The fundamental reason why ordinary people lose money in cryptocurrency trading:
90% of ordinary investors lose money because: small positions in rising markets, large positions in falling markets.
The reason for this is a trading habit issue.
When buying a rising coin, most people do not invest a large amount, and then, due to continuous price increases, they cannot resist the temptation and keep adding to their positions. Eventually, they end up buying at the moment of a pullback, thus making profits with small positions but losing everything with large positions. Of course, there are times when they manage to buy correctly, but trading cryptocurrencies is a long-term endeavor, and this trading habit will eventually lead to significant losses.
Therefore, to avoid this habit, one must cultivate the practice of selling high and buying low, not the other way around.
First: Establish fixed positions, do not trade arbitrarily.
Second: After establishing a position, only reduce it and do not add to it.
Third: Do not build positions arbitrarily, especially when the market conditions are unclear.
Advice for ordinary investors: "Experts" pass by