Why are retail investors trapped?

• Severe chasing mentality

Retail investors often hold a "get rich quick" mentality, blindly believing that a cryptocurrency will continue to rise after seeing consecutive price increases, leading them to chase prices at high levels. As a result, the main players reverse and sell, trapping them instantly.

• Lack of risk management

Retail investors generally lack awareness of stop-loss strategies. When prices adjust, they hold on to hope for a rebound to break even, but instead, they become deeply trapped as prices continue to fall.

• Lag in information

Retail investors acquire market information at a much slower speed and lower quality compared to institutions. When major funds begin to withdraw, retail investors are often still immersed in past rising sentiments, and by the time they notice something unusual, it is already too late.