Study Finds 84% Retail Crypto Traders Lose Money First Year

Recent data and expert opinions highlight the volatile and risky nature of cryptocurrency investing, especially for new traders. According to a survey conducted in August 2025, 84% of new crypto traders lose money within their first year, with 58% losing almost all their initial investment, often due to poor habits and risky moves. Despite these challenges, some investors have achieved extraordinary gains, such as a trader who turned $125,000 into $43 million by going long on Ethereum, though subsequent market downturns significantly reduced profits. Industry voices like those from Altcoin Daily emphasize the importance of holding at least 0.01 Bitcoin, suggesting it as a benchmark of investment success and a key to financial freedom, given Bitcoin's strong past performance and expected future value. Meanwhile, retail traders are showing skepticism towards companies issuing new equity to fund crypto purchases, often selling off shares and causing stock price drops. These developments underscore both the potential and the pitfalls of crypto investments, urging caution and strategic planning among investors.