Retail tradersâeveryday people trading with their own moneyâoften end up buying crypto when prices are already sky-high. Why does this happen? It's mainly because of hype and emotions. When a coin starts pumping, social media, influencers, and news outlets all start talking about it. This creates FOMO (fear of missing out), and many retail traders rush in, hoping to get rich quick. But by the time they buy, early investors are already selling, causing the price to crash.
Another big reason is lack of a plan. Most retail traders donât have solid strategies or risk management. They buy based on emotion instead of research. They follow the crowd rather than the charts. So when prices drop, they panic and sell at a loss. This cycle keeps repeating, which is why many retail traders end up buying the top and losing money. To win in crypto, itâs key to think long-term, do your own research, and avoid chasing pumps.
what you think about this? Comment your thoughts đ
Follow for more content đ