What is the root cause of losses in cryptocurrency trading?
Let me give you an example so you can understand.
Your assets are 1 million, and you use 700,000 to buy a currency.
The next day, the coin fell by 1%, and you lost 7,000 yuan. It doesn’t matter to you, because it will go back up sooner or later anyway.
On the third day it fell another 3%, and you lost almost 20,000 yuan again. You have nothing to fear because it will go back up sooner or later.

On the fourth day it went up by 2%, and you got back almost 10,000 yuan of your capital. You smiled, knowing everything was under control.
On the fifth day, it suddenly plummeted by 20%, and you lost 140,000 yuan. You feel a little nervous and start to fantasize that it will rebound tomorrow.
On the sixth day, it rebounded by 5%. You breathed a sigh of relief, thinking that there was still a way to go in cryptocurrency trading.
On the seventh day, it goes up 1% and you start to look forward to it.
On the eighth day, it rose another 1%. Although you think the increase is very slow, at least there is hope of making a profit, so you will be content.
On the ninth day, it suddenly plummeted by 30%. You started to panic and wondered if you had chosen the wrong coin.
On the tenth day, it drops another 10% and you start to get angry.
On the eleventh day, the price of the currency no longer fluctuates greatly and starts to move sideways. You see some people online saying that this is a bottoming signal, indicating that the market is accumulating momentum, and you firmly believe that it is about to rebound.
but…
In the following week, the price of the currency continued to move sideways. You went online to learn some knowledge about cryptocurrency, and based on your own understanding, you believed that this was the legendary "main force accumulation stage"!
You continue to hold your coins...
A month later, the price of the currency not only did not rise, but continued to fall by 20%. You began to feel numb, thinking that if you could get your money back, you would withdraw the money and never touch cryptocurrency again...
But contrary to your wishes, your coin is still falling. At this time, you finally learned a new concept - stop loss!
You feel very painful and are struggling internally, not knowing whether to sell your stocks or continue to hold them...
Just then, a good friend of yours tells you that a new coin has skyrocketed by 200% recently, and shares his "leading strategy" with you!
You believed it! You actually believed it!
So you sold your coins, and told yourself that you would come back to cover your position after you made money on the new coins, and then hold on to them for a long time until you get your money back!
So do you know where the root cause of losses in cryptocurrency trading lies?

The trend of the cryptocurrency market is full of uncertainties and challenges, but it also contains potential opportunities. When investing in the cryptocurrency market, investors should fully understand the relevant risks, remain calm and rational, and respond to market changes with a steady strategy!

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