#TradingMistakes101 Crypto trading can offer significant rewards, but it’s also fraught with risk, especially for beginners. One common mistake is lack of research—many traders buy into hype without understanding the technology or project behind a coin. Overtrading is another pitfall, where frequent trades lead to losses due to fees and emotional decision-making.

Ignoring risk management is also dangerous; failing to set stop-loss orders or investing more than one can afford to lose often results in major setbacks. Traders also fall for FOMO (fear of missing out), buying at peak prices only to suffer losses during corrections. Using excessive leverage can amplify losses quickly, especially in volatile markets.

Finally, poor security practices, such as storing funds on exchanges or falling for phishing scams, can lead to theft. Successful crypto trading requires patience, discipline, and continuous learning.