"Mr. Wang, just sell the house, otherwise we really can't do anything anymore." In the autumn of 2016, the bank's collection personnel sat in my living room with a cold tone. I looked at the smiling faces of my wife and children in the family portrait on the wall and felt especially useless for the first time. At that time, I absolutely could not imagine that 8 years later I would be in my own studio, explaining the importance of 'risk control' to a group of investors. The reversal of life often begins with understanding awe.
I used to be in the furniture business. In 2012, I opened a store in a furniture city. Due to my good vision and attentive service, the business grew larger and larger. Later, I opened two more branches and bought two sets of school district houses. However, in 2015, I followed the trend and expanded by opening a large furniture market in the suburbs, investing all my savings and taking a loan of 2000000. As a result, due to the remote location, the market's business was bleak, and it went bankrupt in less than a year. I not only lost all my assets but also fell into a huge debt.
The house was seized by the bank, and I moved with my wife and children to my father-in-law's old house, living every day in guilt and anxiety. Once, I saw an article online about cryptocurrency, saying that someone made money from it, and I felt like I had grasped a lifeline, so I quickly searched for information everywhere. But the people around me advised me, 'Don't be fooled,' saying that this thing is too risky.
I hesitated for a long time, but in the end, I took the only 8,000 yuan I had and invested it. At first, I did make some money, and I was particularly excited, thinking I would turn things around immediately, so I started to increase my investment and even borrowed high-interest loans. But unexpectedly, in September 2017, the market suddenly crashed, and the assets I held lost 60% overnight. The high-interest loans were also due, and the debt collectors were at my father-in-law's door every day. I had no choice but to run away to another city to hide from my debts.
During that time, I was working odd jobs in a factory in another city, working 12 hours a day. The money I earned was just enough to get by, and I used all of it to pay the interest on high-interest loans. In the quiet of the night, I often reflected: why did I end up in this situation? Later, I realized it wasn't that cryptocurrency was bad, but that I was too greedy and didn't understand risk control at all.
Since then, I began to focus on studying cryptocurrency, placing emphasis on 'risk control.' I set three iron rules for myself: First, never use borrowed money for trading, only use my idle funds; second, the position for each purchase must not exceed 10% of the total funds; third, if losses exceed 20%, I will immediately cut my losses and exit.
During the bear market in 2018, I adhered to these three iron rules. Although I still lost money, it was not catastrophic. When the market warmed up in 2020, I started to gradually buy quality assets, strictly following my own rules, taking profits promptly after making gains, and cutting losses immediately when I incurred losses. By the peak of the bull market in 2021, my assets had surpassed ten million, and I had completely paid off all my debts.
Now I often tell those around me that in the crypto space, profits are given by the market, but risks are something you can control yourself. Many people only see how much money others have made, but do not see the risk control systems behind them. If you want to make money in the crypto space, don't think about how to profit first; learn how to control risks first.
Follow me@Square-Creator-0a44f19a1d7d9 #加密市场反弹 $BTC
