According to Adrian Newman (@adriannewman21), traders in the crypto market often get burned by two major mistakes: taking highly leveraged short positions based on fundamental skepticism during bullish trends, such as shorting Ethereum when it is rallying, and refusing to cut losses by holding onto underperforming assets in bearish markets. These behaviors highlight the importance of adapting trading strategies to current market sentiment and trend direction for both risk management and profit optimization (source: Twitter, May 11, 2025). Understanding these pitfalls is critical for crypto traders aiming to avoid liquidation risks and maximize returns during volatile market cycles.

According to @AltcoinGordon, Faze Banks and Orangie advised Adin Ross to sell all of his Ethereum (ETH) for Bitcoin (BTC) at the exact bottom of the ETH/BTC trading pair. This trade resulted in a significant opportunity cost as ETH/BTC subsequently rebounded, highlighting the risks of emotional or influencer-driven trading decisions. For traders, this case underscores the importance of timing and independent analysis when executing large cryptocurrency swaps, as following high-visibility recommendations can lead to substantial losses if not corroborated by technical indicators or market data (Source: @AltcoinGordon on Twitter, May 11, 2025).

According to AltcoinGordon on Twitter, most people lose money in crypto trading because they follow crowd psychology and herd behavior, leading to poor entry and exit points and susceptibility to market manipulation (source: AltcoinGordon, Twitter, May 4, 2025). This insight highlights the importance for traders to develop independent strategies, use risk management tools, and avoid emotional decision-making to improve their chances of success in volatile cryptocurrency markets.