Why 90% of new investors losing moneyHi Tradingview Crypto community!
We have stepped into New 2023 Year and today I would like to list and share the most common reasons why new crypto beginners are getting “rekt” and end up losing money. Whatever your crypto investment or trading strategy is, these should be considered as a priority. Once you address these mistakes first, you will be able to make rational crypto decisions and prepare yourselves for the next Bitcoin bull run cycle.
Why 90% of new investors losing money:
-being new to crypto markets and having no knowledge about market cycle’s structure. Market moves in cycles.
-entering crypto market at the wrong time and at the peak of bull market. Crypto mainstream adoption works in the way that media encourages new investors to join crypto space at the top of markets.
-not understanding the complexity of cryptocurrencies. 90% of people do not understand the concept of cryptocurrencies and how to buy their first Bitcoin.
-lack of technical skills how to store or transfer crypto funds. Many people losing funds because of not managing their sensitive private and log in data safely, sending cryptocurrencies to wrong blockchains.
-being impatient and greedy with a “getting rich quick” mindset. Financial markets including crypto works in a way that capital flow from weak to strong hands, from impatient to patient investors.
-making uninformed decisions due to lack of knowledge about markets dynamics and price behaviour. Many investors do not understand that market follows the same patterns or waves.
-making irrational investment and trading decisions based on emotions and not understanding market psychology. Crypto market just like any financial market is a reflection of human emotions. Investors tend to make the same mistakes based on fear and greed emotions.
-not understanding crypto safety and security measures. Often funds disappear due to new people losing access to wallets or private keys, being naïve and falling into a trap of scammers.
My non-financial advice for new beginners would be to learn in depth about cryptocurrencies fundamentals, develop a good set of technical crypto and safety skills, spend 3-6 months watching and paying attention to crypto markets.
Don’t rush into the markets and spend some time to educate yourself before making your first crypto investment.
Cryptolearn:” Invest in yourself for a better future”.
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