Why do so many investors lose money in Crypto?

Currently a segment of global youth is investing in crypto. Investors are constantly increasing in the crypto market but at the end of the day it is a big problem with every investor or trader that they often lose their money after entering the crypto market. It is a common phenomenon nowadays that both new and old investors start losing their money by investing. Be it for a very short period of time or for a long period of time. However, there are some exceptions. It happens to you or me too. You can never deny in one word that you have not lost money either. Maybe you are a skilled investor now but you lost something when you were new. Anyway today I will try to discuss with you some important points why most of us lose their money by investing in crypto.

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First, the vast majority of investors who enter the crypto market do not actually invest with proper knowledge about crypto. Even these investors do not really know when to invest or when not to invest or how and in what manner to invest. Even a section of investors don't know about bull and bear market cycles in crypto and this is the key thing that an investor can keep in mind. The most important thing is that when a new investor invests without adequate knowledge of the market, they have no idea where to invest and where to take positions and where to sell all holdings.

New or old in the crypto market both investors lose money. No one is truly an expert here. The biggest thing is that crypto is famous for its volatility and when exactly what will happen sometimes even the most experienced investor cannot tell for sure. Because they sometimes behave in ways that even experienced people cannot predict correctly. Due to which it can be seen that even big investors lose their money due to lack of liquidity. If you understand the bull and bear phase cycle correctly then you can recover a lot of your money or increase your money by a good amount at the end of the day. Although there may be occasional exceptions when the market goes in opposite direction but if you can apply proper planning and proper strategy and proper knowledge then at the end of the day you will not lose money easily.

To be honest, when the price of Bitcoin hit its all-time low two years ago and went below $2000, many thought that the price would go much lower. To be honest, those of us who are not experienced tend to think that the price of the coins has started to fall and that they will go down to zero. Then a kind of panic arises in us and out of that panic we start selling the coins we have. And big whales take advantage of this. Again, when the pump starts giving wrongly sometimes, then we think that the prices have started to increase and we will regret a lot if we don't buy. And out of this panic we start buying and it turns out that at the end of the day we lose more than we gain. That means we don't want to increase our knowledge at the end of the day due to which we lose our money very easily and don't read well about which coin is good or the white paper of that coin due to which we sometimes buy some coins which are out of market after few days. Or they go down to a point where they don't go up. And because of all these reasons we basically lose our money by investing.