Chasing Up and Selling Down: This is one of the most common mistakes made by cryptocurrency investors. When the price of a coin rises rapidly, investors are easily driven by greed to buy in at high levels; while when the price plummets, they sell off at the bottom out of fear. This counterproductive behavior goes against the principles of rational investing, resulting in investors buying high and selling low, leading to heavy losses. For example, during the "312 Crash" in March 2020, many investors sold off their Bitcoin holdings when the price was over $4,000, only to see the price multiply several times in the following months.

Impulsive Trading: Investors make trades based on emotional fluctuations, such as rushing to buy when they see a coin skyrocketing, or believing in “insider information” or “KOL recommendations” from the community without conducting independent research and judgment. This impulsive behavior often leads to buying or selling at the wrong time, increasing the risk of losses.