Losing Money in Crypto ! 7-COMMON Mistakes
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Losing money in crypto is unfortunately common, especially for new investors. Here are 7 common mistakes that often lead to crypto losses:
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1. FOMO (Fear of Missing Out)
Mistake: Buying a coin after it has already skyrocketed, hoping it’ll go higher.
Why it's bad: You’re likely buying near the top. Sharp corrections can wipe out gains quickly.
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2. Lack of Research (DYOR)
Mistake: Investing based on hype, influencers, or hearsay instead of real fundamentals.
Why it's bad: Many projects are scams, pump-and-dumps, or have no real utility.
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3. Poor Risk Management
Mistake: Going “all-in” on one coin or investing more than you can afford to lose.
Why it's bad: Crypto is volatile. Diversification and stop-loss strategies are crucial.
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4. Storing Crypto on Exchanges
Mistake: Keeping your crypto on exchanges long-term.
Why it's bad: Exchanges can be hacked or go bankrupt. Not your keys, not your coins.
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5. Falling for Scams
Mistake: Clicking fake links, trusting giveaways, or giving out private keys/seed phrases.
Why it's bad: Once funds are stolen in crypto, recovery is nearly impossible.
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6. Ignoring Fees
Mistake: Making too many trades or using high-fee platforms.
Why it's bad: Fees eat into your profits, especially for small traders.
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7. Emotional Trading
Mistake: Panic selling during dips or greed buying during rallies.
Why it's bad: Emotional decisions usually lead to buying high and selling low.
