Let us be all honest for a minute, Are we here for the tech in crypto? Sure:) Blockchain is awesome and all, but let’s face it you came here to make a bank. And that’s totally fine! But before you can start raking in the dough, you’ve got to master the art of not losing your hard-earned money. 

That’s what we’re diving into today, why do I keep losing money in crypto? There are six surefire ways to drain your crypto wallet faster than you can say ‘moon,’ and I’m here to help you dodge them like a pro.

And be sure, if I find a way to make money (or avoid losing it), you are reading that shit first. So let’s get into it!

Top 9 Reasons “Why Do I Keep Losing Money in Crypto”

Gather ’round, Crypto Adventurers! Well, we now list down for you these sneaky culprits that are eating away at your wallet faster than the word “blockchain” rolls off of it.

Consider these the villains of your crypto tale, and we are here to equip you with how those superhero moves.

Let’s dive into each villain and give you the knowledge to fight back. This handy guide is to steer you clear of all those oh-so-tempting but disastrous pitfalls by mastering the art of strategic trading.

We have provided a playbook that can aid your crypto journey from being nothing short of horror to more like that success saga. 

With the above tips under your belt, go fasten your seatbelt and keep scrolling through these next two sections where each headline will disclose moves to have a robust touch over your crypto game.

Believe me, by the time this ride ends you will be a ninja at avoiding mistakes and savings growing your stash of crypto.

Leverage Trading: The Fast Lane to Losing It All

To start with, leverage trading is also known as the biggest money pit in the crypto world. It’s tempting, right? You’ve seen that sweet 245 %, 487%, and 700% gains plastered all over Telegram, discord, WhatsApp, Twitter, Facebook, Reddit, Instagram, and everywhere else. 

But here’s the thing trading is hard. Like, hard. And leverage trading? That’s a whole different beast. It’s like trying to ride a wild bull you might think you’re the coolest person in the room, but one wrong move and you’re flat on your back, staring at an empty bank account.

Trust me, I’ve been there. I saw someone make 297% in two seconds and thought, “I can do that too!” So, I went all in with 100x leverage, thinking I was the next crypto genius. Insider alert: I wasn’t. A few seconds later, my account was blown. Shuff . . . 

If you’re thinking about leverage trading, please proceed with caution. For the love of Money, don’t trade with money you can’t afford to lose. Be a patient and long-term investor, you’re less likely to lose money

Overtrading: The Secret to Losing Sleep and Money

It’s time to talk about overtrading, which is hoping you will be a crypto mogul in 24 hours by trading on at least 100 trades per day.

This is not going to happen, spoiler alert overtrading is like trying to win a marathon by sprinting the whole way, you are just going to tire yourself out and likely fall flat on your face. 

You do not even have to hit all those 500% gains in every trade to play the crypto game like a boss. I hardly know what the market wants to do, and that leads me to leave trading for when I have a clue again. In this crypto world, patience isn’t a virtue it’s a survival technique.

If you want to win the game of trading crypto or anything else, really stick to just one or two trades a day. Whether you win or lose, make it a rule: no more than two trades.

The idea of making up for your losses by overtrading? Forget it. It’s just not going to happen. 

When you’re trading non-stop, you’re not making smart decisions you’re making emotional ones. So, keep it cool, and don’t let your brain turn into a mushy, overtrading mess.

Emotions: The Silent Portfolio Killer

Now, here are the emotions that can be your worst enemy in this crypto game. Good old FOMO (fear of missing out), the nasty little monster we all share inside of us telling you that everyone is getting in on whatever it may be, and if implemented quickly, your entire world could change today!

It’s like being at a party and seeing everyone having a blast, while you’re stuck in the corner worrying if you should have bought that meme coin everyone’s talking about.

Trust me when I say, that chasing every hot trend is the equivalent of trying to play high-stakes musical chairs with your crypto portfolio.

Therefore, do not fall for FOMO that causes you regrettable impulse trades that’ll have you kicking yourself later. Remember, it’s okay to miss out on a party if it means you’re not losing your shirt.

Be the cool cat who watches the chaos and maintains a balanced bank account while everyone else burns.

Getting real about trading you must tackle FUD, FUD (Fear, Uncertainty, and Doubt) the trifecta of trading anxiety that can make even the bravest investor break into a cold sweat.

It’s like that moment when you’re about to order dessert, but then someone mentions calories and you suddenly question every life choice that led you to this point. 

FUD is the market trying to scare you out of your investment decisions, turning you into a nervous wreck who’s convinced that the sky is falling.

But guess what? The more you let FUD sneak into your brain, the more likely you are to make hasty decisions that you’ll regret later. 

So, breathe deep, ignore the panicky headlines, and remember: sometimes, the best move is to stay calm and stick to your game plan.

Let me tell you a story. I bought my first Solana at $12 and, a few months later, sold it for $16. Sounds like a win, Right? But here’s the kicker: I didn’t sell the whole thing.

Nope, I was the crypto pro 😎, I was buying and selling every tiny dip like a maniac. 

In short, instead of a sweet profit I lost 35% of my portfolio. So, here’s the moral of the story: Don’t be a pro like me. Just stay with your plan, and reel yourself back in. Your future self will thank you for it!

Crypto Scams, Hacks, and Rug Pulls—Oh My!

Crypto land is a jungle where scam, hack & rug pull the predatory animals that stalk their prey. how much money has been lost in crypto scams? In 2023 over $2 billion in crypto was hacked, stolen, or exploited. Yikes. I mean, that’s better than the $4 billion lost in 2022, isn’t it?

From January 2020 to February this year, international crime syndicates injected $75 billion into crypto exchanges.

Yep, you read that right—seventy-five billion smackers! Said Griffin (expert analyst and writer on financial fraud). These scams include Facebook crypto scams, telegram crypto scams, WhatsApp crypto scams, etc.

Therefore next time you think your crypto portfolio is a big deal just remember there’s another underworld out playing in the billions!

Look, you can avoid most of these pitfalls by being smart. Don’t reuse passwords, store your seed phrases safely, and—this is a big one—do your research. 

Do your research before investing. Do not just throw your money into the latest meme coin because some random person on Twitter said it’s going to the moon. Understand what you’re investing in.

Read the white paper, watch videos, and listen to people who know what they’re talking about like, for instance, pro2crypto.

how to get money back from crypto scams? Certainly, there is the least possible chance of recovering your money from scams, so the best way is to avoid them, by taking security measures and also doing proper research regarding an asset or an exchange before investing.

Where you can access all that information? From different websites like coinmarketcap, cryptoslate, coin gecko, and obviously pro2crypto. 

Read our article on how to access data from coinmarketcap and glassnode 

Diversification: Don’t Put All Your Eggs in One Basket

Diversification is your friend. Don’t bet all your money on one horse because if that horse stumbles, you’re done.

Spread out your investments, balance your risk, and give yourself a better chance at success. Trust me, you don’t want to be the person who loses everything because they went all in on Doge 2.0.

Even in every sector of life, it’s crucial to diversify your portfolio. Think of it like this: don’t put all your eggs in one basket—unless you enjoy a thrilling game of “Guess Where My Money Went!” Mix things up with a sprinkle of crypto, a dash of stocks, a pinch of real estate, and a splash of business ventures.

That way, if one basket drops, you’ve still got plenty of others to save the day.

Mismanagement of Crypto Funds—Security Is Key

Last but not least, don’t mismanage your funds. Remember that British guy who accidentally threw away a hard drive with 7,500 Bitcoin on it? Yeah, that’s worth over $350 million now. Don’t be that guy.

Listen up, folks: whether you’re using a centralized exchange or a self-custody wallet, security isn’t just a suggestion—it’s a must-do! Treat it like your grandma’s secret cookie recipe: protect it with your life. Enable two-factor authentication, and keep those passwords under lock and key!

Double-check the address before Transferring Crypto

Alright, here’s a pro tip: always use the correct address for the right blockchain, or risk losing your funds faster than you can say “Oops!” 

Imagine sending your shiny new Bitcoin to an Ethereum address or Ethereum on Solana address. You’ll lose every last bit of it, with no chance of recovery. 

For the love of all things crypto, double-check those addresses before you hit send. Because nothing says “OMG!” like sending your hard-earned funds to the digital Bermuda Triangle. Stay sharp and keep your crypto safe.

More than 2.5 million Bitcoins have been lost due to mismanagement—don’t add to that statistic.

Stop-Loss Safety Net: Don’t Trade Without It!

Alright, crypto crusaders, here’s the golden rule of trading that’s gonna save your bacon: always use a stop-loss! Think of it like setting a safety net before you start walking the tightrope of trading. 

Planning your stop-loss before you even dive into a trade is like making sure you have a parachute before you jump out of a plane.

And for the love of Satoshi, don’t go fiddling with it mid-flight! Once you’ve set your stop-loss, let it do its job. Just like you wouldn’t change the tires on a speeding car, don’t mess with your stop-loss once the trade’s in motion. 

Do your homework, plan your trades, and keep that stop-loss firmly in place. Because the only thing worse than a bad trade is a bad trade without a safety net! 

Plan, Research, Execute: The Trade Triad

So, here we go. Think about it, you would not step into a spacecraft without checking to make sure the fuel isn’t low or making sure space doors won’t break. Your trades work the same way.

Make sure you have done your homework before launching: technically, fundamentally & on-chain. It is the equivalent of having your trading roadmap and GPS in place before clicking launch.

Stick to your plan! But using it, even when your trade is set on course for the Bermuda Triangle. Don’t forget, a trader without his plan is like Batman without Alfred.

One off-ramp and it’s not the end of the world — it’s a lesson in disguise.

So, plan and do some research on it. You probably would thank me for saving you on a butter-smooth ride!!! 🚀📈

The Grand Finale: Take Your Profits

Finally, there is the question of when to book a profit. That’s where everyone does it (myself included) It can feel like it’ll never end when your portfolio has doubled or even tripled in a relatively short period.

But guess what? It will. Have a plan, take gains, and enjoy. Stay hungry but not greedy that is the quickest way to lose everything you worked for.

So there you have it you do not lose money in crypto guide To this, take notes and reminders… follow it digitally! And hey if you enjoy this content be sure to share, and leave a comment about which mistakes have you made…

I hope this was helpful, and I will catch you (hopefully) in the next one!

Conclusion

So, why do you keep losing money in crypto? Well, you’re not alone—many of us have danced the dance of crypto loss and lived to tell the tale.

If you’ve ever wondered, “Why do I keep losing money in crypto?” you’re in good company. The answer isn’t one-size-fits-all, but let’s break it down.

This blog has laid out the ultimate guide on how not to lose your money in crypto. By steering clear of these slip-ups, which we’ve conveniently detailed in this blog, you’ll be well on your way to keeping your crypto gains intact. 

Why do I keep losing money in crypto? It could be because of leverage trading—where the promise of quick riches often leads to quick ruin.

Or perhaps it’s overtrading, where the frantic frenzy of trades turns your portfolio into a rollercoaster ride of chaos.

Then there’s FOMO, that mischievous monster whispering, “You’re missing out!” and leading you to chase every crypto craze like a headless chicken.

Why do I keep losing money in crypto? FOMO’s the culprit behind those impulsive buys that have you kicking yourself later.

Sometimes, it’s FUD that has you second-guessing every move, turning your investment decisions into a guessing game.

Then there’s the classic blunder of mismanaging funds, like sending assets to the wrong blockchain address and waving goodbye to your money with a tragic “Oops!”

Always be aware of crypto scams and crypto frauds on different platforms such as Facebook crypto scams, WhatsApp crypto scams, and Telegram crypto scams.

Lastly, It’s because of poor diversification. Betting everything on one investment is like putting all your chips on a single number at the roulette table. Mix it up and spread your bets to keep your portfolio from imploding.

So, to sum up, if you want to stop asking, “Why do I keep losing money in crypto?” follow these tips, keep your cool, and stick to your plan.

Crypto is a marathon, not a sprint. Now go forth and invest wisely—your future self will thank you!

Hey, if you’re more of a visual learner or just want to see these tips in action, I’ve got you covered.

Check out this quick video where I dive deeper into how to avoid those sneaky pitfalls that drain your crypto wallet

Watch the video and level up your trading game!

FAQs

What can cause the loss of cryptocurrency?

One of the primary ways in which you can lose cryptocurrency is due to risky leverage trading combined with over-emotional decision making while other sources may include overtrading or sudden change in the regulatory environment. Furthermore, hacking and scammers target inexperienced investors, lose access to your private keys, or send assets to the wrong address. losses could result from a lack of security such as poor storage practices and Always vigilant and secure, to save your investments.

What are the 9 biggest mistakes every trader makes?

The most common mistakes are trading with emotions, not putting stop-loss, mismanagement of portfolio, trading without analysis, not taking profits,  Leverage trading, not diversifying their portfolio, becoming a victim of crypto scams, and Overtrading.

What should I do to avoid losing funds due to mismanagement?

Always double-check that you’re sending crypto to the correct blockchain address. Sending assets to the wrong address can result in irreversible losses. Treat your investments with the same care you’d give a valuable item—securely and cautiously.

When is the right time to take profits?

Have a plan and stick to it. Don’t wait until your portfolio’s value skyrockets; set profit-taking goals and follow them. Staying hungry but not greedy is key to preserving your gains and avoiding losses.

Why do 70% of people lose in crypto?

Because of bad decisions and rookie mistakes. Most people dive in headfirst without a plan, chasing after shiny hype trains and falling for every “moon” promise they see. Others go all-in on risky trades, like betting their entire fortune on a single spin of the crypto roulette wheel.

If you are trading emotionally, like succumbing to FOMO (Fear of Missing Out) or FUD (Fear, Uncertainty, Doubt), also plays a big role in sending portfolios crashing faster than a cat meme going viral. Plus, a lack of research and security blunders like sending your crypto to a random address doesn’t help. 

What should I do if I fall for a crypto scam?

As you might have guessed, it is difficult to get your money back from a crypto scam and refunds on stolen cryptocurrencies are almost impossible. Your best line of defense is prevention—be aware and be educated. If you believe that what happened to you was a scam, report it and tell people about it in order not for others from having the same fate.