In the spot cryptocurrency market, many people have experienced the same frustration — buying and then falling, selling and then rising, repeatedly being washed out.

Watching $RIVER, $WCT, $ZKP these coins double in value in others' hands while you suffer losses through market cycles. Why does this happen?

Actually, the problem isn't with spot trading itself, but with many traders' insufficient understanding of market volatility patterns. Spot trading is not a fixed deposit; it's a long-term game, and the market will never be responsible for your entry points.

**The three most common pitfalls in spot trading**

**Pitfall 1: Chasing Rises and Selling Dips**

Seeing a coin surge over 30% in a single day and feeling compelled to jump in? Chances are, large funds are already offloading at that moment, and retail investors just become the bagholders. The reality is, many people become the last to get on board at this stage.

A smarter approach is to set a defensive line: when a single-day increase exceeds 30%, hold back and give the market a three-day cooling-off period, observe the pullback extent, and then decide whether to enter based on actual conditions.

**Pitfall 2: Blind Bottom-Fishing**

Thinking that an 80% decline is the right time to buy, only to find out the coin can still be cut in half? This is a typical "catch at the knife's edge" mentality, which often results in the greatest losses.

The real bottom usually looks like this: sideways consolidation, gradually decreasing trading volume, rather than wave after wave of waterfall declines. A safer strategy is to wait until trading volume shrinks to about one-third of its normal level before considering low-cost entry.

**Pitfall 3: Over-Diversification**

Having ten or more coins in your portfolio sounds like "risk spreading," but it actually traps you in another dilemma — when the bull market arrives, the coins that truly rise are the ones you didn't allocate to, leaving you just watching others make money.

Instead of scattering your investments, focus on researching 3 to 5 targets, follow their development and market performance over the long term. This makes it easier to outperform the market.

**Core Logic of Spot Trading**

Spot trading can be profitable, but only if you master cycle judgment, capital management, and patience. In simple terms, three iron rules: don't chase after big daily gains, don't bottom-fish during waterfall declines, and avoid spreading attention across dozens of coins.

These are not theories; they are market laws summarized after countless practices. The underlying logic of the market is information asymmetry and psychological game-playing. Mastering the rhythm is more important than blind operation.