Cryptocurrency attracts more and more people, promising quick earnings and financial freedom. However, for many beginners in the crypto market, this path turns out to be thorny due to typical mistakes that lead to loss of funds.
Such beginners, often referred to as 'hamsters' among investors, make the same blunders, stumbling on the rakes of greed, panic, and lack of knowledge. In this article, we will discuss the main mistakes to avoid in order to minimize risks and increase the chances of success.
1. FOMO (Fear of Missing Out) — the fear of missing out on profits
• They buy assets at the peak of the price when the market is already 'heated' by hype.
• They fail to exit on time, losing money on corrections.
• Advice:
• Do not succumb to emotions, conduct analysis.
• Buy assets at the lows, not when they are 'in the spotlight'.
2. Lack of strategy
• Play without a plan: buy and sell chaotically.
• They try to guess market movements instead of using proven methods
• Advice:
• Set goals: when to enter and exit.
• Decide in advance how much you are willing to lose (stop-loss).
3. Overleverage
• Use leverage without understanding its risks.
• Lose everything at the slightest market movement against their position.
• Advice:
• Do not trade with leverage until you understand the mechanics.
• Never take a loan for trading ❗️❗️
4. Disbelief in the bear market
• They think the market will always grow and do not take profits.
• Get stuck in long-term losing positions.
• Advice:
• Learn to take profits during growth.
• Always keep part of your portfolio in stablecoins.
5. Too much emotion
• Panic during market declines (sell at lows).
• Euphoria during growth (do not take profits, expecting even greater growth).
• Advice:
• Follow cold calculation, not emotions.
• Write down your plan on paper and stick to it.
6. Insufficient diversification
• Invest all funds in one project or token.
• Lose everything if the project turns out to be a scam.
• Advice:
• Diversify investments across different assets.
• Do not invest more than 5–10% in one project.
7. Belief in quick earnings
• Expect instant X2 or X10.
• Enter hype projects without studying their tokenomics or team.
• Advice:
• Remember: high returns are associated with high risks.
• Analyze the fundamental indicators of projects.
8. Neglecting security
• Keep assets on exchanges instead of in cold wallets.
• Fall for phishing sites.
• Advice:
• Use hardware wallets (Ledger, Trezor).
• Check the link twice before entering data.
9. Chasing everything at once
• Switch too often between projects, wasting time and money on fees.
• Try all trends in a row without delving into them.
• Advice:
• Focus on a few areas that you understand.
Summary:
The main enemies of hamsters are emotions, lack of knowledge, and strategy. The crypto market requires discipline, analysis, and patience. By avoiding these mistakes, one can significantly increase the chances of success!
Via “Professor Trader” $BTC