#BTC Why are newcomers more likely to lose money in the cryptocurrency circle?

In the cryptocurrency circle, there are various reasons for losses, involving multiple levels such as psychology, strategy, and market understanding. Among them, as a newcomer to the market, it is easier to be cut by the market as a leek, and the following are some of the main reasons that I have summarized based on years of experience:
1. Money management + insufficiency
The scale of funds is small, and it is difficult to bear large losses. The circle is volatile, and once the market falls, the limited funds are easy to be deeply trapped or liquidated.
Insufficient access to market information + market
Information is asymmetrical, and information is complex and rapidly changing, and the poor often lack access to and analyze professional information. In contrast, deep-pocketed investors have easier access to inside information or professional analysis.
2. Investment mindset + and strategy issues
In a hurry, the poor often want to change the status quo quickly, and are prone to choose high-risk speculative behaviors, such as frequent trading and heavy positions in small-capitalization currencies, which often lead to losses.
Lack of patience, currency investment needs to hold high-quality assets for a long time, but the poor often operate frequently because of short-term fluctuations, missing long-term closing
3. Market environment and policy risks+
The market is volatile, and the volatility of the circle is much higher than that of the traditional financial market, and it is difficult for the poor to grasp the opportunity in the violent fluctuations, and they may lose their money if they are not careful.
Policy risk is high, the cryptocurrency market is strictly regulated by the policies of various countries, and the uncertainty of the policy may lead to a market crash.
4. Investment opportunities and resource constraints
The mining threshold is high, Bitcoin mining requires a large amount of capital investment to buy mining machines and pay electricity bills, it is difficult for the poor to participate in it, lack of professional tools, and circle investment requires professional analysis tools and strategies, but these often need to pay or have a high technical threshold, which is difficult for the poor to obtain.
5. Psychological factors + and decision-making errors
Greed and fear, while the circle is a market that magnifies the weakness of human nature, and the poor are more likely to swing between greed and fear, leading to poor decision-making.
Lack of stop-loss awareness+, the poor often hold the "return to capital" mentality, unwilling to stop loss, which eventually leads to the expansion of losses.
To sum up, the loss in the circle is not caused by a single reason, but is the result of a combination of factors. If you want to make money in the circle, you must overcome the weakness of human nature and turn the disadvantage into an advantage.
I, Duan Chenbei, have been in the financial market for ten years and have seen too many failures and successes. Among them, the newcomer's participation in the training is particularly eye-catching, if you are preparing to enter the market or have already operated but not ideal, you may wish to talk to me. Many valuable experiences may help you avoid detours and get on the right path early. #BTC #ETH