After spending a long time in the crypto world, you will inevitably step into various pits, whether you're a newbie or an experienced player; these pitfalls are simply a rite of passage. Today, let's talk about the places where 90% of people have stumbled and see if you've stepped in them too? Don't be afraid; recognizing the problem can help you avoid pitfalls and turn things around sooner.
1. Being 'signaled' and getting chopped down
Many newcomers to the crypto world are led in by 'signal groups' or so-called 'big shots', and after a spree of random buying, they end up being cut down to nothing. These 'masters' seem to know a lot, but they are really just seasoned pros leading you into a pit. Remember this: who really has an amazing strategy will tell you for free?
2. Chase highs and cut losses, losing faith in life
When the market spikes, you rush in, thinking this time it will surely take off, but end up standing guard at a high position. When it drops, you panic and sell at a loss, only to see a rebound the next day that makes you furious. Most people have experienced this; don't deny it. The ones who really make money are those who are 'steady as a rock', not the retail investors chasing highs and cutting losses.
3. Entering due to FOMO emotions, getting cut and left confused
Seeing others become rich overnight, can't help but go all in? As a result, you get stuck at a high position and become a bag holder. Don't say you haven't tried it; watching others make money while you can't resist jumping in is the magic of FOMO.
4. Trusting insider news too easily, fantasizing about getting rich
Someone in the group says, 'This coin is going to rise 10 times, hurry and get on board', you believed it, and the result is that the coin price plummeted. Most insider news is just to offload to you, and true opportunities for wealth won’t be known to ordinary people.
5. Falling for 'high-yield mining' and 'wealth management' scams
Many people have heard that a certain mining platform offers an annual return of 50%, 100%, or even higher. In a moment of excitement, they invest their money, only to find that the platform has run away, resulting in total loss. There is no free lunch; high returns are mostly traps.
6. Trading too frequently, fees eat up profits
Frequent coin swapping and trading may seem busy, but when you calculate at the end of the year, you've spent thousands on fees, and the actual profits are minimal. Want to make money? It’s better to stay patient and reduce unnecessary actions.
7. Resisting market trends, stubbornly holding on
After buying in, the price keeps falling, and you think, 'I'll wait a bit longer for it to come back', but it just keeps dropping deeper, ultimately leading to liquidation. Too many people have stepped into this pit; the key is still a matter of mindset. Not knowing when to stop losses can only lead to deeper trouble.
8. Randomly invest without understanding the white paper
Hearing others say a certain project has potential, you throw money in without even reading the white paper, only to find out later that the project team is a scam, and they ran off after cutting you. Not doing your homework before investing is a costly mistake.
9. Blindly trust 'big influencers', follow their trades
Many people like to follow the trades of 'big influencers' on Twitter and Weibo, immediately jumping in as soon as they post about a coin. As a result, once you buy in, the price starts to drop, and you become 'the leek among leeks'. Don’t forget, many 'big influencers' are backed by teams, and their signals are scripted.
In the crypto world, many people want to make quick money, but only a few actually succeed. Instead of constantly stepping into pits, it's better to take steady steps. If you want to survive in the crypto world long-term, the most important thing is to maintain a clear mind and do your own research, rather than blindly following trends.
So, after reading about these pitfalls, how many have you fallen into? Recognizing the problems and adjusting in time is the key to going further in this market.
