1. Likes frequent operations
In a bull market, many people lose money due to frequent operations.
For example, if a certain altcoin rises by 100%, you sell and feel like you made a profit, but in fact, it was brought about by the overall market movement.
Then, you see it continue to rise by 100%, can't help but chase the rise, and as a result, the market suddenly crashes, and your mindset collapses, leading to losses when you sell.
Warren Buffett once said: "Wall Street makes money through constant trading, while you make money by staying still like a mountain." This statement makes a lot of sense.
Bitcoin rose from $1,000 to $70,000, experiencing countless ups and downs in between.
Some people earn money through cycles, some earn from medium-term fluctuations, but there are also those who make money by staying still like a mountain.
In a bull market, hold onto your coins; do not sell easily because the real big market has not yet come.
2. Only buying altcoins, not buying mainstream coins
Many newcomers only buy altcoins because they think the prices of mainstream coins are too high and hope to achieve higher returns through altcoins.
But many people only see the profits and do not see the risks.
I have always suggested having a large position in mainstream coins because, at critical moments, mainstream coins can help stabilize our mindset.
For instance, in this round of the ETF bull market, Bitcoin hasn't dropped much, but many altcoins have dropped severely, with some even halving. If you only hold altcoins, your mindset is already collapsing.
We often say high risk leads to high returns, but this statement is often misunderstood. Many people think that taking high risks will definitely yield high returns.
But in reality, high returns are low probability events. While pursuing high returns, you must also be prepared to face high losses.
In the crypto world, investment opportunities are always abundant; the most important thing is to survive.
3. Short-termism
Many newcomers only focus on short-term trends, attracted by the surge. But this is when the risk is highest, and this is also the first tuition fee many newcomers pay when entering the crypto world.
If your capital is small, you should not rush and definitely not gamble. The more anxious you are, the harder it is to make money; wealth does not enter through the anxious door. If you choose to gamble, you might end up with zero funds.
Buffett said: "Uncertainty is the friend of long-term value investors."
When the market is filled with uncertainty, choosing quality investment targets and holding them long-term, becoming a friend of time, and going with the trend, you will likely make money.
4. Likes to operate in reverse
Some people like to operate in reverse, without a deep understanding of the project, not knowing why the price will drop.
Just seeing the price drop a lot, you buy in, wanting to bet on a rebound, but end up getting stuck.
Buffett said: "Be fearful when others are greedy, and be greedy when others are fearful."
This statement is correct, but the premise is that you need in-depth analysis, ensuring the safety of the principal, and having reasonable expectations for returns.
So, when bottom fishing, do not blindly enter just because the price has dropped. You need to understand the fundamentals of the project, do your homework, and seize opportunities better.
5. Likes to leverage
Some people like to increase profits by leveraging through contracts, but this is actually very dangerous.
Even with low leverage, a 50% market drop is still possible. Especially in the altcoin market, leveraging requires extra caution; sharp drops and leverage in the crypto world are not new.
6. No trading plan
Whether short-term or long-term, you must have a clear trading plan and strictly implement it.
Many people have plans but find it difficult to execute because they cannot overcome greed and fear.
The simplest method is to formulate a trading plan, set target prices, pre-place buy and sell orders, and avoid giving yourself chances to regret and hesitate.
Then, you can go do your own things because trading cryptocurrencies is not everything in life. Reduce operations, read more books, or go exercise.
It’s best to write your trading plan down; no matter whether you lose or make money, you should record it, which will help you summarize and review your experience later.
7. Randomly investing in unfamiliar fields
Many people throw money into fields they are not familiar with.
Warren Buffett has said: "The important thing is to know what you know and to know what you don't know." This statement is very meaningful.
If you don't understand a certain field, don't invest lightly. Understanding your circle of competence is a long and important process, and there are no quick tricks.
Remember, you can never earn money beyond your cognitive range; blind investment will only lead to total loss.
8. Borrowing money to trade cryptocurrencies
Some people like to borrow money to trade cryptocurrencies, especially those without a fixed income, which makes their mindset very unstable.
When you invest with borrowed money, any losses will be magnified because you have to face not only market risks but also the pressure of repayment.
In this case, the mindset can easily collapse, which will also distort your operations.
9. Randomly exposing your assets and earnings
Some people like to show off their earnings and asset charts; unless you have a special purpose, doing so will only attract jealousy and trouble. It's better to be low-key.
Also, do not flaunt your luxurious life on social media; apart from close relatives, few people genuinely want you to do better than them. Excessive boasting will only attract unnecessary jealousy and trouble.
10. Likes to curse at people
Some people like to curse at others randomly, but in fact, doing so doesn't benefit themselves.
"The use of propriety is valued in harmony; getting angry will only affect your financial luck."
When encountering those who drain your energy, the best way is to stay away directly, no need to say much.