The newbies who enter and exit the cryptocurrency circle basically lose a lot of money, which is nothing more than the following points

Lack of basic knowledge and research: Many newbies do not fully understand the basic concepts of cryptocurrency, market operation mechanisms and project background before entering the cryptocurrency circle, resulting in a lack of basis for investment decisions and being easily affected by market sentiment.

Chasing up and selling down: This is one of the most common reasons for losses. When the price of the currency rises, investors blindly chase high prices for fear of missing opportunities; when the price of the currency falls, they sell at low prices due to panic. This behavior pattern usually causes investors to buy high and sell low, resulting in losses.

Overtrading: Frequent trading not only increases transaction costs, such as handling fees, but also increases the chance of making mistakes. In the absence of a clear trading strategy, overtrading can easily lead to rapid loss of funds.

Improper risk control: Many investors have not established an effective risk management mechanism, such as not setting stop-loss points or not knowing how to diversify their investments. Once the market changes unfavorably, they may suffer large losses.

Emotional investment: Investment decisions are driven by emotions rather than rational analysis, such as greed and fear, which prevents investors from objectively evaluating the value and risk of investment projects.

Information asymmetry: Information in the cryptocurrency circle is updated very quickly, and there are a large number of information sources, many of which are misleading. Ordinary investors often find it difficult to distinguish between true and false, and are easily misled by false information to make wrong investment decisions.

Insufficient capital: Some investors use leverage or borrowing to invest. Although this method may magnify returns, it will also magnify losses, especially when the market fluctuates greatly, which is easy to cause a liquidation.