99% of people lose money not because of the market, but because they fail to avoid these six fatal traps!
1. Short-term thinking: Are you investing, or gambling?
In the cryptocurrency world, there are coins that rise and fall dramatically every day, but those who truly make big money are often the long-term holders who forget their passwords. Short-term trading may seem exciting, but in reality, it’s just paying transaction fees to exchanges and market makers. Ask yourself: Are you willing to hold the coin you bought for a year without touching it? If not, why continue short-term trading? The answer lies in understanding why you chose that particular asset and what strategy you plan to use. If your rationale is valid or invalid, respond appropriately with a corresponding strategy.
2. Chasing highs and cutting losses: Why do you always buy at the highs and sell at the lows?
FOMO (Fear of Missing Out) is human nature, but it can lead to various misfortunes. When a coin rises by 50%, you rush in and end up getting trapped; when it drops by 50%, you panic sell, only to see it rebound. The market is always in a cycle, while your principal keeps shrinking. True opportunities often appear when no one is paying attention.
Here’s another paradox: How many times has Bitcoin multiplied? Is it high now? Does entering now count as chasing the high?
The answer is: Do you understand the underlying logic of a particular asset? Do you see its trend? Back to the first question: What are your reasons and strategies?
3. Insufficient understanding: Are you investing, or just following the crowd and giving away money?
You buy just because someone else recommended it, and you rush in because a KOL suggested it, but do you even know what this coin is actually doing? The most expensive tuition is paying for someone else's understanding.
If you’re too lazy to even read the white paper, isn’t losing money inevitable?
If your understanding is insufficient, don’t get involved. Diversifying your investments is a protection against insufficient knowledge or ignorance.
4. Impulsive mindset: Why do you think you can become rich overnight?
The cryptocurrency world is not short of myths, but most people only see others making money, without realizing the hardships they endured. They buy a coin, and after three days of no increase, they curse, yet they are unwilling to spend three months studying it.
Wealth is the realization of understanding; impatience will only make you a target.
Warren Buffett said, the three most important words in investing are: margin of safety.
The premise of wanting to get rich is having a mature trading system. Relying on luck will lead to either getting rich or losing everything; it's just a matter of where you started and where you end up. Don’t let fantasies fuel your impatience.
5. Refusing to learn: Are you still using 2020’s thinking to trade cryptocurrencies in 2025?
Blockchain is evolving, with new concepts like DeFi+, NFT+, Layer2+, RWA+ emerging continually, yet many people don’t even understand the basic principles of Bitcoin.
Not learning is like running naked in the dark; if the market maker doesn’t cut you, who will?
Investing is always a game against the real world and the market, with your greed, laziness, and fear in a race. Your only moat is to continuously learn and combat your human nature.
In this market, you either pay the market fees or pay for knowledge and expertise to arm yourself!
6. No strategy: What is your investment logic?
Feeling that it will rise is not a strategy; just because others say it’s good does not make it a reason.
What will you do if it rises? What will you do if it falls? What is your target price? Where is your stop-loss point? Those without a plan will always be led around by the market.
Cultivating the right mindset and establishing a trading system and trading strategy are essential for your wealth.