Cognitive Biases That Destroy Crypto Portfolios

Most traders think they lose money because the market moved against them.

In reality, they lose money because their brain moved against them.

Markets are uncertain by nature — but certain psychological patterns repeatedly turn normal volatility into consistent losses.

The most common ones:

Loss aversion — holding losers, selling winners
Recency bias — increasing risk after wins, shrinking after losses
Confirmation bias — seeking opinions that support your trade
Anchoring — refusing to exit because of your entry price
Overconfidence — one good streak leads to one catastrophic trade
Herd behavior — feeling safe when everyone agrees

None of these are intelligence problems.
They are human wiring.

The solution isn’t stronger willpower.
It’s structure.

Professionals rely on predefined rules:

fixed risk per trade

predetermined exits

consistent position sizing

limited inputs during execution

They remove decision-making during emotional moments.

Because most portfolios don’t fail from a bad strategy.

They fail from the same mistake repeated under pressure.

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#Crypto #Trading #Investing #Psychology #RiskManagement