Report: Over 84% of new retail cryptocurrency traders incur losses within their initial year, according to research findings
Survey Reveals Common Mistakes and Risky Moves among Crypto Beginners
A recent survey conducted on August 8, 2025, with 1,005 retail crypto traders has shed light on the common mistakes and risky moves that cause beginners to lose their money in the first year of trading.
The survey findings reveal that 84% of traders lose money and fail within their first year, with 58% of new traders losing almost all of their money in that first year. One in three traders quits within the first six months.
Interestingly, the results presented in the survey reflect participant responses, not the surveyors' own views. The survey was designed to gather insights from individuals who had traded cryptocurrency in their first year.
Among the most common mistakes beginners make are poor research (55%) and FOMO (44%). New traders often jump into trading without fully understanding what cryptocurrencies are and their risks, leading to ill-informed decisions. They also tend to follow the crowd and invest in coins based on hype or speculation, rather than thorough analysis.
Another area of concern is risk management. Over 85% of new traders fail to consistently use tools like stop-loss or take-profit orders, leaving their capital exposed to sudden market swings. This lack of risk management contributes to 66% of traders who trade often ending up with bigger losses.
Day trading, while popular, is the most dangerous approach for beginners, with 54% of new traders choosing it. This approach requires a deep understanding of market dynamics and a high tolerance for risk, both of which are often lacking among new traders.
However, the survey also highlights that many traders continue trading despite losses because they believe in the long-term future of crypto and see it as a way to earn extra income outside their main job. Nearly half of traders become more cautious in their approach after experiencing losses, suggesting that learning from mistakes can lead to improved trading strategies.
The survey results should not be interpreted as financial or investment advice. Instead, they provide practical insights to help new traders make smarter trading decisions. For long-term success, it's crucial to understand the risks involved, manage emotional decisions, and secure assets effectively.
For instance, thorough personal research and understanding of what cryptocurrencies are and their risks before investing is crucial. Avoiding blind investments in hype or speculative coins, managing emotional decisions such as avoiding panic selling or impulsive buying, maintaining discipline, and having a clear strategy are also essential. Safeguarding assets securely, for example by using hardware wallets, can prevent losses due to hacks or fraud. Understanding market volatility and regulatory risks comprehensively is also crucial.
In conclusion, the survey highlights the most common mistakes, risky moves, and poor habits that cause beginners to lose their money. By learning from these findings, new traders can improve their chances of long-term success in the crypto market.
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