In the cryptocurrency world, adjusting and controlling one's mentality is crucial for investors. Here are some key mentalities and psychological phenomena, and how to deal with them:

1. Cognitive biases and psychological misunderstandings:

• Confirmation bias: Investors tend to focus only on information that supports their own views and ignore evidence that contradicts expectations. This can lead to being caught off guard when the market reverses and making wrong decisions.

Regardless of how the transaction is, it is important to have a normal mentality and calmly deal with every wave of the market so that you can truly let nature take its course and accumulate and become stronger.

• Loss aversion: People's pain from losses is far greater than the joy of getting the same gains, which may lead to hesitation when losing money, refusal to execute stop losses, and ultimately greater losses[^1^].

• Overreaction: Market fluctuations may trigger traders' fear, greed, anxiety and other emotions, leading to deviations from the original trading plan and frequent opening or closing of positions[^2^].

2. Emotion-driven trading behavior:

• Greed and FOMO (fear of missing out): The high volatility of the cryptocurrency market often causes traders to fall into a greedy mentality, especially when the market is rising, when traders may worry about missing out on potential profit opportunities. This sentiment can lead to overtrading as traders rush to take advantage of every upside opportunity without in-depth analysis and neglect risk management[^3^].