5 Crypto Trading Mistakes You Must Avoid (Learned the Hard Way)

I lost 920 USDT I had on FTX — and if there’s one thing crypto trading taught me, it’s that I should’ve kept that money in a Trezor wallet instead.

Not because I was new, but because I was reckless. These mistakes drained my portfolio, burned through months of progress, and taught me the hard way how unforgiving this space can be. If you’re serious about thriving in crypto — not just surviving — avoid these traps at all costs.

Mistake 1: Not Using a Trezor for Long-Term Holding

I used to trust centralized exchanges like FTX. Big mistake. When it collapsed, I lost $920 I had sitting there “just for a while.” I knew better, but I ignored my instincts — and paid the price.

Here’s the brutal truth: if your crypto isn’t in your wallet, it’s not really yours. I’ve seen people lose life-changing money because they didn’t take self-custody seriously. Exchanges suspend networks all the time. You try to withdraw, and suddenly “maintenance.” Your funds are stuck. Not your keys, not your coins. That’s the rule. Period.

Now I use a Trezor wallet — it’s offline, hacker-proof, and gives me peace of mind. I don’t worry about exchanges going bankrupt or getting hacked. If you’re holding for the long term, or you want total control over your crypto, don’t wait another day. Move it to cold storage now.

Mistake 2: Overtrading and Revenge Trading

I’d be up late at night, watching charts, trying to “win it back.” After losing $370 on one trade, I went all-in to recover… and lost another $80. It became emotional, addictive, and self-destructive.

Most of us aren’t professional traders. We don’t need 20 trades a week. What we need is a strategy — and emotional discipline.

Lesson: Stop trading like it’s a slot machine. Stick to your plan, and walk away when emotions take over. One good trade beats ten desperate ones.

Mistake 3: Ignoring Risk Management (No Stop-Loss)

In 2021 I jumped into a random altcoin that pumped 300% in one day. I thought I hit gold — until it dumped 90% in a few hours. I held, coped, and hoped it would recover.

It didn’t.

I lost 80% of that position because I didn’t set a stop-loss.

Lesson: A stop-loss isn’t weakness — it’s protection. Set them. Use them. Live by them.

Mistake 4: FOMOing Into Coins Without Research

In 2023 I bought a meme coin hyped by some TikTok guru. He said it would 100x. It dropped 95% in a week. I lost $2,000 because I bought the top based on noise on CMC, not facts.

If you’re buying based on hype, you’re not investing — you’re gambling.

Lesson: If you don’t understand what you’re buying, don’t buy it. Always check the project, the team, and the use case. Never follow hype blindly.

Mistake 5: Not Diversifying Your Strategy

At first, I only did spot trading. No staking, no stablecoins, no DeFi. When the market crashed, everything I held was bleeding. I had no hedge, no passive income — just pain.

Now I diversify:

• I use KuCoin for flexible trading.
• Coinbase for quick access and fiat ramps.
• Trezor for cold storage.
• And I stake some stablecoins to earn passive yield.

Lesson: Don’t just diversify coins. Diversify strategies. Create income streams. Be prepared for both bulls and bears.

Final Words

Crypto is brutal if you treat it like a game. I’ve made every mistake in this article — and paid for each one. But I learned. And now I’m sharing it with you.

We highly recommend you grab a Trezor wallet now and protect your wealth like the pros do. Ledger is another great option — check out our full comparison of Trezor vs Ledger to see which one fits you best.

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