling, frequent trading, or cutting losses.
How emotions undermine investment:
Human weaknesses: Ordinary people are easily influenced by market emotions, buying at highs and selling at lows, contrary to market principles.
The difficulty of dollar-cost averaging: What seems like a simple strategy requires long-term commitment, enduring unrealized losses, is counterintuitive and 'slow'; many abandon or distort their strategy due to emotions (e.g., buying high and selling low).