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Retail investors' reasons for losses in the crypto space always come down to the same deadly habits. Reflect on it—how many have you fallen into?
**Frequent trading is the number one killer**
Seeing the market decline makes you restless, rushing to adjust your positions, but the more you trade, the messier it gets. Short-term volatility is mistaken for a long-term trend, turning what was meant to be short-term trading into long-term holding with losses. When the market pulls back, the losses become even deeper than expected. This behavior of entering and exiting frequently eats up part of your profits through trading fees and causes emotional swings that impair decision-making.
What should you do? Choose a coin with solid fundamentals and good long-term growth potential, understand the overall direction, and hold steady. Short-term pullbacks in a bull market are normal—don’t be scared. Patience is key to earning real money.
**The trap of chasing highs and selling lows is the deepest**
When the market starts rising, many people see the gains and become greedy, rushing to buy in, often at the top. Conversely, when their holdings fall, they lose confidence and panic-sell. This turns what could have been profitable opportunities into actual losses.
Think the other way around: downturns are actually good entry points. Especially in a strong bull market, those intermediate pullbacks are often "golden pits," perfect opportunities to buy at low cost. Blindly chasing the high? Most of the time, you’re just contributing to the bagholders at the top.
**Remember this investment logic**
To succeed in the crypto world, it’s not about participating in every market wave but truly understanding market cycles. Find projects with potential, hold patiently, and let time and trends work for you. The rule "sell on dips, profit on rises" should be etched in your mind—only then can you avoid the common losses that retail investors fall into.