About 90% of crypto traders lose money for several key reasons:
1. Lack of Knowledge and Experience
Most new traders jump in without fully understanding how markets work—especially the volatile and fast-moving crypto market.
2. Emotional Trading
Fear and greed drive impulsive decisions—buying high in FOMO (Fear of Missing Out) and selling low in panic.
3. Overleveraging
Many use leverage (borrowing to trade bigger positions), which can lead to fast liquidations if the market moves against them.
4. Poor Risk Management
Beginners often risk too much on a single trade or don’t use stop-losses, which exposes them to huge losses.
5. Lack of Strategy
Trading without a clear plan, or constantly switching strategies, leads to inconsistency and losses.
6. Market Manipulation
Crypto markets are still relatively unregulated, making them prone to manipulation by whales or large holders.
Would you like a breakdown of how to avoid these traps or how pro traders actually stay profitable?