Surely, when participating in this crypto market, everyone wants to earn a lot of money. Although this market brings higher profits than other financial markets such as Forex, Stocks... but it also comes with a greater level of risk.
For any market, if you do not have knowledge and the right mindset, you will forever be in a vicious circle of losses. Knowledge and experience come from mistakes, from which you can draw lessons for yourself to survive in the market. Below are common misconceptions that often appear and are often made when participating in the market.
1. Want to make money fast
It is true that the crypto market can make money quickly because of its volatility, increases of x2 x3 or even x10 in a day are possible. But what goes up quickly is followed by a quick fall, after each increase there are profit-taking waves from MM, market-wide crashes, dividing by 5 or 10 are common.
It is possible to earn money quickly and a lot, but to keep money is extremely difficult. When we earn money, we want more and faster. Human greed is bottomless and nowhere is greed more evident than in the financial market, especially the cryptocurrency market when hearing stories like: x10 times buying this crypto, x100 when buying that crypto
Being eager to make money right away will make us get dragged into the market, leading to unfortunate mistakes such as buying a crypto coin at a high price and not being able to exit in time when the crypto coin drops deeply. Placing an order is expecting it to increase immediately, every few minutes turning on the app to check if it has gone up yet.
đ Remember the only way to make money in this market is patience
2. FOMO according to the majority
The characteristic of the financial market is that it is a crowd market, but the truth is that the crowd never wins. However, new investors are often overwhelmed by crowd psychology. When they see a coin increase in price sharply, they tell each other that it is good to buy it and it will continue to increase. After seeing everyone buying and selling excitedly, they cannot stand still and start to fluctuate, leading to wrong decisions.
Be proactive in your investment decisions based on careful analysis and advice from successful people, don't buy and sell hastily.
đ Sometimes trying to stand outside the crowd and consider something will help us have a more objective view.
3. Underestimating the market, thinking that games are easy.
When entering the market, many people after a few future orders x5-x10 their account in a few days become delusional. Because gambling is unfair to newbies, when they win a lot, they start to look down on the market, thinking they are talented and then suffer the bitter consequences.
Crypto is a Zero-Sum game, in theory the total assets of the winner will be equal to the total losses of the other players. This means the money of the loser will be transferred to the winner's pocket. Nothing is easy for any type of finance. Investing to make money has many potential risks, having your own opinions is good but the reality is sometimes not as imagined. There are many lessons when we are subjective.
đ For the uptrend market, it is an easy opportunity to make money, but market fluctuations are unpredictable, the risk is very high. Remember, if making money was that easy, everyone would be rich.
4. Thinking that more analysis is better
Before placing an order, it is good to analyze a project carefully before deciding. However, many people try to analyze in a positive direction as much as possible to feel sure and secure. Sometimes something is too obvious, it is no longer a good opportunity.
What we see is what the bookmaker wants the market to see. The bookmaker will create a smokescreen with news that we find out during the process of searching for information.
đ Therefore, it is always necessary to prepare a solution for the worst case scenario.
5. Only consider crypto as a side job to earn extra money
This is an extremely harmful mindset that almost everyone who is new to the market has, because most people have a main job outside and when they hear news about crypto, they hope to spend some money to earn more. Mr. Ryan once said that the financial market is the pinnacle of intelligence. To be successful in this market, you need to be good at many things. With the mentality of considering crypto as a side job, most people when entering the market also hope to earn a lot of money, but after participating for a while, they just want to get to shore.
đ So you have to be really serious about it. It can't be considered a side job, but a main job to make money.
6. Lack of self-confidence
For new investors, when entering the financial market in general, the crypto market in particular, they are still very confused, their knowledge is still limited, they have no experience, no experience, so they lack confidence when investment opportunities come. Because the losing orders have worn down their confidence. They suffer continuous losses, they will gradually become worried and it will affect their psychology and spirit. The fear of failure will make them not want to invest anymore or worrying too much will overwhelm their spirit, making them not alert, decisive and making wrong decisions when trading, then they fail miserably.
Don't let any bad factors affect your investment process. We have all experienced that we have analyzed everything but after going online to see KOLs analyze the opposite, we are afraid and immediately trust and follow them regardless of the previous analysis. And the result is that we are right, KOLs are wrong.
đ If you want to be successful in trading, you must have faith and be sure of what you do. Before buying a crypto, you have had a long time to research, analyze and choose it, so put all your faith in your decision.
