At midnight, the 2025 Bitcoin conference opens for recruitment; last year's conference saw a three-day rally due to the Bitcoin reserve plan, and the influence of the speech by the 'King of Understanding' significantly increased. However, this year there has been no exciting news released; if there were, we would have seen signs by now.
Don't know which one to buy? Here are the answers:
MERL
Merlin Chain is an innovative Layer 2 solution that brings smart contracts to the Bitcoin network. It uses tools like ZK Rollup to enhance scalability and efficiency, supporting native Bitcoin assets and on-chain dApps, and can connect to EVM. Recently, the price of the MERL token has risen, and trading volume has increased, reflecting investor interest. Its exploration of AI, launching smart guides, is expected to attract more users.
XMR
As a representative of privacy coins, XMR has seen a continuous rise in price recently, with significant gains. It uses advanced technology to protect user identities and transaction privacy, making it popular among those who prioritize security and anonymity. Price predictions indicate a slight increase by the end of May, with considerable market capitalization and trading volume, and RSI showing neutrality, but overall investor sentiment is optimistic.
MOODENG
Moo Deng (MOODENG) has grown rapidly, with an increase of over 676% in the past month and nearly 15% in the last 24 hours, with trading volume surging. Join the Binance contract platform, support high leverage, prices soar, and market capitalization grows. Technical indicators are positive, with MACD showing a bullish crossover, and RSI indicating upward potential, targeting a breakthrough resistance level, but momentum must be maintained; otherwise, the trend may turn pessimistic.
The truth about retail investor losses! Why does buying more as prices fall lead to greater losses?
Recently, a brother was troubled: the coin he bought at 2600 has now dropped to 1800. During that time, he kept averaging down as it fell, increasing his position, but his losses kept growing larger.
But he is not an isolated case.
Research shows that over 60% of retail investors choose to average down when facing losses, ultimately resulting in losses nearly doubling.
Why do I end up losing more even though I want to reduce costs?
Sunk Cost: There is a 'devil' in your brain that refuses to admit mistakes.
Imagine that when the coin price falls from 2600 to 2200, you think: 'It's already dropped 15%; I should average down to lower my cost!'
When it falls to 1800, you think: 'I've invested so much money, giving up now would be a pity!'
This is actually a psychological trap left over from human evolution: the sunk cost fallacy.
Neuroscience research has found that when we face losses that have already been incurred, the 'pain center' in the brain (insula cortex) activates, and the moment we acknowledge a loss feels like being stabbed.
To avoid this pain, the brain would rather have you continue to add positions, holding onto 'hope' instead of facing reality.
The hardest part of investment losses is not admitting defeat, but admitting that you were wrong.
Loss aversion: the more you lose, the more you fear, and the more you fear, the more you 'average down'.
Have you noticed that you always feel particularly anxious every time you incur a loss?
Nobel Prize winner Daniel Kahneman pointed out in (Prospect Theory) that the fear of loss far exceeds the desire for profit.
Losses stimulate the amygdala (fear center) in the brain, triggering a 'fight or flight' response. For the brain, averaging down feels more like a 'fight' posture that can temporarily relieve fear.
But the problem is that each brief rebound after averaging down leads the brain to mistakenly believe that 'averaging down is effective', and you continue to get trapped.
Research shows that frequent averagers ultimately suffer losses that are more than 20% higher than those who cut losses in time.
The more afraid someone is of losses, the worse their losses tend to be.
Mean reversion illusion: why do you always believe 'it will eventually go back up'?
A common mistake investors make: 'It's been falling for so long; it will surely go back up, right?'
This psychology is known as the 'mean reversion illusion'; the brain instinctively believes that all anomalies will return to normal.
However, the market doesn't care about your expectations. If the fundamentals of a coin deteriorate or the overall industry trend turns negative, averaging down as prices fall only increases the risk.
Behavioral finance shows that under the pressure of continuous losses, your rational decision-making ability declines by more than 30%, and emotions begin to dominate decisions.
Falling currencies will not soften just because you keep averaging down.
How to break the trap of 'buying more as prices fall'?
Master this set of anti-human investment strategies:
Step One: Three-dimensional judgment method to distinguish between good and bad costs.
• Fundamentals: How are the competitiveness and development prospects?
• Technical aspect: Are the trends and support levels still stable?
• Emotional aspect: If I had no position today, would I still buy it?
Step Two: Set 'anti-instinct' averaging down rules.
• The interval between averaging down should be no less than 7 days to avoid emotional averaging down.
• The amount averaged down should not exceed 50% of the initial investment.
Step Three: Zero-based thinking, reboot cognition daily.
• Before each market watch, ask yourself: 'If I had no position today, would I still buy it?'
The essence of investment: a struggle against human nature.
Investment is never about fighting against the market, but about battling the greed and fear that are inherent within yourself.
The truly powerful investors do not defeat the market, but understand how to reconcile with themselves.
It is difficult to conquer the market, but it is even harder to conquer oneself.
Closely follow Su Ge, use precise strategy analysis, and select with a huge investment of millions in AI big data, to place yourself in an unbeatable position? The market never misses opportunities; the question is whether you can seize them. Only by following experienced people and the right ones can we earn more!
