Did you know? A recent analysis revealed a shocking fact: most beginner investors experience significant losses in their first year in the crypto world. The cool term is: boncos!
Watching the green chart soar is exciting, but seeing the red portfolio feels like being stung by a bee. It hurts, but there's no honey.
As a beginner investor, it's natural to feel confused about finding the right crypto investment strategy. But don't worry! This article will thoroughly uncover the fatal mistakes that often occur and how to avoid crypto losses so that your investment journey is smoother.
Fatal Error & Its Solution So You Don't Lose Money
Here are some "batman traps" that often cause beginners to lose money, based on data and the experiences of many traders.
1. Falling for FOMO (Fear Of Missing Out) or Following the Hype
Mistake: Seeing a coin like $DOGE or other meme coins rise 500% overnight, you panic and put all your money at the peak. The hope is to get rich quick, but you end up being "exit liquidity" or a place for others to sell.
Solution: Take a deep breath, calm yourself. Before buying, do your own research (DYOR). Coins with strong fundamentals like $BTC or $ETH won't skyrocket thousands of percent overnight, but they have a clearer foundation for the long term. Don't chase a train that's already left the station.
2. Lazy Research, Too Trusting of "Influencer Words"
Mistake: "According to influencer A, coin X will go to the moon! Let's buy it now!" Without realizing it, that influencer might be paid to promote that coin. You don't know what the project is, who is behind it, and what its purpose is.
Solution: Treat recommendations from outside as initial information, not a final decision. Read the whitepaper, check the community, and understand the technology behind it. Does this coin have a clear purpose like Solana (SOL) with its fast ecosystem, or is it just a meme? Remember, your money, your responsibility.
3. Investing Without Brakes (Not Using Stop-Loss)
Mistake: You bought a coin and its price keeps falling. You keep hoping the price will rebound, but in reality, it keeps plummeting. You don't have a plan for when to exit to limit your losses.
Solution: Be disciplined with stop-loss! This is extremely fatal. Investing without stop-loss is like riding a motorcycle without brakes! Set your loss tolerance limit before buying. For example, if the price drops 10% from your purchase price, sell automatically. This will protect you from deeper losses and secure your remaining capital.
4. Putting All Your Eggs in One Basket (All-In)
Mistake: You are very confident in one coin project, then put 100% of your assets there. This is a very dangerous bet.
Real Case Example: Remember the Terra Luna Classic (LUNC) tragedy? A coin that used to be in the Top 10 collapsed by 99% of its value in just a few days. Imagine if all your assets were there. Scary, right?
Solution: Diversification is key. Spread your investments across several assets. Maybe the largest portion in more stable assets like BTC and ETH, a small part in more promising altcoins, and if you like risk, a very small portion in more speculative coins. If one coin crashes, your portfolio won't be completely destroyed.
Conclusion: Loss is Bitter, Learning is Free!
The crypto world is indeed full of volatility, but also full of opportunities. Experiencing losses or boncos is part of the learning curve for almost all investors. The most important thing is not to give up and keep learning from every mistake.
If you've ever experienced boncos because of one of the mistakes above, don't be embarrassedāshare your experience in the comments! Your experience could be a valuable lesson for others.
Don't forget to like & follow my page for more anti-loss tips! Consider this as a starting step to learn crypto for free and become a smarter investor. See you at the top!
