Why do most people fail to make money in the crypto space?
Core reason: Emotional interference. The high volatility in the crypto space amplifies fear (FOMO) and greed, leading to chasing highs and selling lows, frequent trading, or panic selling.
How emotions destroy investments:
Human weaknesses: Ordinary people are easily influenced by market emotions, buying at highs and selling at lows, which goes against market principles.
Challenges of dollar-cost averaging: What seems like a simple strategy requires long-term commitment, enduring temporary losses, going against human nature and being 'slow'. Many people give up or distort their operations (e.g., buying high and selling low) due to emotions.
Common traits of those who make money: Excluding emotional interference.
Dollar-cost averagers: Regularly buy Bitcoin, hold long-term (2+ cycles), and ignore short-term fluctuations.
Traders: Have clear plans, strictly set take-profit and stop-loss levels, and do not chase highs or bottom-fish.
Contract players: Maintain fixed positions, calmly adjust strategies, and do not hold onto losing trades or increase leverage.
Fur pullers/KOLs: Execute consistently, unaffected by short-term gains or losses or moral pressures.
Why most people fail: Lack of discipline, trading based on emotions. Pursuing quick money, unable to endure long-term losses. Misled by noise in the crypto space (hype, rumors). Lack of experience due to not having gone through a complete market cycle.
How to make money:
Dollar-cost averaging in Bitcoin: Simple and effective, hold long-term (8-12 years), requires patience.
Strict rules: Set take-profit and stop-loss levels in trading or contracts, and execute mechanically.
Emotional management: Maintain rationality through journaling and meditation.
Learning cycle: Learn from experienced traders, understand bull and bear market patterns.
Data support: Long-term holding of Bitcoin (4+ years) results in almost all profits; for example, buying at the 2017 peak still yields profits today. About 70%-80% of retail investors lose money due to emotional trading.
Summary: The key to making money in the crypto space is to exclude emotions and follow discipline. Dollar-cost averaging is the best strategy for ordinary people, but it requires restraint against human impulses and a commitment to long-term rational investment.
Core reason: Emotional interference. The high volatility in the crypto space amplifies fear (FOMO) and greed, leading to chasing highs and selling lows, frequent trading, or panic selling.
How emotions destroy investments:
Human weaknesses: Ordinary people are easily influenced by market emotions, buying at highs and selling at lows, which goes against market principles.
Challenges of dollar-cost averaging: What seems like a simple strategy requires long-term commitment, enduring temporary losses, going against human nature and being 'slow'. Many people give up or distort their operations (e.g., buying high and selling low) due to emotions.
Common traits of those who make money: Excluding emotional interference.
Dollar-cost averagers: Regularly buy Bitcoin, hold long-term (2+ cycles), and ignore short-term fluctuations.
Traders: Have clear plans, strictly set take-profit and stop-loss levels, and do not chase highs or bottom-fish.
Contract players: Maintain fixed positions, calmly adjust strategies, and do not hold onto losing trades or increase leverage.
Fur pullers/KOLs: Execute consistently, unaffected by short-term gains or losses or moral pressures.
Why most people fail: Lack of discipline, trading based on emotions. Pursuing quick money, unable to endure long-term losses. Misled by noise in the crypto space (hype, rumors). Lack of experience due to not having gone through a complete market cycle.
How to make money:
Dollar-cost averaging in Bitcoin: Simple and effective, hold long-term (8-12 years), requires patience.
Strict rules: Set take-profit and stop-loss levels in trading or contracts, and execute mechanically.
Emotional management: Maintain rationality through journaling and meditation.
Learning cycle: Learn from experienced traders, understand bull and bear market patterns.
Data support: Long-term holding of Bitcoin (4+ years) results in almost all profits; for example, buying at the 2017 peak still yields profits today. About 70%-80% of retail investors lose money due to emotional trading.
Summary: The key to making money in the crypto space is to exclude emotions and follow discipline. Dollar-cost averaging is the best strategy for ordinary people, but it requires restraint against human impulses and a commitment to long-term rational investment.
Disclaimer: Includes third-party opinions. No financial advice. May include sponsored content. See T&Cs.
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