I have been immersed in the cryptocurrency market for eight years, witnessing too many investors go from passionate to disappointed.

Whenever someone complains to me about "why am I always losing", I throw out four pitfalls - these are summarized from the ruins of liquidation.

The first pit: can't stop trading

Many people treat trading as gambling, with the mindset that "idleness is wasteful". They stare at the K-line and enter and exit dozens of times a day, seeming to be "chasing volatility", but when they calculate the costs of fees and slippage, the principal directly shrinks by thirty percent. In reality, true opportunities are very few, and the more one wants to earn, the easier it is to be led by the market.

The second pit: excessive leverage

A bunch of people cling to the dream of "turning things around" and invest eighty percent of their principal in one coin, while also using high leverage. I know a guy who indeed multiplied his investment several times with leverage, but later, like a sleepwalker, he went all-in on altcoins, the project team disappeared, and his account was directly wiped out. Leverage is a double-edged sword - it can amplify your dreams but also your nightmares. If the market moves against you even by 5%, your account could hit rock bottom overnight.

The third pit: run when making profits, hold when losing

This is the easiest psychological trap to fall into. Once you make a 5% profit, you start to feel uneasy and have to cash out; but once you start losing, you develop a gambler's mentality, waiting for a "rebound" even after a 30% loss. Some people watch the price break through support levels while still increasing their positions, ultimately losing eighty percent of their principal, with no chance of recovery left. What the market fears most is not you taking profits too early, but you cutting losses too late.

The fourth pit: no stop-loss

Too many trades are based purely on feelings, without planning for risk in advance, always believing that "things will go as I want". However, the cryptocurrency market has no guaranteed trends; a bad news event or a market plunge can halve your position in an instant. Not setting a stop-loss is like driving without a seatbelt - it seems calm most of the time, but when something goes wrong, it can be fatal.

The people around me who manage to survive in this market almost all regard "stop-loss" as an ironclad rule. Even if they occasionally get shaken out, it's far better than blowing up their accounts.

The Federal Reserve has restarted interest rate cuts, increasing volatility, making risk management especially crucial. Many newcomers in such an uncertain environment are more prone to making these mistakes.

To put it bluntly, making money in cryptocurrency assets is actually not difficult:

Reduce random trading, stay away from high leverage, learn to take profits and cut losses, and hold a respectful attitude towards risk.

Preserve your principal and avoid liquidation, only then will you have the opportunity to wait for the real profit cycle. $BTC #加密市场观察