Ever notice how getting liquidated stings way harder than the dopamine hit from a winning trade? That's not just your imagination—psychological research shows the pain from losses hits roughly twice as hard as the pleasure from equivalent gains. In crypto markets, this asymmetry matters big time. When you're down 20%, the emotional weight feels like you've actually lost twice what a 20% pump would excite you. This is why diamond hands are rare and panic selling is common. The fear response kicks in faster than greed can think rationally. Understanding this bias helps traders avoid impulsive decisions during downturns. Instead of riding the wave of loss aversion, catching yourself when emotions spike gives you an edge—literally the difference between a recovered position and deeper drawdowns.