In the context of digital assets increasingly attracting the attention of global investors, the cryptocurrency market continues to see a growing number of new participants (F0) joining. However, alongside the allure of profits are numerous risks, especially for inexperienced investors who lack foundational knowledge and are easily influenced by market sentiment.

Many experts believe that most of the damage in the crypto market comes from basic but frequently repeated mistakes. Here are the 5 most common mistakes that novice investors (F0) often make.

1. Investing based on crowd psychology and the FOMO effect

The FOMO effect (Fear of Missing Out) is seen as characteristic of strong price increases in the crypto market. During periods of market excitement, the prices of many cryptocurrencies can rise by tens of percent within just a few hours, creating a sense of 'getting rich quickly' for new investors.

Mr. Nguyễn Đình H., an analyst of digital asset markets, commented:

“FOMO is the reason many investors buy at peaks and sell at lows. When the market corrects sharply and they lack experience in handling it, they often tend to panic sell to cut losses, leading to double losses.”

Experts believe that F0 needs to build a clear strategy before investing rather than chasing after groups and unverified information on social media.

2. Not understanding the product and the operational model of the project

An internal survey within a large crypto community in Vietnam showed that over 60% of F0 investors do not read whitepapers or research the development team before deciding to buy tokens. Investing based on rumors or shared 'tips' online makes investors susceptible to projects lacking transparency.

In fact, 2023-2024 recorded many cases of new projects launched but quickly disappeared or lacked real products, leading to the situation of 'liquidity withdrawal' (rug pull), leaving investors with nothing.

According to Mr. Trần Minh T., a blockchain consulting expert

“Crypto is not just an investment channel, but also a technology. If investors do not understand the technology behind it, they can hardly assess the risks.”

3. Ignoring risk management principles and capital management

Risk management is a crucial factor in investing but is often underestimated by F0. Many newcomers tend to allocate all their capital into a single coin or use high leverage in the futures market - where price fluctuations of just a few percent can be enough to liquidate an account.

Reports from a major exchange in Asia indicate:

  • Over 75% of accounts that were liquidated belong to investors who joined in less than 6 months.

  • The main reason: using too much leverage and not placing stop-loss orders.

Experts recommend that new investors should only use a small portion of their total assets for crypto trading while prioritizing the dollar-cost averaging (DCA) method and completely avoiding leverage trading if they lack experience.

4. Being subjective in account security and asset wallet storage

The significant difference between crypto assets and traditional assets lies in the fact that investors must take 100% responsibility for the security of their wallets and accounts.

Statistics from cybersecurity platforms show that in 2024:

  • There is over $1.7 billion worth of digital assets stolen through phishing, malware, and fake websites.

  • New users account for a large proportion due to a lack of skills in risk identification.

A common mistake is that F0 stores 'seed phrases' or 'private keys' in the form of screenshots or notes on mobile phones, which can be easily stolen when infected with malware. Additionally, logging into unverified links or granting wallet permissions arbitrarily is also a cause of asset loss.

Mr. Lê Quốc N., a cybersecurity expert in Ho Chi Minh City, said:

“Hackers often focus on newcomers because they lack security experience. Just exposing one line of 'seed phrase', all assets in the wallet can be drained within minutes.”

5. Believing in high return commitments or unauthorized fundraising models

Exploiting the high interest in crypto and the desire for quick profits, many opaque investment schemes have emerged in the form of:

  • fixed profit commitment

  • rewarding through a multi-level network

  • “trading trust” with self-proclaimed experts

  • projects that have not been verified but are heavily promoted.

Most of these models have no legal basis, are not transparent about cash flow, and often collapse when there are no new participants. At that point, the losses primarily fall on the group of F0 investors.

Authorities have repeatedly warned: any investment channel that promises high returns and has no risks carries the potential for fraud.

Conclusion: Knowledge and discipline are the 'shield' protecting new investors

Crypto is still considered a field with high potential, but the high volatility makes F0 investors easily face risks if they are unprepared. Understanding the product, managing capital properly, ensuring account safety, and steering clear of unrealistic profit commitments will significantly help investors minimize the risk of losses.

In the context of a constantly changing market, experts recommend that investors approach crypto with a cautious mindset, prioritizing the accumulation of knowledge and experience step by step, rather than expecting quick profits.
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