The fundamental reason for most losses is: having a small position when the coin price rises, but a larger position when the coin price falls sharply.

The root problem in this situation is actually poor trading habits.

Typically, when buying a rising coin, the initial position will not be too large, but as the coin price continues to rise, many people cannot help but increase their positions, ultimately resulting in the largest position when the price corrects. As a result, the initial profits may be lost during the correction. Although it is occasionally possible to correctly average down, trading cryptocurrencies is a long-term process, and such trading habits will ultimately lead to significant losses.

To avoid this situation, the most important thing is to cultivate the habit of "selling high and buying low" instead of chasing prices up and down.