The '90% Lose Money' Crypto Statistic? Experienced Investors Say It's Misleading — Here's What They Do Instead

nickthomas2@benzinga.com

Sat, Jun 28, 2025, 6:00 PM 5 min read

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A viral Reddit discussion has pulled back the curtain on one of cryptocurrency’s most persistent narratives: that 90% of investors lose money. What started as one user’s eight-year hesitation to enter crypto has evolved into a comprehensive analysis of why most people fail—and how a select few consistently profit.

The Reddit community identified several key behavioral patterns that drive the majority of crypto losses:

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Emotional Trading Dominates Decision-Making: The most cited reason for losses? Pure emotion. Users consistently described a pattern of FOMO-driven purchases at market peaks followed by panic selling during crashes—the classic “buy high, sell low” mistake that plagues retail investors across all asset classes.

The Sh*tcoin Trap: A significant portion of losses stems from investments in what the community calls “shitcoins” or “meme coins”—speculative altcoins with little fundamental value. These investments are described as closer to gambling than investing, with many projects being outright scams or pump-and-dump schemes.

Trading vs. Investing Confusion: The discussion reveals a crucial distinction: those who lose money are typically “traders” attempting to time markets through frequent buying and selling, while those who profit are “investors” or “savers” who hold for extended periods.

Perhaps the most striking insight from the discussion is what users call the “four-year guarantee.” Multiple commenters assert that anyone who has purchased Bitcoin and held it for four years or more has “always made money”—regardless of their initial entry point.

The Math Behind Long-Term Holdings One user claimed that even with the worst possible timing, Bitcoin’s minimum return over any four-year period has been 25% annually. While this figure requires verification, it underscores the community’s confidence in Bitcoin’s long-term trajectory.

Market Cycles and Patience The Bitcoin market operates in roughly four-year cycles, alternating between bull and bear markets. Successful investors, according to the discussion, understand these cycles and resist the urge to sell during temporary downturns.