If you’re new to crypto, the first thing you’ll notice is this:
prices move fast — up and down.
This is normal, and understanding why it happens can help you avoid common mistakes.
🔹 Why Does the Crypto Market Go Up?
Crypto prices usually rise because of:
• 📈 High demand (more buyers than sellers)
• 📰 Positive news (ETFs, partnerships, adoption)
• 💰 Market optimism (bullish sentiment)
• 🧠 Technical breakouts above key levels
When many traders believe prices will go higher, buying pressure increases — and prices move up.
Why Does the Market Go Down?
Drops happen for many reasons:
• 📉 Profit-taking after a strong rally
• ⚠️ Negative news or uncertainty
• 🐋 Large holders selling
• 🔄 Normal corrections after fast moves
Important: not every dip means a crash.
Corrections are part of a healthy market.
Common Beginner Mistakes
Many new traders lose money because they:
• Buy when prices are already very high
• Sell in panic during small drops
• Trade without a plan
• Use high leverage too early
Avoid emotional trading — crypto rewards patience