CEOs Warn Retail Traders: Don't Get Rekt by Chasing Hype

Surviving a crypto bull market can be challenging for retail investors, with up to 93% losing money. This is due in part to their tendency to buy at the peak of hype and hold onto collapsing tokens in hopes of a rebound.

During a panel at Coinfest Asia in Bali, regional exchange CEOs from the Philippines, India, and Indonesia shared their insights on how retail buyers can avoid getting wiped out.

Gabriel Rey, founder of Indonesian exchange TRIV, noted that there will be no 'next Bitcoin' and that the money flow into Bitcoin is largely institutional. He also emphasized the importance of assessing liquidity before entering a trade, advising traders to check order book depth and avoid making positions where they cannot exit.

Nichel Gaba, CEO of Philippine exchange PDAX, observed that retail traders have matured since previous market cycles but still fall into the trap of assuming market cycles no longer apply. He emphasized the need for disciplined execution and recommended that investors take at least 50% of their capital off the table once a target price is met.

Ashish Singhal, CEO of Indian exchange CoinSwitch, revealed that on their platform, 93% of retail traders lose money while only 7% remain profitable. He attributed this to the fact that many investors fail to use stop-loss rules correctly and hold onto losing positions in hopes of a rebound.