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Gracy Chen, the Chief Executive Officer at the well-known crypto exchange Bitget, has recently discussed the increasing investment losses. Based on her experience throughout the past year, where she incurred a 15.8% loss on altcoins, Gracy Chen pointed out 3 chief reasons responsible for the heightened crypto losses. On her official X account, Chen provided knowledgeable insights for the crypto investors.

Today, I analyzed my secondary token investments and learned a lot. Almost a year ago, I bought some secondary market small tokens, including meme, AI, depin and gamefi. A year later, the return of this portfolio is -15.8%. Although the loss is not huge, given this period of time…

— Gracy Chen @Bitget (@GracyBitget) January 10, 2025

Gracy Chen of Bitget Faces 15.8% Dip in Return on Small Tokens

Gracy Chen pointed out that irrespective of being a veteran crypto professional, she saw a -15.8% return on small tokens. Her small-token portfolio included assets dealing with AI, GameFi, meme, and decentralized physical infrastructure networks. This loss fades in comparison with Bitcoin’s massive rally at the same time as it surged from $40,000+ to above $95,000. While discussing her choices, she indicated that the losses resulted in 3 critical lessons for her.

Investing in Small Tokens Results in Losses for Long-Term Investors

As per Gracy Chen, one of the prominent reasons behind the losses reportedly accounted for speculation on tokens with small capitalization. She asserted that the long-term investment is not suitable for small-cap, highly speculative tokens. These tokens demand a constant eye on the market. On the other hand, the other tokens such as Bitcoin present a relatively stable position with a low-risk profile. Thus, Chen recommends these assets for long-term investors.

Small-Cap Tokens Need Rapid Decision-Making for Effective Gains

In addition to this, Chen labeled lack of precise time as another reason behind enormous crypto losses. She mentioned that successful trades are marked by rapid transfers following the acquisition. Hence, in the considerably volatile crypto realm, investors require rapid decision-making to leverage significant price fluctuations.

Bitget CEO Advises Investors to Avoid Selling Assets on News

According to Bitget’s CEO, the 3rd prominent reason for huge investment losses is selling assets on the news. She added that market responses to news often pave the way for provisional price spikes, providing a perfect exit spot for investors. Thus, Gracy Chen implied that the crypto investors should make investment strategies in line with their personal objectives and broader market conditions.