According to Compounding Quality on Twitter, Charlie Munger’s decades-long analysis of why intelligent people make poor decisions highlights 24 standard causes of human misjudgement. For cryptocurrency traders, these cognitive biases—such as incentive-caused bias and social proof tendency—can lead to costly mistakes in fast-moving markets (source: @QCompounding, May 20, 2025). By recognizing these psychological pitfalls, traders can improve risk management, avoid herd mentality, and make more rational decisions when navigating volatile assets like Bitcoin and Ethereum. This behavioral insight is increasingly crucial as crypto markets grow more competitive and sentiment-driven, influencing everything from short-term trades to long-term investment strategies.