8 Harmful Mistakes That New Crypto Traders Often Make

Let's get straight to the point — if you're new to cryptocurrency trading, there's a high chance you've made one ( or all ) of these mistakes. Don't worry, we've all been there. But if you don't fix them, you'll be out of the market faster than your first stop loss order. 1️⃣ 📚 Start Without Learning Anything Many newcomers to the crypto market jump in with the mentality that whenever they see a trend or someone else doubling or tripling their investment, they just dive in. They buy coins based on "herd mentality," following tips from one person or another, but they don't spend any time researching the fundamentals, reading analysis articles, or learning investment knowledge. This is extremely harmful 🤦‍♂️. The crypto market is highly volatile; if you jump in without any knowledge, even a minor shock can scare you, leading you to panic sell at a loss. Investing without learning usually results in very poor outcomes: you can easily get lost and lose money without understanding where you went wrong 😥. 2️⃣ 💸 Transactions with Small Change, Spare Money It sounds safe because you use idle money and change in your wallet. But this itself also creates a dangerous 🕳️ psychological trap. When you trade with only a few hundred thousand (hoặc a small hơn), you will not feel real pressure and it is easy to rush into trading as if you are having fun. When I lose, I am afraid because "I lose a little money", and when I make a profit, I am under the illusion that I am good at it and then pour more capital into it without calculating. No matter how small the amount is, it's real money – take it seriously as an investment to learn. As a result, every profit or loss is meaningful, and you will learn from each trade 💰. 3️⃣ 🕒 Hope to Get Rich in a Week A very common mistake is expecting to get rich quickly. The crypto market indeed has strong "pumps," but no one can be 100% sure that buying today will double your profit next week 😇. Many newcomers hear stories of big wins and dive all-in on one coin hoping for an instant jackpot. The result? There are no continuous bumps: the market fluctuates wildly, it might be all green today and all red tomorrow. You can only make small profits or incur big losses by chasing FOMO. Crypto is not a game of chance where you can get rich this week and poor next week 😉. Stay alert, set realistic goals, and focus on a long-term plan rather than getting lost in the illusions in front of you. 4️⃣ 🔍 Blindly Copying Others Most newbies often see the "trading masters" or famous YouTubers as living legends, and then focus on copying all their trades without fully understanding the reasons behind them. This is very dangerous 😵. Each trader has different strategies, time frames, and risk tolerance levels. Someone might set a stop loss at 5%, but how can you handle the pressure if you buy when the price has already increased by 10%? Not to mention, there is plenty of misleading or outdated information online. Don't just look at others getting rich and think that copying them is enough. Learn to analyze information, make decisions based on your understanding, and don't let yourself become a blind copy. 5️⃣ 😓 Losing Means Giving Up Losses are an unavoidable part of trading. However, many newcomers still cannot accept failure; after losing a few times, they tend to "give up". They think, "Oh well, I probably am not suitable for this, let's move to the more stable stock market," and withdraw all their money, completely abandoning trading. The truth is, if you consider losing as being incompetent and walk away, you will never know your true potential. The crypto market is very harsh; sometimes a few painful losses can make your money disappear 😞, but that is also the time when you need to calmly review your strategy, learn lessons, and prepare for the next opportunity instead of giving up ✨. 6️⃣ 😡 Emotion-Based Trading Greed, fear, and anger can influence all your trading decisions. Many newbies often FOMO (, afraid of missing out on opportunities ), rushing in when they see prices rising, and panicking to sell everything when prices drop slightly. The trading method of "ignoring emotions" can easily lead you to act impulsively and then regret it. The market does not care about your emotions: it will rise or fall based on information and supply and demand, not your mood. Staying calm and sticking to the plan is the key to success 😌. 7️⃣ ⚠️ No Risk Management Plan Another serious mistake is the lack of a risk management plan. Many newcomers see a hot coin and immediately pour all their capital into it without a "safety net". Imagine this: you participate in trading but don't set a stop-loss level of (stop-loss), or confidently invest 100% of your capital into an order. When bad things happen (the market turns red, unexpected bad news ), you will lose everything without a chance to react. To avoid this pitfall, create a detailed plan: Set a stop-loss order for every trade, adhering to a risk level of about 1-3% of capital each time. Diversify your portfolio ( and do not put all your money into a single coin pair ). Determine your expected profit ratio in advance and stick to your plan. A little preparation can save you from burning your account. 🔥 8️⃣ 📒 Do Not Log Transaction Many young people, seeing the busy crypto market, forget to keep records. But this is a fatal mistake: you will keep spiraling in the same lessons without realizing your mistakes. A simple trading journal can just be an Excel file or a notebook, recording the time, volume, entry/exit price, and reasons for the trade. When reviewing, you will see where you often go wrong: choosing the wrong time frame, not cutting losses early, or being too greedy. Only when you know where the mistakes are can you correct them. That is the secret of professional traders: learning from their mistakes rather than repeating them endlessly.