bias library · 8 articles
The eight traps that drive crypto trading losses.
Each one is named, sourced to its academic origin, and shown in the specific shape it takes in crypto. Read the one that sounds most like you first.
Loss aversion
A loss of $100 hurts roughly twice as much as a gain of $100 feels good.
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Disposition effect
You close winners too early and hold losers too long.
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Overconfidence
You systematically overestimate how accurate your forecasts are.
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Confirmation bias
You seek evidence that supports your position and discount what contradicts it.
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Anchoring
You over-weight the first number you saw — usually your entry price or an all-time high.
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Recency bias
You weight recent events much more than their statistical significance warrants.
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Herding / FOMO
You follow the crowd because evolution taught you safety in numbers.
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Endowment effect
You value what you already own more than what you would pay to acquire it.
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