The Lesson of Losing 100,000: Pitfalls Newcomers Must Avoid

Hello everyone, today I want to share a lesson I learned from personal experience. I hope you can learn from it and avoid the detours I once took.

I remember when I first entered the cryptocurrency market, my mind was filled with dreams of getting rich quickly. At that time, my understanding of the market was almost zero, and many people told me, "Just follow the trends and buy, you can't go wrong!" So, I started investing in some seemingly popular coins. Every time I saw someone making money, I couldn't wait to jump in, thinking that as long as I followed the right "trend," I would make a fortune.

However, the outcome was painful. Because I had not done any basic research or analysis, I blindly followed the crowd, which ultimately led to losing 100,000 of my principal in just a few months. That 100,000 is not a small amount; the price I paid was extremely painful. There were several obvious "pits":

First Pit: Herd Mentality Investment

At the beginning, I was completely blindly following others. I saw which coin someone recommended and thought it would go up, so I bought it. I had not done any market analysis or considered the fundamentals and long-term value of the coin. The cryptocurrency market is full of risks, and relying solely on recommendations from others makes it difficult to achieve stable profits.

Second Pit: Ignoring Stop Losses

Sometimes, the volatility of the cryptocurrency market is unbearable. I also made the mistake of not stopping my losses in time. Even when the market trend was clearly wrong, I still stubbornly held onto the losing coins, unwilling to cut my losses. This "gambler's mentality" caused my losses to grow larger and ultimately led to huge losses.

Third Pit: Overconfidence

At that time, I believed I could make money through "technical analysis" and "market intuition," thinking I was smarter than others. However, that confidence often arose without fully understanding the market. The result was not only missing profit opportunities but also getting stuck in a quagmire of losses.

From these experiences, I learned a profound lesson: Before entering the cryptocurrency market, it is essential to conduct thorough market research, avoid blindly following trends, and not let short-term fluctuations cloud your judgment. A stop-loss mechanism is a must, investments must be rational, and one cannot rely on luck. Only in this way can one navigate the cryptocurrency market more steadily and earn more sustainably.