According to Compounding Quality (@QCompounding), Charlie Munger’s insights on the Psychology of Human Misjudgement highlight how even experienced investors can fall victim to cognitive biases, often leading to poor trading decisions. For cryptocurrency traders, understanding these psychological pitfalls—such as confirmation bias, overconfidence, and incentive-caused bias—can improve risk management and decision-making processes, especially in volatile digital asset markets. Munger emphasizes the importance of developing rational checklists and disciplined frameworks to minimize costly errors, a strategy that aligns with the needs of crypto investors facing rapid price swings and hype cycles (source: Compounding Quality on Twitter, June 2, 2025).