Why 90% of Crypto Traders Lose Money

For a whole lot of people, they still find it hard to understand the mystery behind why a lot of people will make money in the crypto space and some people will lose a lot of people. In fact, it has been proven that a whole lot of people lose money in the crypto space much more than what they earn and it is quite disheartening. As a crypto trader, the joy is to make money and so when you keep losing money, it is something that can cause sadness.

Today I really want to dive deep to the major reason why a lot of people lose money in the crypto space and we are going to discuss it together. So stay tuned. The first major reason is the fact that a lot of people lack proper education and understanding on how the market actually works. This was also the mistake I made early when I joined the crypto space. I enter the crypto market without not having the adequate knowledge about how the market works and at the end, I made some decisions that was just emotional driven which eventually lead me to lose a huge amount of money.

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The mistake a lot of people always make also that make them lose money is they engage in emotional trading. Some of them even though they have trading strategy and what they engage into and what they should not engage into, some of them, due to greed and fear, it either make them to overtrade or at the end of the day makes them to engage in something called panic selling. A lot of people due to FOMO were not able to control their emotions and so go against their trading strategy and which at the end of the day, it leads to massive loss which for them should not be so. Greed have pushes a lot of trader to over leverage which should not be so. Some hold onto gain for so long until it becomes loss.

The next big mistake a lot of people always make is that they lack risk management. Some traded did not even practice stop loss, some did not practice take profit and some did not even have trading strategy, they just enter the crypto space when they feel like. Some did not even diversified. All of these things at the end of the day, can go a long way to contribute to massive loss of money when trading. The big issue is a lot of people did not even pay attention to all of these things until they lost a huge amount of money.