Here are some great (common and costly) mistakes made by crypto traders:
1. Lack of Research (FOMO Trading)
Jumping into trades based on hype or fear of missing out, without understanding the project or market conditions.
2. Ignoring Risk Management
Risking too much on a single trade or not using stop-losses can quickly wipe out a portfolio.
3. Overtrading
Trying to catch every move in the market often leads to exhaustion and poor decision-making.
4. Emotional Trading
Letting greed, fear, or revenge dictate trades instead of logic and a well-defined plan.
5. Using Excessive Leverage
Leverage can amplify gains but also magnifies losses. Many traders get liquidated due to poor leverage use.
6. No Exit Strategy
Holding onto positions without a clear profit-taking or stop-loss strategy can turn winning trades into losses.
7. Blind Trust in Influencers
Following crypto influencers or YouTubers without verifying their claims or doing due diligence.
8. Neglecting Security
Keeping large sums on exchanges, using weak passwords, or falling for phishing scams leads to losses.
9. Chasing "Pump and Dumps"
Getting into manipulated coins or tokens that are artificially inflated and then dumped.
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