Six Fatal Traps of Losing Money in the Crypto World
99% of people who lose money in crypto cannot escape these six spells
How many have you fallen into?
1. Short-Term Thinking: Are you investing or gambling?
The crypto market has daily surges and crashes, but those who make big money are often long-term holders who forget their passwords. Short-term trading seems exciting, but in reality, it just means paying fees to exchanges and market makers.
Ask yourself: Are you willing to hold the coin you bought for a year without moving it?
2. FOMO (Fear of Missing Out): Why do you always buy at high points and sell at low points?
FOMO is human nature, but the crypto world specializes in curing such tendencies. A coin rises by 50%, you rush in, and end up trapped; it drops by 50%, you panic sell, and then it rebounds. The market is always in a cycle, while your principal keeps shrinking. Real opportunities often appear when no one is paying attention.
3. Lack of Understanding: Are you investing, or just following the crowd and giving money away?
You buy when others shout, and rush in when KOLs recommend, but do you really understand what this coin is about? The most expensive tuition in crypto is paying for others' understanding. If you can't even be bothered to read the white paper, isn't losing money inevitable?
4. Impulsive Mindset: Why do you think you can get rich overnight?
The crypto world is not short of myths, but most people only see others making money without realizing the bear markets those people endured. You buy a coin, and if it doesn't rise in three days, you curse, but you won't spend three months studying it. Wealth is the realization of understanding; impatience will only make you a victim.
5. Refusal to Learn: Are you still using 2020's mindset to trade 2024's coins?
Blockchain is evolving—DeFi, NFT, Layer 2, RWA... new concepts keep emerging, yet many people can't even grasp the basic principles of Bitcoin. Not learning is like running naked in the dark; if the market makers don’t cut you, who will?
6. No Strategy: What is your investment logic?
Feeling it will rise is not a strategy; just because others say it’s good doesn’t make it a reason. What will you do if it rises? What if it falls? What is your target price? Where is your stop-loss? Those without a plan will always be led by the market.