Here are 7 common crypto trading mistakes that are especially relevant today, considering the volatile market, regulatory updates, and shifting sentiment:

1. FOMO Buying (Fear of Missing Out):

Chasing pumps after seeing coins surge on social media or news can lead to buying at the top and getting trapped in a correction.

2. Ignoring Market News & Regulations:

Crypto is heavily influenced by global regulatory news. Ignoring updates—like new ETF approvals or government crackdowns—can lead to poor decisions.

3. Overtrading in High Volatility:

With today’s volatile conditions (e.g. BTC swings, halving aftermath), frequent trades without strategy can lead to losses due to fees and emotional decision-making.

4. Relying Only on Social Media Tips:

Taking trades based on Twitter/X threads, Telegram groups, or influencers without personal research is risky, especially in today’s hype-driven market.

5. Neglecting Risk Management:

Not using stop-losses, risking too much per trade, or going all-in on a coin can quickly wipe out capital, especially during sharp market corrections.

6. Trading Without a Clear Plan:

Many traders enter and exit positions impulsively, especially during current market uncertainty. Lack of a plan leads to reactive rather than strategic decisions.

7. Ignoring On-Chain & Technical Indicators:

With tools now widely available, ignoring indicators like RSI, volume, or on-chain wallet flows can mean missing early warning signals.