Five common mistakes that can make you lose money when trading cryptocurrencies!
Altcoins are always full of temptations and risks. When prices soar, many investors are prone to emotional decisions, which lead to losses.
1. Not setting clear profit targets When the market is rising, it is easy to indulge in the fantasy of "going up a little more" and eventually lose the realized gains when the market reverses. Turn profitable orders into losing money! (Leave when you make money, no pattern!) How to avoid: Set clear profit targets for each investment. Gradually stop profits in stages to lock in profits into real funds.
2. Follow the hype without a plan! The appeal of hot projects is irresistible, but chasing high prices often leads to losses when the heat subsides.
Like to chase highs and hot spots! (Chasing highs will die)
How to avoid: Avoid impulsive trading driven by FOMO (fear of missing out).
3. Ignoring risk management Investors in a bull market tend to be overconfident, invest in full positions or leverage, or even hold a single high-risk asset, which may lead to devastating losses. (It hurts to cut meat, but it is not fatal!)
How to avoid: diversify your investment portfolio and transfer part of your funds to low-risk assets such as stablecoins. Set a stop loss to reduce the potential risk of a single investment.
4. Overconfidence leads to increased risk
When the market is rising overall, investors tend to mistakenly think that they have mastered the market rules and take greater risks. (Respect the market)
How to avoid: Stay humble and respect the uncertainty of the market. Always control your position to avoid exposing too much risk due to overconfidence.
5. Chasing impossible 100x returns
Looking for the next "100x coin" often falls into the trap of speculating on inferior projects and ultimately loses the principal.
How to avoid: Invest in high-quality projects with strong fundamentals and real use cases. Remember, most huge returns come from holding high-quality assets for a long time. For example, BTC and BNB
