Why is it so difficult for some people to make money in the cryptocurrency world?

After immersing yourself in the cryptocurrency world for a while, you will realize a cruel reality: most ordinary investors end up losing money. Many communities are full of complaints about losses and being stuck, and even those who make profits in the short term find it difficult to maintain profitability for a whole year.

What is the reason for this situation? Is it that when entering the market, it seems easy to watch others make money, but it is difficult for you to replicate your success?

First, a common misunderstanding is: underestimate the complexity of the market. The entry threshold of the cryptocurrency world is relatively low, and many investors start trading without adequate preparation, ignoring the importance of learning and mastering investment knowledge. They often do not have a deep understanding of candlestick charts, market trends and investment strategies, and thus psychologically underestimate the professional requirements of investment.

This underestimation may come from being overconfident in their achievements in other fields and mistakenly believing that they can easily succeed in the investment field. However, each field has its own professionalism, and new entrants often need to start from the basics.

Secondly, incorrect attribution is also one of the reasons for losses. Many investors will reflect and summarize after trading losses, but they tend to attribute the reasons to external factors, such as the market environment or economic conditions, rather than examining their own investment decisions, knowledge level and mentality.

For example, when house prices fall, people tend to blame it on the economic environment rather than their own lack of understanding of the real estate cycle. Similarly, when business is bad, they often complain about fierce competition and economic downturn rather than their own business strategies.

People tend to look for reasons from the outside and ignore self-reflection. This tendency is also prevalent in the cryptocurrency circle. After losing money, investors often fail to deeply analyze their own problems, such as investment skills, market cognition and mentality management.