Why do people lose money in the crypto market?

BuxCoin

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Quote from: Sonu_titu on July 31, 2019, 05:52:54 AM

I was reading some article and came across some common reasons why people lose money in the crypto market. I felt Newbies will be helpful from this. Some of the reasons are:

Trying to get rich faster: For example, if the price of a coin is increasing and it has reached a peak, one will try to invest on that without thinking about the future rate down fall. Due to FOMO, the people will rush to invest on it without thinking much.

Taking profits early: If the price is surging drastically, one will be eager to invest on that coin without waiting for it to increase more. Will be in a loss, if we try to invest early.

Following the Crowd: By seeing some trading sites or trading groups investing on a particular coin, following them blindly without checking the actual price chart of the coin and investing on it, will lead to a loss. My advice to newbies, please do not follow the crowd blindly without proper investigation before trading.

Lack of Knowledge: Last but not the least, all these reasons why people lose money is because of lack of knowledge.

>> What are the other reasons why people will lose money in the market? Please share your thoughts on this.

Please check the image below, where you can understand better than the text explanation.

Image source

this are mistakes not only in crypto market in general every trader makes this mistakes and not only this many more mistakes are done and this some of this mistakes are even done by professional traders also

Theb

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Quote from: CherylltheBombshell on September 19, 2019, 07:33:26 AM

Of course its the lack of knowledge on cryptocurrency is the most possible reason why people lose money. If you only just get excited that someone you knew earn as much as money here that’s why you joined then you need to think twice since this is an investment that we need to take/think seriously and put much effort to earn.

I'm surprised that this is now the second page of the thread amd still no one has answered anything about people losong money because of their emptions and how their patience can make or break a trade. I know a lot of people lose money because they lack even the basic knowledge of trading but both newbies and seasoned pros alike are losing money because of the panic and hype happening in the market, it's one of the reasons why they don't get to stick to their trading plan and mess up their strategy. Controlling your emotions as well as not believing everything you see will help you prevent losing money more.

CherylltheBombshell

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Change Your Worlds Build a New Era!

Of course its the lack of knowledge on cryptocurrency is the most possible reason why people lose money. If you only just get excited that someone you knew earn as much as money here that’s why you joined then you need to think twice since this is an investment that we need to take/think seriously and put much effort to earn.

TalkStar

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Quote from: Sonu_titu on July 31, 2019, 05:52:54 AM

Taking profits early: If the price is surging drastically, one will be eager to invest on that coin without waiting for it to increase more. Will be in a loss, if we try to invest early.

Lack of Knowledge: Last but not the least, all these reasons why people lose money is because of lack of knowledge.

Actually Couple of reason works behind losing money in the crypto market. Specially beginners act so fast to make money from crypto investment. This quick activity put them behind from having proper knowledge about real time market condition. Without having deep knowledge you can't expect best return from any kinda investment and same apply for the crypto too.

In my opinion for successful crypto investment its highly necessary to have proper knowledge about the exact time of investment. If anyone can build this quality first then other things get much easier for him.

tukagero

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Some are being greedy, others doesnt even know what project they have invested as long as they saw these lines, invest and see your money grow without doing anything, they will grab the project immediately without researching.

Purvik

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Due to lack of knowledge people blindly believe Television, Newspaper broadcasting messages and just on sudden decisions and SELL what they HODL and even for a price drop they do SELL. We need to have more patience when we have a goal to achieve our targets.

FlamingFingers

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One of the main reason is that lots of new comers try to look at crypto as a get rich quick scheme, looking at crypto which such perspective is totally wrong, the aspect of taking profits early I don't think it really one of the factors why people loose money in crypto

There are lots of people who took early profit from bitcoin and other solid project when it was trading low and they are regretting it, buying of shitcoins and holding for long term is another causes of reasons why people loose money

The3max

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https://leasehold.io/

A very unique question topic. Do you think there is charity in the cryptocurrency market? No, there is a lot of risk here, with every trade, every order, it contains a little or a lot of risk depending on your experience and options. Besides scams also cost us money. Be alert

Malvika_sitlani

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Now days if you are trading in crypto industry so that you can make money from that.Here are few tips I will share-

Always try to do your own research if you are investing on any coin and don't believe on all social media news because it is not true everytime.
Try to trade with some good strategies.
Hold and buy the coins when its value is low so that you can get more profit in future when the market is increase.
Also you can search about all coins volume, supply and price of the coins in every seconds on coinmarketcap.com so that it would be useful for everyone to invest.
Try to read the whitepaper of the coin so that you can decide wheather that coin is worth investing or not.

leowonderful

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Bitcoin FTW!

Some people don't cut their losses early enough and get caught holding positions or coins underwater as well. Ideally, you cut losing trades out early and let your winning trades run. Pretty important concept to understand, especially if you're trading on leverage and you have a liquidation price. It's not always a good idea (almost never) to ride a trade down to liquidation, and you should have determined your stoploss and exit before you enter a trade. If you don't have that planned out yet, don't enter a trade yet.

Alternatively, you can just dollar cost average into a coin and hold it for the long term. Pretty low risk if done correctly, easy, and people usually earn more from doing this than trading.

wattcrypto

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They don't buy in the dips or invest too quickly in a project without doing much research. I think people who choose to day trade back and forth also lose more money than people who don't hold their coins

boyptc

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Quote from: OranG3 on August 03, 2019, 09:50:08 AM

Quote from: boyptc on August 03, 2019, 07:49:46 AM

I can't understand why 'taking profits early' is a reason why people lose money.

You are taking profit so why lose money? it should be greediness. We are bound to think of higher profit and those people who are taking profit earlier are even wiser than those who greedy people and want more increase.

They can ride the swings and use the profit they had as their purchasing power for lower price.

+ Agree. However it came to me after multiple HODL-disasters Grin

It's part of hodlers life, we came through many hold-disasters and the ones that endured are now enjoying and can start selling if they want to.

DdmrDdmr

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There are lies, damned lies and statistics. MTwain

Quote from: ?? on ??

<…> The best source of crypto trading is the new ebook for crypto trading beginners.Newbies learn crypto trading from scratch and in great detail <…>

What ebook are you referring to? The article you reference in your posts points is written by somebody in the team of a given trading platform, but there seems to be no ebook reference in either site.

Turk Ace

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I like buying coins that others seem to think they know so much about and refer to as shitcoin. Some of these shitcoins can make small amounts of profit which others look down on because they want to get ric hover night but if you add it all together from various coins you can pocket some nice profit which you can use to increase the stock of your prime currencies such as eth or bitcoin.

Sonu_titu

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Quote from: gentlemand on August 03, 2019, 06:03:16 AM

A lack of discipline and an inability to control emotion are the main ones, plus not having any type of plan is deeply unhelpful too.

This line just took me off. You are highly right discipline and control are emotion are key things. And these two can only be gained by practice.

Successmaniac4

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People lose money due to panic selling. And also FOMO scares people to buy when they are not even ready to invest. Then unexpectedly, the price just drops. People also lose money due to lack of information on a particular coin.

OranG3

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Quote from: boyptc on August 03, 2019, 07:49:46 AM

I can't understand why 'taking profits early' is a reason why people lose money.

You are taking profit so why lose money? it should be greediness. We are bound to think of higher profit and those people who are taking profit earlier are even wiser than those who greedy people and want more increase.

They can ride the swings and use the profit they had as their purchasing power for lower price.

+ Agree. However it came to me after multiple HODL-disasters Grin

boyptc

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★Bitvest.io★ Play Plinko or Invest!

I can't understand why 'taking profits early' is a reason why people lose money.

You are taking profit so why lose money? it should be greediness. We are bound to think of higher profit and those people who are taking profit earlier are even wiser than those who greedy people and want more increase.

They can ride the swings and use the profit they had as their purchasing power for lower price.

cryptohulp.nu

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Well people are always saying that you should store it offline, but if you do not store your private key safu it does not matter.

rosezionjohn

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Quote from: Sonu_titu on July 31, 2019, 05:52:54 AM

Taking profits early: If the price is surging drastically, one will be eager to invest on that coin without waiting for it to increase more. Will be in a loss, if we try to invest early.

This does not make sense. Why would we be in a loss if we take profits early? You don't call it profits if you are at a loss.
Did you copy this from somewhere else and removed some of the text?

Topic: Why do people lose money in the crypto market? (Read 433 times)