#TradingMistakes101 Beginners in crypto trading often make mistakes that can lead to significant losses. Here are the most common ones:
### 🚨 **Common Mistakes of Beginners**
1. **Lack of Research** – Not understanding the fundamentals of an asset beforehand
2. **Investing More Than One Can Afford to Lose** – Market volatility can lead to quick losses[ "2").
3. **Absence of a Trading Plan** – Entering the market without a clear strategy increases risks
4. **FOMO (Fear of Missing Out)** – Buying an asset solely because it is trending
5. **Poor Risk Management** – Not using stop-losses or diversification can exacerbate losses "2").
6. **Overtrading** – Making too many transactions without thorough analysis can deplete capital
7. **Blindly Following Influencers** – Copying strategies without understanding the risks