Why are 95% of cryptocurrency players losing money?
First, a player with many years of cryptocurrency investment experience and who has achieved financial freedom pointed out that although cryptocurrency provides a seemingly clear path to wealth - that is, through long-term holding (hoarding) and proper position management (half-position operation), there are very few people who can truly achieve financial freedom through this, about only one in a thousand.
The reason is that although mainstream cryptocurrencies such as Bitcoin have not disappointed anyone, investors often face various temptations and traps on the road to success. These traps include but are not limited to:
Full position operation: Many investors tend to put all their funds into the market without leaving any room. This practice is extremely dangerous when the market fluctuates and can easily lead to huge losses.
Use leverage, futures and contracts: These high-risk trading tools may bring high returns, but they are also accompanied by huge risks. Once the market moves in the opposite direction of expectations, investors may face huge losses.
Chasing up and selling down: Many investors are eager to enter the market when the market is rising, and eager to sell when the market is falling. This short-sighted behavior often causes them to miss real investment opportunities.
Mentality issues: Even if investors make substantial profits, if they are not satisfied and know when to leave, they may panic when the market plummets or soars, and make wrong decisions.
Interference from the outside world: The remarks of public figures such as Musk, and legends of getting rich quickly, etc. may cause investors to deviate from their original investment strategies.
Investing in junk coins: Investors may invest in some low-quality cryptocurrencies (junk coins) in pursuit of high returns, which often carry huge risks.
Security issues: Security incidents such as being deceived, being hacked, being hacked by exchanges, having their accounts frozen, and losing private keys may cause investors to suffer losses.
Therefore, although the cryptocurrency market provides investors with a seemingly simple and clear path to wealth, there are very few investors who can truly stick to principles, avoid traps, and ultimately achieve wealth freedom.
