Many friends, after losing money in cryptocurrency investment, find themselves in two states:
First, it is an irresponsible attitude towards money; after losing money, one comforts oneself by believing that wealth is not important and that it's just bad luck.
Instead, he treated such a professional matter as investment completely relying on luck, lacking a true understanding and respect for money.
Second, after losing money, they never consider why they lost money, and they do not summarize the reasons for their losses, thus continuing to make the same mistakes.
They continue to run hard down the wrong path, moving further away from the right goal.
So actually losing money is not the worst part; the worst part is not knowing how you lost money! Because you cannot avoid the reasons for losing money.
If so, they will continue to lose money. Do you agree?
There are 11 reasons for losing money in cryptocurrency investment. I wonder how many of these you have experienced?
1. Blindly choosing investment targets
2. Entering the market based on random news
3. Sticking to a single coin for dollar-cost averaging
4. Trading Contracts
5. Frequent Trading
6. Chasing up and selling down
7. Not understanding how to cash out after making a profit
8. Gambler's mentality in increasing positions
9. Borrowing to invest
10. Issues in Capital Management
11. Wanting to take three thousand scoops from a river instead of just one.
Today, let's discuss how we can avoid the reasons for losing money mentioned above.
In the cryptocurrency market, the first challenge we face is how to choose valuable investment targets among thousands of options in exchanges.
What about you?
I believe many novices or small investors blindly choose their investment targets. Some even just pick coins based on how nice the English letters look.
Either influenced by a community with a great atmosphere or by a certain influencer claiming that a coin will have great potential in some sectors.
They impulsively go all in without thinking; there are also some novices who stubbornly pin their hopes on a single target.
They stubbornly cling to a single target. Because they did not escape when a bull market peaked, they got stuck, and out of anger and defiance against the market, they go against the trend.
As the market fell, he kept adding positions, and after a whole bear market, he ran out of resources, thus deeply educated by the market, understanding that the market punishes various mistakes.
They are not satisfied. Sometimes they encounter coins they have painstakingly held for years being delisted because exchanges list many new coins every day.
Some worthless old coins will be delisted.
So points 1, 2, and 3 are all due to a lack of correct understanding of investment targets. First, we should avoid choosing coins that are just hot concepts during their speculative period.
Instead, they should choose coins that are in the stage of value recovery.
Many coins have not yet seen real applications when they get listed on exchanges during their speculative phase; their essence is to serve as a bailout for the primary market.
In the early stages of a bull market, the probability might be higher, but often at the end of a bull market, the peak is reached quickly, followed by a decline.
Many friends do not understand what the coins they invest in are for, and just jump in impulsively after hearing news. They also do not analyze the current situation through technical analysis.
They chase prices in whatever stage, ultimately becoming a victim of the market, which is actually a gambling mindset.