Having been involved in the crypto space for seven years, I've seen too many people come in full of hope and leave disappointed. Every time I'm asked "Why do I always lose money," I think of the lessons learned through real money. To put it simply, there are four common pitfalls, and nearly all losses can be avoided by understanding them.

**Frequent Trading is the Number One Killer**
Many treat the trading market like a casino, always thinking "being out of the market means losing," and thus entering and exiting ten or more times a day. It may look like capturing volatility, but when you factor in fees, slippage, and other hidden costs, your principal gradually diminishes like water leaking away. Over three months, losing 30% of your funds is not unusual. True opportunities require patience and waiting. The more you rush to "make more trades," the easier it is to be led by the market. Stopping, and holding back, is the first step to making real money.

**High Leverage is a Fast Track to Bankruptcy**
With the mindset of "turning it around in one shot," risking 80% of your assets on a single coin and using 10-20x leverage—this is the most direct way to self-destruct. I've seen people make several times their gains with leverage, only to have their accounts wiped out instantly when a shitcoin project rug pulls. Leverage is like a double-edged sword; it amplifies your gains but also your losses. A 5% adverse move in the market can wipe out your entire principal.

**Psychological Trap: Take Profits and Run, Hang On During Losses**
This is the most common mental trap. Taking profits at 5% and rushing to lock in gains, but hoping that a 30% loss will bounce back next time. Some even add to their positions when support levels break, only to lose 80% of their capital and have no chance to recover. The market doesn't punish you for taking profits too early; it punishes you for holding on too late. Small losses are just minor injuries; refusing to admit defeat is the real killer.

**Not Setting a Stop-Loss Means Running Naked**
Too many traders open positions based on feelings, never planning risk in advance, always thinking "the market will move as I expect." But in crypto, there is no guaranteed trend. A policy negative news or a sudden market plunge can cut your position in half instantly. Not setting a stop-loss is like driving without a seatbelt—everything is fine until an accident happens. Stop-loss is the bottom line for survival in trading; it must be part of your trading discipline.

All the veteran traders I know who are still making money today treat stop-loss as an iron rule. Being shaken out occasionally is better than having your account wiped out. Ultimately, the logic of making money in crypto is quite simple: eliminate unnecessary frequent trades, stay away from the temptation of high leverage, learn to use scientific take-profit and stop-loss strategies, and always respect market risks. Only by protecting your principal can you wait for the true moment of profit.