Here are major mistakes commonly made in crypto trading that can lead to losses or missed opportunities:
🚫 1. Lack of Research (FOMO/FUD Trading)
Mistake: Buying just because everyone else is or selling due to panic.
Example: Investing in meme coins or new tokens without checking the project’s credibility.
Fix: Always DYOR (Do Your Own Research).
💸 2. Overleveraging
Mistake: Using high leverage (e.g., 50x, 100x) to try and make quick profits.
Result: A small price move can liquidate your position.
Fix: Use low or no leverage, especially as a beginner.
📉 3. No Stop Loss / Exit Plan
Mistake: Not setting stop losses or knowing when to exit.
Result: Turning a small loss into a huge one.
Fix: Always use stop-loss and take-profit levels.
🤖 4. Following Random Influencers
Mistake: Relying on unverified Twitter, TikTok, or YouTube “experts.”
Result: Falling into pump-and-dump schemes.
Fix: Follow credible analysts and double-check any advice.
⏳ 5. Impatience / Overtrading
Mistake: Making too many trades in a short time.
Result: High fees and poor decisions due to emotional trading.
Fix: Be patient and trade only when there's a plan.
🎯 6. Not Understanding Risk Management
Mistake: Betting too much on one trade (e.g., going “all in”).
Fix: Use position sizing; never risk more than 1–2% of your capital per trade.
🧠 7. Emotional Trading (Greed & Fear)
Mistake: Greed during bull runs, fear during dips.
Fix: Stick to your strategy and control your emotions.🏦 8. Leaving Funds on Exchanges
Mistake: Keeping all crypto on centralized exchanges (CEX).
Risk: Exchange hacks, bankruptcies (e.g., FTX).
Fix: Store long-term holdings in hardware wallets or self-custody wallets.
📊 9. No Strategy
Mistake: Buying and selling based on gut feeling.
Fix: Have a trading plan, whether it’s scalping, swing trading, or long-term investing.
💼 10. Ignoring Taxes / Legal Issues
Mistake: Not keeping records or understanding local tax rules.
Fix: Track your trades and consult a tax adv
isor if needed.