In cryptocurrency trading, many people lose money not because of bad luck, but because they keep stepping into the same traps. I’ve summarized some of the most common mistakes—see if you’ve fallen for any of them.

First is the issue of capital management. Going all-in with full leverage on a single asset is like betting all your chips on one number—any slight dip can lead to liquidation. Another type of trader is someone who, without any research foundation, goes all-in on a single coin, which is even more dangerous.

Next is the problem with trading rhythm. High-frequency trading and excessive turnover essentially feed transaction fees and slippage to the exchange; chasing highs and selling lows is a classic but deadly mistake—always buying at the top and selling at the bottom; some traders buy low and sell high, operating completely in reverse.

Position management is also crucial. Some hold onto worthless coins without fundamentals, hoping to get rich overnight; others cut off profitable positions prematurely, allowing losing positions to run further—this is a typical reverse operation.

Mentality and cognitive flaws are even more dangerous. Some like to go all-in instantly when building a position, not understanding the principle of "slow is fast"; they have no concept of valuation for the coins they hold, just fantasize without basis; they overcomplicate simple issues and don’t understand "less is more"; others blindly trust technical analysis and volume-price relationships as the sole basis for trading.

Most traders have fallen into these traps, but the key is to learn lessons from them. What other common fatal mistakes have you encountered? Share in the comments.