2025-12-28 15:21:52

A trader who has been navigating the crypto market for many years recently reflected deeply after hearing stories from newcomers around him.

There is a friend named Xiao Yang, who lost 10,000 USD in just three months. It’s not that he was unlucky, but that he actively fell into three classic traps. Today, I want to share my years of experience in avoiding these pitfalls and explain how to truly steer clear of them.

**Trap 1: Chasing highs and selling lows is just padding the exchange’s costs**

When SOL rises 5%, he rushes in; when BTC drops 3%, he cuts his losses immediately—this is how Xiao Yang burned through 1,500 USD in fees over three months. Such scenes are all too common in the crypto world. When prices fluctuate, the brain instantly shorts out, and fingers follow suit uncontrollably.

Psychological studies have looked into this: frequent traders have 27% lower activity in the prefrontal cortex during decision-making compared to long-term investors. In other words, the more you trade, the more it resembles instinctive gambling rather than investing. The 24/7 volatility of the crypto market, with its ups and downs, directly stimulates the dopamine reward center—this is by design.

My current method might sound silly: after every trade, I enforce a 24-hour lock-up period without action. Just this one rule has helped me avoid at least three late-night margin calls and liquidations. Market opportunities are always there, but if your principal is gone, you’re truly out.

**Trap 2: Believing in "call signal masters" is just giving them traffic**

Xiao Yang followed the hype and bought so-called "100x coins" projects, throwing 3,000 USD into them, only to end up with zero. This isn’t entirely his fault—newcomers have limited channels for information and are easily misled by marketing hype mistaken for investment truth.

But the harsh truth is: most online “signal providers” are influencers who secretly receive promotion fees ranging from 10,000 to 100,000 USD from project teams, and they don’t even hold those coins themselves. They’re not after investment returns; they’re after followers and traffic. How much money you have doesn’t matter to them at all.

SOL1,25%

BTC0,13%

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SandwichTrader

· 8h ago

Really? chasing gains and selling losses is just giving trading fees to the exchange. I used to do the same, lessons learned the hard way. It's ridiculous, watching the market all day long, impulsively buying and selling, half of my position gone in three months due to fees. Those so-called signal providers are just outrageous, they don't even enter the market themselves, only collecting promotion fees. Your money is just a number to them. Locking your position for 24 hours is brilliant. I do the same now, it really helps avoid a bunch of midnight crashes. Newbies just have an information gap, daring to go all-in on 100x coins without understanding anything. How can they not lose? Once the principal is gone, the game is truly over. You need to take it easy. People who trade frequently just can't keep up mentally, just like gamblers. Crypto is designed to stimulate your dopamine, you need some self-control. Sigh, I feel sad when I see newcomers falling into traps, but some pitfalls you have to experience yourself to learn the lesson.

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CoffeeNFTrader

· 9h ago

Really, transaction fees can drain a person completely. I used to be foolish and operate frequently, but now I just freeze myself for 24 hours, much more worry-free. Following online influencers is just asking for trouble. They don't even spend a penny on promotion but pretend to be here to make you rich. Can't even smile. The biggest enemy for beginners isn't the market, it's that uncontrollable finger of theirs. The set of signals from the calling master really should be popularized. Too many retail investors are still dreaming of a hundredfold coin. $1500 in fees—how many times do I have to lose to earn that back? It's heartbreaking.

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zkProofGremlin

· 9h ago

Sigh, Xiao Yang's recent move is indeed a classic rookie mistake. Chasing highs and selling lows is really just working for the exchange. The 1500U in fees is gone just like that, so painful. I've also seen too many people fall into traps with the hundredfold coin. Behind the influencer calls are always money, and they don't even move themselves. The 24-hour lock-up trick sounds silly but is actually effective. The market is always there; losing the principal is the biggest loss. The biggest fear for beginners is information asymmetry; it's too easy to be harvested like a leek.

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airdrop_huntress

· 9h ago

Chasing gains and killing losses is really slow suicide; just the fees can wipe out the principal. 1500U in fees sounds outrageous but it's not exaggerated at all; I've experienced it too. The so-called signal calling experts are so disgusting, taking money behind the scenes while not actually trading themselves. It's all about your popularity and hard-earned money. Locking the position for 24 hours sounds stupid but it really works. It's much more cost-effective than frequent losses.

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