Here are the 10 crypto trading mistakes that can drain your profits:
1. *Over-Leveraging*: Using high leverage can lead to liquidation; stick to 2x-5x and use tight stop-losses.
2. *Emotional Trading*: Avoid trading based on fear or greed; follow a plan instead.
3. *Ignoring Security*: Protect yourself from scams and phishing by using hardware wallets and 2FA.
4. *Skipping Research*: Study tokenomics, project use cases, and team credibility before investing.
5. *Chasing Losses*: Avoid over-trading or doubling down to recoup losses; take breaks and regain clarity.
6. *Lack of Strategy*: Trade with a plan, using technical setups like breakouts or swing trades.
7. *FOMO Entries*: Wait for pullbacks or clear entries instead of buying into hype.
8. *Neglecting Risk Management*: Risk only 1-3% of your capital per trade to avoid significant losses.
9. *Ignoring Market Cycles*: Understand the crypto cycle to make informed investment decisions.
10. *Overtrading*: Prioritize quality over quantity; trade less, but smarter.
By avoiding these common mistakes, you can improve your trading strategy and protect your profits.
