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

Impulsive Trading: Investors engage in trading under emotional fluctuations, such as rushing to buy when they see a coin skyrocketing or believing in 'insider information' and 'KOL recommendations' from communities without conducting independent research and judgment. This impulsive behavior often leads to buying or selling at the wrong times, increasing the risk of losses.