In the cryptocurrency market, many retail investors often fall into typical mistakes due to emotional influences. Here are two common investment traps that are worth paying special attention to:
The behavior of chasing highs and selling lows is a psychological pitfall that many investors find difficult to avoid. When coin prices rise rapidly, they often enter the market at high points out of fear of missing out, lacking calm judgment; but once the market turns sharply downward, they panic and exit at low points. This operational mode contradicts the basic principle of 'buy low and sell high,' ultimately leading to reverse trading and paper losses.
Another common mistake is impulsive entry and exit driven by emotions. Many people, seeing a certain cryptocurrency surge in a short period, blindly follow without in-depth analysis, or easily believe rumors and opinions from social media and group influencers. Thoughtless trading behavior not only lowers the win rate but also can lead to wrong decisions during periods of market volatility, increasing the chances of losses. Therefore, rational analysis and self-judgment are key to reducing risks.