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A Reddit viral discussion fell the curtain on one of the most persistent stories of the cryptocurrency: that 90% of investors lose money. What started as eight years’ hesitation in a user to enter the crypto has evolved into a complete analysis of the reason why most people fail – and how some select regularly.
The Reddit community has identified several key behavior models that stimulate the majority of cryptographic losses:
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Emotional trading dominates decision -making: The most cited reason for losses? Pure emotion. Users have constantly described a purchase model focused on the FOMO in Market Peaks followed by the sale of panic during accidents – the classic error “buy high, sell low” which afflicts retail investors in all asset classes.
The SH * Tcoin trap: A significant part of the losses comes from investments in what the community calls “Shitcoins” or “same corners” – specialized altcoins with little fundamental value. These investments are described as closer to the game than to invest, many projects being scams or pump and dump plans.
Trading vs invest confusion: The discussion reveals a crucial distinction: those who lose money are generally “traders” who try to timed markets thanks to frequent purchases and sales, while those who benefit are “investors” or “savers” who hold for long periods.
Perhaps the most striking insight in the discussion is what users call the “four-year warranty”. Several commentators claim that anyone bought Bitcoin and held it for four years or more “still earned money” – unrelated to its initial entry point.
Mathematics behind long -term properties A user said that even with the worst timing possible, the minimum Bitcoin yield over a four -year period was 25% per year. Although this figure requires verification, it underlines the confidence of the community in the long -term trajectory of Bitcoin.
Market cycles and patience The Bitcoin market operates in cycles of approximately four years, alternating between the bull and bear markets. Successful investors, according to discussion, understand these cycles and resist the desire to sell during temporary slowdowns.
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A recurring theme in the discussion is the separation between bitcoin and other cryptocurrencies. Users systematically supervise bitcoin like:
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A protocol and a decentralized value tank
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Fundamentally different from the tokens issued by the company
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A savings vehicle rather than a speculative investment
Meanwhile, altcoins are often characterized as:
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Business speculative products
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Higher risk with dubious fundamental principles
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More likely to handle and scam
The most frequently approved strategy by profitable investors is the average cost at a cost, which makes small regular purchases, regardless of price fluctuations. This approach:
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Reduces the impact of timing on the market
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Built positions gradually over time
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Deletes the emotion of investment decisions
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Capitalizes on market volatility through coherent purchases
The discussion reveals several principles of critical risk management:
Matters portfolio balance Many losses result from putting too much money in high -risk and low capitalization parts rather than maintaining a balanced approach focused on established assets such as Bitcoin.
Speculation on speculation Successful investors emphasize the importance of understanding what they buy rather than following influencers or chasing fast profits.
Realistic expectations The community warns against rich mentalities rich in wealth, noting that the sustainable wealth building requires realistic return and expectations of return.
An interesting plot-intrigue in the discussion focuses on the question of whether the current market conditions represent a new paradigm. Some users indicate factors such as:
However, veterans investors are quickly displayed with the history of the market, noting that “this time is different” was claimed – and proved to be false – with each previous cycle.
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Although the Reddit discussion does not provide difficult statistics, users suggest that the real percentage of crypto losers could still be more than 90% – with certain estimates reaching 95 to 99%. This is aligned with similar models on other speculative markets such as option operations and day trading actions.
Key information: These high failure rates are not specific to the crypto but reflect wider models of behavior of retail investors on the speculative markets.
Based on the collective wisdom of the community:
For conservative investors:
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Focus on bitcoin rather than altcoins
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Use the average cost in dollars over time more than four years
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Avoid frequent trading or market synchronization attempts
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Maintain realistic expectations concerning yields
For tolerant investors at risk:
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Limit speculative exposure of Altcoin to small wallet percentages
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Research projects in detail before investing
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Understand that most altcoins are closer to the game than to invest
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Be ready for total loss on speculative positions
For all investors:
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Invest only what you can afford to lose
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Control emotions during market volatility
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Focus on quick-profile education
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Distinguish investment and trading strategies
Reddit’s discussion suggests that the story “90% loses money”, although potentially precise, masks a more nuanced reality. The majority of losses seem to come from foreseeable behavioral errors: emotional decision -making, inadequate research, speculative game on questionable projects and the attempted timing of volatile markets.
Those who constantly take advantage of a remarkably simple game book: buy Bitcoin regularly, hold several years and resist the desire to negotiate frequently. Although this approach is not excited to chase moon moons, it seems that it is the only strategy with coherent success of success.
The question of potential investors is not to know if people lose money in crypto – they do it clearly. It is if you can maintain the discipline to follow the proven strategy while avoiding the emotional and speculative traps that trades the majority.
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This item The statistics of cryptography “90% loses money”? Experienced investors say it is misleading – here is what they do instead Originally appeared on Benzinga.com
