1. FOMO – Buying with the crowd without thorough research.
• FOMO (Fear Of Missing Out) is the state of investors fearing they will miss out on opportunities when they see a coin's price rising sharply and deciding to buy without analysis.
• The reality: Sudden price increases often come with strong correction risks. When you jump in at high prices, you are likely buying at the 'peak' and may suffer losses when the price drops.
👉 Ways to avoid FOMO:
• Stay calm and don't make decisions based on emotions.
• Analyze the project, review the charts, identify reasonable buying zones instead of following the crowd.
• Remember that opportunities are always there, don't rush.
2. Not setting stop-loss – Losing control when the market drops.
• A stop-loss is an automatic loss-cutting order when the price drops to a certain level. Many people often overlook or forget to set stop-losses because they believe the price will 'recover'. As a result, they suffer even heavier losses when the price continues to drop.
• The crypto market is highly volatile; without a risk management plan, you can easily 'blow your account'.
👉 Solutions:
• Always set a stop-loss as soon as you enter a trade to protect your capital.
• Calculate the level of loss you can accept (usually 1-5% of total capital) and stick to the discipline of cutting losses.
• Use flexible stop-losses according to market trends to avoid being 'liquidated'.
3. Going all-in on one coin – Putting everything into one risk.
• A major mistake new investors make is going 'all-in' with all their capital into one coin thinking it will 'x10, x20'. In reality, if you predict wrong, you could lose everything.
• The crypto market is extremely unpredictable; even good projects have risks (hacking, liquidation, or bad news).
👉 Solutions:
• Diversify your portfolio: Allocate capital into multiple coins with different potentials to reduce risk.
• Never go all-in; only allocate a small portion of your capital (5-10%) to high-risk coins with great potential.
• Keep a portion of reserve capital to take advantage of opportunities when prices drop significantly.
Conclusion: Investing in crypto can yield high returns but comes with high risks. Remember:
1. Don't let emotions dictate your actions – avoid FOMO.
2. Always manage risk by setting stop-losses.
3. Allocate capital wisely; do not go all-in on a single coin.
Invest smartly and with discipline to avoid losing money unnecessarily! 🔥
If you make a mistake, fix it; if you fail, try again. What is there to be afraid of? ❤️🔥
