Cryptocurrency Pitfall Guide Summary, which ones have you fallen into?
1. Impulsive FOMO
Seeing a coin you like, even though it's clearly not a buying point, you can't help but want to chase it higher. The result? You focus solely on that coin and miss out on other better opportunities.
2. Value Investment Trap
When doing value investment, you only look at the price; if it goes up, you think it's great, but when the price drops, you try to find all sorts of fundamental positives to support it. Ignoring that the price is at the end of a major cycle's upward momentum exhaustion, you end up getting deeper into a loss.
3. Emotional Breakdown After Being Stuck
You get stuck in a trade, and when emotions hit, you turn into a staunch bull, unable to hear any bearish voices. Rational judgment goes out the window, and you only want to listen to bullish analyses.
4. Refusing to Admit Mistakes
It's clear you've made a wrong judgment and should cut losses and exit, but because you only allow yourself to profit and not to take losses, you end up losing more and more, turning a short-term trade into a long-term one.
5. Past Hurts
A coin once hurt you, and you never want to touch it again. Even when a great opportunity arises, you turn a blind eye.
6. Regret of Missing Out on a Quick Sell
You see a coin that you could have sold quickly, thinking there’s still a lot of upside, and even if you chase it back, it would only increase your cost by two points. But you just won't chase it, resulting in a missed opportunity.