10 crypto trading mistakes beginners make (and how to avoid them)

By the Ezetrad team · Updated 13 November 2026 · 2 min read

Most people who trade crypto short term lose money. The reasons are surprisingly similar, and most can be avoided with a few habits.

1. Trading without a stop loss. Decide where you get out before you get in. See our stop loss guide.
2. Risking too much on one trade. A few losses should never wipe out an account. Size each trade from a fixed risk, such as 1%; see position sizing.
3. Using high leverage. At 20× leverage, a 5% move against you can wipe out the whole position. Most beginners who use high leverage lose money.
4. Chasing pumps. Buying after a coin has already jumped 30% often means buying from the people who got in earlier.
5. Paying for "signals". Groups promising sure wins are often selling the same coins to their members. No one can reliably predict short-term prices.
6. Ignoring fees. Small fees on frequent trades add up quickly, especially with market orders on small coins with wide spreads.
7. Revenge trading. Jumping into a new trade straight after a loss, to win it back, usually leads to a bigger loss.
8. Falling for scams. Fake exchanges, fake support staff, "recovery services" and guaranteed-return schemes are everywhere. Never share your recovery phrase.
9. Keeping everything on an exchange. Exchanges can be hacked or fail. Many people keep only what they trade there.
10. Never checking the odds. Before trading an idea, test how often a similar move actually worked out in the past. It is free on our chart page.

A simple routine

Pick a coin, write down your idea, set a stop and a target, check the simulated odds and the break-even line, size the position, and only then decide. If the odds look like a coin flip, that is useful information too.

This guide is educational and is not financial advice.

Keep learning

• How to read candlestick charts
• What is RSI?
• Stop loss and take profit
• Position sizing and the 1% rule