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Why do people still fail to make money despite the high short-term gains of altcoins, which can easily increase several times? The main reasons are as follows:

Too many people now expect altcoins to achieve 5 times, 10 times, or even higher. Therefore, even if it increases by 3 times, you still feel it’s too little and not yet at your psychological price; as a result, you hold on without selling, and it begins to decline, with profits dropping from 300% to less than 100%;

You remain confident and wait for a rebound, and after a long wait, it finally rebounds and your profits reach 280% again. You believe that waiting was worth it;

Since you didn’t give up during the low point and have persisted for so long, you think it’s finally going to explode. As long as it breaks the previous high, achieving 5-10 times profit will be easy; you firmly hold on and do not sell;

Suddenly, there’s a small correction. You believe this is a technical correction before the rise, and since it has rebounded for so many days, a technical correction is very normal; plus, it hasn’t broken the previous high, so you’re not worried about a major drop;

Sure enough, the next day it rebounds a bit more. Just when you think (as expected), it drops a little again. You think it’s a trap, and sure enough, it rebounds a bit more, followed by a big drop, reducing your profits to 200%. After a week of gradual small declines, your profits drop from 200% to 100%;

You think that it has only dropped a little after so many consecutive days of decline; it has been correcting for so many days, it should rise now; unfortunately, a waterfall decline comes, and your profits gradually decrease from 100% to 50%. You are unwilling to accept this, trying to bottom fish at the lows, and then your profits gradually drop to -50%, and you are completely trapped;

This is why, despite the large profit potential of altcoins, most people fail to make money even when they can increase several times in the short term.

However, if you look at altcoins from a different perspective, treating them like Bitcoin, and don’t set your expectations too high, with a goal of just doubling your profit,

It’s very possible to achieve a double profit in a month, while holding Bitcoin might take years to achieve a double profit;

The risk of spending 1 month to bet on a double profit is certainly much less than spending several years to bet on a double profit. From this perspective, altcoins seem more stable.