Trading is one thing that we keep falling out of sometimes no matter the amount of care you implore in it, you make a single mistake and you may have big regret. Despite the paper trading which is same as practice, if we don't understand how to control our emotions, we may keep having difficulty in it. So as we are doing paper trading, we can still practice with small amount to build real trading emotions.
Paper trading or demo trading is sometimes not effective because consciously we know that we aren't going to lose real money so the decisions we make are less thought and the panic is not there during market is down. On the other hand when you start trading with real money, even if in small amounts, there is a certain tension mounting on us that can't be learned or experienced during demo trading.
As most traders say, you cannot buy an experience in the market and that's what matters in crypto trading. No matter if you have a million-dollar bankroll/capital, it will evaporate like nothing if you lack experience and the pressure handling ability.