FOMO chasing highs during the explosive rise and panic selling during the sharp decline often leads to buying at the top and selling at the bottom. The crypto market is highly volatile, and emotional trading is a major cause of losses.

**Misconception 2: Over-reliance on technical indicators**

Rigidly applying traditional stock market KDJ/MACD indicators while neglecting the unique characteristics of the 24/7 trading and high volatility of the crypto market results in distorted signals.

**Misconception 3: Putting all funds into a single coin**

Betting all funds on a so-called 'hundredfold coin' while ignoring risk management. In reality, 90% of altcoins end up at zero; diversifying investments allows for longer survival.

**Misconception 4: Ignoring on-chain data**

Only looking at candlestick charts without checking on-chain data misses key signals like whale movements and inflows/outflows from exchanges, making it impossible to gauge the true market trend.