Failure of new coin investors can include the following basic factors:
Lack of market knowledge:
Many new investors enter the cryptocurrency market without adequate knowledge of market fundamentals, but still hope to make a quick profit. This can lead to investment decisions that are not carefully considered, and when the market fluctuates, they will easily lose money.
Abuse of leverage:
Some new investors may use too much leverage when trading cryptocurrencies, especially when trading on margin, to increase profits. However, using high leverage also means high risk, and if the coin price does not move in the desired direction, they can suffer heavy losses.
Lack of trading discipline:
Some new investors tend to make trading decisions based on emotions rather than on technical or fundamental analysis. This can lead to ill-considered decisions and failure.
Choosing the wrong coin to invest:
Some new investors do not have enough knowledge to analyze and select potential coins. They may invest in unpromising or high-risk coins, and when coin prices fall, they may lose money.
Greed or fear mentality:
Some new investors may be influenced by greed or fear when trading cryptocurrencies. They may invest too much or sell too soon simply because they are afraid of losing money or want to make a lot of money quickly. This can lead to decisions that are not carefully considered.
