“Following internet celebrity recommendations to buy new coins, and then they drop 90%; wallet mnemonic phrases stored in the cloud, and waking up one day to find assets reduced to zero.” In 2025, the cryptocurrency market evaporated tens of billions of dollars, mostly due to these basic mistakes. As an analyst who has tracked market data for many years, I found that both beginners and seasoned investors easily fall into these “fatal traps.” Today, let’s break down the common questions from Binance Square users and explore ways to avoid these pitfalls one by one.
First, let’s look at a shocking set of data: In 2025, over 92% of newly issued tokens dropped at least 90% from their historical peaks, with 60% of asset losses stemming from user operational errors, rather than hacking attacks. Among the top 10 most common mistakes, “blindly following investment trends,” “ignoring wallet security,” and “overtrading” ranked in the top three, which are also the most frequently seen issues in my private messages on Binance Square.
For each error, provide practical solutions to everyone:
First, avoid blindly following trends: Before investing, you must spend 10-20 hours researching. Check on-chain data through Dune Analytics, review audit reports on Certik, and refer to Binance Square's 'Project Interpretation' column for professional analysis. If you cannot clearly explain the project, do not invest.
Second, protect wallet security: The mnemonic phrase must be handwritten or engraved on a metal plate, cloud storage is prohibited, Binance Wallet supports biometric authentication, it is recommended to enable two-factor authentication, and regularly use Revoke.cash to revoke unnecessary permissions. The
Third, eliminate excessive trading: It is recommended to trade only on daily charts, prioritize blockchains with low transaction fees, use limit orders instead of market orders, and utilize Binance's 'Trading Log' feature to record each transaction, helping everyone control trading frequency.
Finally, here’s an asset allocation suggestion: Allocate 50-60% of funds to Bitcoin and Ethereum, 20-30% to mainstream Layer-1 and Layer-2 tokens, 10-15% to DeFi blue chips, and the remaining portion for short-term speculation. This allocation can withstand market fluctuations and seize growth opportunities. Follow me @链上标哥 to avoid getting lost! Let your investments take fewer detours.
