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Why are retail investors in the crypto circle easily becoming bagholders? The root cause is not the market trend, but the mindset and strategy before entering the market have not been well refined. Many people confidently claim "value investing," while their accounts are shrinking rapidly, shouting "hold long-term," but in reality, they are already trapped and stuck. To turn from pure losers into genuine participants, you must first understand the seven common pitfalls.
First, don't have illusions about obscure coins with no trading volume. Some coins haven't moved in over half a year, and you're still waiting for them to get rich overnight? The reality is that funds always flow to places with vitality. Coins with no volatility or popularity are like abandoned projects, and will eventually become worthless. I've seen people stubbornly hold onto obscure coins, only to ask later whether to add to their position. This shows they haven't seen the true face of the market—being ignored doesn't mean undervalued; it means truly worthless.
Second, in a bull market, following the leading coins is the safest bet. Capital always concentrates on the strongest few coins, which is a market rule. Some insist on going against the trend to "pick up bargains," but the leading coins surge 50%, while their own coins only rise 5%; when the leaders pull back 10%, they've already been cut in half. Retail investors can't profit from the gap-up moves; just eating the leading coins' gains is enough. Don't expect to find that black swan.
Then there's position sizing—this is the line between life and death. Someone risking all their assets in a single trade is either a gambler or hasn't learned from market lessons. Sudden policy shifts, exchange issues, or contract liquidations happen frequently in the crypto world. Those who survive and keep fighting are those who strictly control individual investments, stagger their entries, and leave room for adjustments. Even if they make three wrong moves, a small position can turn around; but a single mistake with a full position might mean no second chance.
The last and most overlooked point: when the trend is unclear, it's better to wait rather than push hard. The market's signals are clear enough only when it's truly time to act.