After 8 years of Cryptocurrency Trading, I've seen too many people fall into these four traps. Today, I want to share some hard truths that every newbie must read.

First, the cost of averaging down is a mathematical trap.
Buy 10 for 10, buy 5 to supplement 10, do you think the cost is 7.5? Wrong! The real cost is 6.67. Because the number of coins bought at 5 is large, it directly pulls down the average price. This algorithm is best understood by the market makers, just waiting for the newbies to miscalculate.
Second, compound interest is the real profit.
With a capital of 100,000, earning a guaranteed 1% every day would amount to 1.32 million in a year. Don't believe it? Just take a calculator and check. The question is, can you really stop once you earn 1% every day? I tried it for three months and it fell apart.
Third, a 60% win rate is enough.
100 trades, 60 times earning 10%, 40 times losing 10%, in the end still making 300%. Sounds simple, right? But the reality is that most people want to earn more when they make a profit, and stubbornly hold on when they lose, ultimately ending up with nothing.
Fourth, turning 10,000 into 100 million is a fairy tale.
Theoretically, if you earn 10% every time and win 97 times in a row, you can turn 10,000 into 1 billion. But the reality is that 99.99% of people die halfway. Why? Just two words: Greed! After earning, they want to double it, but end up returning to square one overnight.
The cryptocurrency world is a large slaughterhouse of human nature. Those who shout about getting rich every day eventually become someone else's ATM. The ones who truly survive are the tough individuals who can control their hands.