Why do 80% of traders lose money in the crypto world? The truth may be more heartbreaking than you think.

Have you heard this saying – “80% of traders lose money”? In the crypto world, this number is even higher. But this is not a bug; it's the underlying logic of the market: for every trade, there are winners and losers, and not everyone can profit. Given that, what makes you think you belong to that 20%?

Three Habits That Kill Newbies

First Killer: Leverage

Leverage is like a shot of adrenaline. You originally wanted to earn $100, but with 5x leverage, it turns into $500 - sounds great. But the opposite is also true. Leverage is not a profit amplifier, it is an emotion amplifier. When you see a 5x loss on the screen, your brain can’t handle it. That’s why those who use leverage often can’t hold on until the stop-loss second.

Second Killer: Greed

Greed will make you:

• FOMO (“This wave is definitely going up”)
• No stop loss (“can rebound at any time”)
• all in (“Since I have confidence, I bet everything”)

The result is that a single loss can wipe out all past profits. Even top traders cannot escape this. Greed is essentially a psychological issue that needs to be addressed.

Third Killer: Emotional Trading

Too negative to watch the news? Start panic selling. See others making money? FOMO chasing the highs. Your trading logic changes every second. How can you make money like this?

What is the current situation of BTC?

Look at the “temperature” of the RSI indicator:

• Monthly Line: RSI 58 → Neither cold nor hot, quite normal.
• Weekly: RSI 78 → A bit hot, it might be time to consider taking profits.
• Daily: RSI 61 → Neutral stance
• 4 hours: RSI 58 → also neutral

In simple terms: currently, there is a mid-term and long-term upward trend, but the weekly chart is a bit overheated. This is the time for “fair winds and following seas,” not a time for taking risks.

How to stand out among the 20% winners

1. Quit leverage — Without leverage, the worst result is losing all your principal. With leverage, you might end up in debt. Which one to choose?

2. Have a long-term strategy — Don't look at the 4-hour chart every day. Set your goals, take profits regularly, and don't worry about the rest.

3. Stop loss and position management — These two are the real lifelines. Only if you can afford to lose, can you live longer.

4. Emotional Detachment — Do not use living expenses for trading. Losses in the trading account should not affect your sleep.

Final Words

The market will now give you all kinds of negative news, aimed at scaring you into cutting losses. But if you have a real strategy, real risk management, and real psychological preparation, all of this is just white noise.

Ask yourself three questions: What are your trading rules? Where is your stop loss? If this trade incurs a loss, can you bear it?

If you can answer this, you are smarter than 90% of people.