95% of crypto traders lose money, and the majority are retailers.
According to a Cointelegraph research, 95% of Bitcoin traders lose money. Mizar has estimated that there are approximately 7,000,000 active cryptocurrency traders, but surprisingly, only 350,000 of them make profits over a one-year period, and in bearish times, this number is much lower. The reasons why the majority of traders, about 6,650,000, fail can be categorized in a few ways.
Firstly, emotions, such as FOMO, FUD, hope, regret, fear, greed, and more, can lead traders to make wrong decisions at the wrong time.
Secondly, most traders do not have a well-defined trading discipline, and they may trade the news without considering the trading strategy to use before buying and selling any token. This lack of risk management means most traders do not set up their profit, stop loss targets, or split their orders into multiple pieces for Dollar Cost Averaging.
Finally, buying and selling cryptocurrencies has become so accessible that anyone can enter the market without proper trading and crypto know-how, which often results in losses.