We are now in the New Year of 2023, and I would like to share with you the most common reasons why new crypto investors are getting "rekt" and losing money. Regardless of your crypto investment or trading strategy, these should be prioritized. Once you have corrected these errors, you will be able to make rational crypto decisions and prepare for the next Bitcoin bull run.
Why ninety percent of new investors lose money:
- being unfamiliar with crypto markets and the structure of market cycles. The market is cyclical.
- entering the crypto market at the wrong time, during the bull market's peak. The media's encouragement of new investors to enter the crypto space at market peaks facilitates crypto's mainstream adoption.
- not grasping the complication of cryptocurrencies. 90% of people do not comprehend cryptocurrencies or how to purchase their first Bitcoin.
- lack of technical knowledge regarding the storage and transfer of crypto funds. Sending cryptocurrencies to the wrong blockchains, as a result of insecure management of sensitive private and log-in data, results in the loss of funds for numerous users.
- exhibiting impatience and avarice with a "get rich quick" mentality. Capital flows from weak to strong hands, or from impatient to patient investors, on financial markets, including the crypto market.
- making uninformed decisions due to a lack of market dynamics and price behavior knowledge. Many investors are unaware that the market follows consistent patterns or waves.
- making irrational investment and trading decisions based on emotions and a lack of market psychology understanding. The crypto market, like any other financial market, reflects human emotions. Fear and greed typically cause investors to commit the same errors.
- not understanding crypto security precautions. Frequently, funds are lost due to inexperienced users losing access to their wallets or private keys and falling victim to con artists. .
My non-financial advice for newbies would be to learn the fundamentals of cryptocurrencies in depth, develop a solid set of technical crypto and safety skills, and spend three to six months observing and monitoring crypto markets.
Before making your first crypto investment, take some time to educate yourself and avoid rushing into the market.
Invest in yourself for a better future, advises Cryptolearn.
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