This is one of the major problem with every investor or trader that they often lose their money after entering the crypto market.
Traders start losing money when they do trading while investors after holding for two to three years still they lose money.
In this post I will try to explain some of the points that why people lose money in the crypto market.
First of all, the main thing is the anatomy of a crypto bull run cycle.
These type of people don't know about the cycle of bull and bear market and that is the main point that an investor can keep in mind.
This will help you where to invest and where to take position also where to sold all your holdings.
I have around five years of experience in the crypto market and still I'm losing money in this market.
The main reason is that I have recently understand about the bull and bear phase cycles.
Just two year ago when the price of Bitcoin reached the level of $17,000. I was thinking about that it will go to 4000 or 5000 USDT but that never happened and the price rebounces from this level and reached all time high of 74,000.
This is my main mistake that I didn't buy at 17,000, I start buying when I find that Bitcoin reached its all time high and at that time I start thinking that the price will keep on going to reach the level of 100K.
What happened? The price came down to 50,000 which creates a panic among many investors and they start panic selling because they understand that the price will now go again to its all time low and the bear cycle has again restarted.
These are the wrong concepts that every investor have in his mind because they don't know about the bull and bear cycles.
Another reason that people lose money in this market is that they play with their emotions.
They don't have proper learning and they don't do analysis instead they came in emotion and start buying and selling blindly which results in loss.
The last thing which I understand is that many new users that start losing money in the crypto market is that they don't know even ABC of this market.
First of all, they need to learn well about this market, understand the phase cycle, understand the psychological rollercoaster of a market.
These are very necessary for an investor in order to avoid losses.
What do you people think? Have you ever profit in this market? Will you agree with my thoughts? Will be glad to see your answers in the comment section.
I hope you find this post useful and informative. If you do, please remember to reblog it so that it reaches as many people as possible and that they can benefit the most from it. Also, remember to upvote, which will help me financially and grow my account.
IMAGE TAKEN FROM CANVA
Thank You!
Best Wishes.