Do you know why you lose money in cryptocurrency? If you don’t even know this, it's best to stay out of the crypto world.
The first rule of survival in the crypto world: first figure out whether you are here to invest or to gamble?
At three in the morning, staring at the K-line chart, are you always thinking: "This dip must be the market maker washing out, let's go all in!"? The next day, the market opens and you see a waterfall, looking at your account in the red, suddenly remembering the new phrase you just learned yesterday — "Contracts are ruthless, but love exists in the world"?
Top Reason for Losing Money #1: Chasing highs and cutting losses is like riding a roller coaster
You rush in and go all in. As a result, you buy at the peak, and when the market maker cashes out, they don’t forget to give you a thumbs up: "Thanks for picking up the shares, buddy!"
🚀
Top Reason for Losing Money #2: Going all in feels good for a moment, but it’s a funeral for the whole family
Always thinking "if I take a risk, the bicycle will turn into a motorcycle," putting in living expenses, mortgage payments, and even credit cards. When the waterfall comes, you can only ponder life on the rooftop: "Should I jump first or delete the app first?"
🎲
Top Reason for Losing Money #3: Technical analysis relies entirely on guessing
Mistaking the MACD golden cross as a buy signal turns out to be a "death trap" set by the market maker; breaking through the upper Bollinger band thinking it will surge, but it’s actually a trap before a crash. In the end, you realize: "So the K-line chart is the most deceitful and flashy thing in the crypto world!"
💰
Top Reason for Losing Money #4: Losing composure leads to chaotic operations
Cutting losses during a crash, and regretting during a surge. As a result, in the cycle of "cut losses - chase highs - cut losses again," you lose all your capital. In the end, you can only comfort yourself: "I’m not trading cryptocurrencies; I’m just paying transaction fees to the exchange!"
📌
Advice from seasoned crypto veterans:
1. Never use living expenses to trade cryptocurrencies.
2. Play dead when it drops 50%, cash out in batches when it rises 100%.
3. During a crash, think "others are fearful, I am greedy"; during a surge, silently recite "others are greedy, I am fearful."
4. Remember: those who survive in the crypto world have weathered many storms.
Finally, I leave you with this:
"There are risks in the crypto world, proceed with caution. If you don’t even know the reasons for losing money, it’s advisable to uninstall the app and go buy Yu'ebao!"