1.FOMO (Fear of Missing Out)
- Jumping into coins without research just because they're trending can lead to poor investment choices. Not every pump is sustainable.
- Avoid chasing after coins that have already skyrocketed. You might be buying at the peak.
2.Over-Leveraging
- Using excessive leverage in trading can amplify losses just as much as it can amplify gains.
- Crypto markets are highly volatile, and liquidation can happen quickly.
3.Ignoring Risk Management
- Invest only what you can afford to lose.
- Set stop losses and diversify your portfolio to mitigate risk.
4.Lack of Research (DYOR)
- Blindly following influencers or hype can lead to scams or rug pulls.
- Always research the project's fundamentals, team, tokenomics, and real-world use cases.
5.Holding Too Long ("Diamond Hands")
- While holding can be beneficial, greed often leads people to miss the peak.
- Set clear profit targets and stick to them.
6.Neglecting Exit Strategies
- Without a clear plan to take profits, you might end up riding the market back down.
- Reinvest profits in stable assets or diversify into other sectors.
7.Ignoring Security
- Don’t leave funds on exchanges for too long. Use secure wallets (hardware wallets are best).
- Be cautious of phishing attacks, fake apps, or too-good-to-be-true offers.
8.Underestimating Tax Implications
- Profits from crypto trading are often taxable. Not preparing for this can lead to financial issues later.
- Keep records of all trades and consult a tax professional.
9.Investing Emotionally
-Fear and greed are the biggest enemies in a bull run. Stick to a strategy and avoid impulsive decisions.
- Avoid panic selling during minor dips.
10.Focusing Only on Short-Term Gains
While the bull run is exciting, consider long-term potential and utility.
- Don’t forget the bear market will come; invest in projects that can survive downturns.
Key Takeaway
Discipline, patience, and preparation are vital during a bull run. Stick to your plan, avoid greed, and always prioritize protecting your capital over chasing massive gains.