7 Reasons You’re Losing Money In Crypto And How To Avoid It

Cryptocurrency trading is getting popular day by. The virtual money designed to act as a medium for financial cryptocurrency transactions is mainly based or developed using blockchain distributed ledger technology. A computerized database acts as a ledger to record all the details regarding transactions conducted by users. Crypto money doesn’t exist in the physical world means it doesn’t have a physical appearance.

The cryptocurrency was first introduced in 2009 by an anonymous programmer or group of programmers with the introduction of the first cryptocurrency “Bitcoin.” Cryptocurrency follows a decentralized operation where no Central controlling authority exists in this concept. The existence of cryptocurrency had solved issues regarding double-spending and fraudulent techniques.


Many people are active users of crypto, and potential users count increasing day today. Cryptocurrency fluctuates in nature, which cannot be predicted easily. The value of cryptocurrency may rise to a profitable level for the users and may lead to a loss. Many websites and portals are available for customers to buy and sell these cryptocurrencies using their fiat money.

There are different forms of cryptocurrencies available worldwide, such as

  • Litcoin
  • Bitcoin
  • Libra
  • EOS
  • Namecoin
  • Dogecoin
  • Gridcoin etc.

Thus many cryptocurrencies develop after the first cryptocurrency, Bitcoin.

The benefits of cryptocurrency using are many. It attracts more potential customer users—the main advantages of adaptability, where cryptocurrency can be converted easily to another type of cryptocurrency or fiat money. International transactions become easy with cryptocurrency. The security of these cryptocurrencies is strong. The encryption mechanism deployed while designing these cryptocurrencies makes it hard to decode during the transit or at endpoints.

Confidentiality is more than alternative traditional financial methods because no third party involvement is required during the transactions using cryptocurrency means no one other than the two parties involved in the transaction we’ll know the details about it.

The trading of crypto is increasing, and many people invest in this trading. Many factors affect this trading. And for successful trading, some things to be considered so that investors don’t lose their money. Many people have benefited from cryptocurrency trading and earn money. Some people lost money in crypto because of not knowing this. Has mentioned, cryptocurrency is volatile. Its value changes from time to highly risky time.

Reasons for losing money during crypto trading

  • Crypto price fluctuates from time to time, making it impossible to know which time is best for investment and trading and not regulated properly. Person trade when the price of cryptocurrency sinking then will be a loss for the user.
  • Many people don’t have proper knowledge of the crypto industry and how it works. Because of this, many people lose their money without knowing. Many people don’t understand the concepts in crypto trading properly, which may lead to losing money.
  • A proper trading strategy is needed so that investment and withdrawal are made at the correct time.
  • Emotions play a major role in crypto trading. During trading, emotions and greed should be controlled properly to avoid taking the wrong step.
  • Many countries are crypto-friendly, and many are still against cryptocurrency, which sometimes affects its market value. The issue of the legality of cryptocurrency is still a problem in many countries.
  • Many people don’t want to take a proper risk in crypto trading, which is an essential part of trading. Many people hesitate in this factor which needs to be managed properly.
  • The lack of a better platform for crypto trading is also a reason for losing money.
  • To make cryptocurrency trading beneficial and lower the risk, one should identify what is going wrongly. Things should remember and do so that losing money can be avoidable in crypto as follows

Selecting strategy:

Strategy plays an important role in crypto trading because it helped lower the risks of losing money. The strategy helps to know the perfect time to buy and a perfect time for trading, which helps gain profit. The price of cryptocurrency changes irregularly, so sometimes, one needs to wait for long periods such as more than avoiding loss.

Research on trading:

Research on reading is important because before investing in something, proper knowledge of it is important. It plays a major role in the results because it clarifies what to do and what not to do. There are even or websites that help give suggestions on strategies and other tips for crypto trading.

Patience and discipline:

Patience is more important when it comes to trading because one should need to wait for a long time to acquire profit. Sometimes, constant efforts are needed to understand the market’s flow, price fluctuations, and are reactions. Emotions should be controlled properly to avoid making any impulsive mistake. Some people make some mistakes due to stress, which leads to losing their money.

Keeping an eye on other factors:

Some factors affect the fluctuations of cryptocurrency prices in the market, which need to be monitored regularly. Keeping an update on the news related to cryptocurrency and the related issues is helpful in beneficial trading.

Selecting terms of profit:

It is advisable to focus on short-term gains .many people focus on short-term gains, which is quite beneficial. There are cases where a person becomes rich in one night are examples of short term gains. It is better to be a well-planned decision instead of a poor and impulsive decision.

Risk management:

An important factor in any trading, that involves the risk of losing money at some point. It is better to invest a limited amount that is affordable to lose to affect a person’s daily life. The limitation should be when some percentage is saved for unpredictable issues or to cover up the losses that may happen in the future.

Mediator facts:

Many people are unaware of the facts of cut taken by middlemen. There is always a medium for making cryptocurrency trading, which is acts mediator for the processing. Such mediators take service fees, excessive penalties, and exchange fees. Some of the cost cuts in cryptocurrency trading are the

  • Cost of funding,
  • Cost of intermediate crypto-coin to crypto-coin funding,
  • Withdrawal fees,
  • Cryptocurrency to a fiat conversion fee,
  • The fee per trade.


Anyone can make cryptocurrency trading and make profits accordingly. But before starting a trade, one should know about the details regarding the trade and factors that affect the trade results. As mentioned above, having proper knowledge and doing some research on the process, and taking suggestions from experienced persons helps successful trading. Well planned trading gives better results because strategy can be planned after a thorough understanding of it.

Many websites and trading centers are available in the online market to make it easy for users to trade. Experience plays a major role in trading as it helps understand the concepts of it. Strategies regarding trading are also available in the market to help beginners for successful trading.

Identifying the mistakes made previously helps correct it so that no mistakes happen for the next trade, thus explaining why trading results in loss and gives suggestions to help make corrections so that the next trading gives beneficial results.

Leave a Comment