Insufficient understanding of the market: Entering the market for trading blindly without understanding the basic principles, trading rules, market trends, etc. of the cryptocurrency market can easily lead to poor decision-making.

• Lack of trading strategy: Not having a clear trading plan and strategy, including when to buy, sell, stop loss, take profit, etc., leads to arbitrary trading behavior that can easily be influenced by market sentiment.

Improper emotional management

• Greed: In trading, when the price of cryptocurrency rises, investors may fail to take profits in a timely manner due to greed, hoping for further price increases, which may ultimately cause them to miss the best selling opportunity, leading to profit erosion or even losses.

• Fear: When market prices fall, investors may hastily stop losses out of fear or may not dare to buy at low prices, missing out on rebound opportunities.