A few days ago, I received a private message from a fan, and after reading it, my heart skipped a beat. This guy's story is simply a classic epitome of a contract player in the crypto world: it starts like a feel-good story and ends like a horror film.
Chapter 1: The Illusion of Destiny
He entered the market with two thousand dollars, intending to 'test the waters,' but ended up with his account skyrocketing to sixty thousand in five days. At that time, he walked with confidence, thinking the crypto world was an ATM, even tasting success in bottled water.
I am too familiar with this illusion—profits under high leverage are essentially 'borrowed luck.' The market's ups and downs are already crazy, and with leverage, the rewards and risks feel like riding a rocket. However, novices often mistakenly take the money the market gives as their own ability, not realizing that every bit of 'quick money' in the contract market comes with a price tag attached.
Chapter Two: Nightmare Start: Full Margin, Full Leverage, Toughing It Out
After making sixty thousand, his operations completely transformed: all-in betting, full leverage, stubbornly holding losses. What was the result? Sixty thousand shrank all the way down, and in the end, the account only had a few hundred left.
This type of operation is typical of a gambler's mentality: 'When you lose, you want to break even; when you win, you want to double your bet.' But the crypto world is not a casino, and leverage is not a weapon—it is a risk amplifier. Under 5x leverage, a 10% reverse price movement can zero out your margin; under 30x leverage, a 3% movement is enough to liquidate. But once someone is high on this, they can't care about these numbers, and all that remains in their head is the luck of 'one more bet.'
Chapter Three: The 'Addiction' of Contracts: Physiological Dependence Behind Quick Money
He described that period: waking up to look at candlesticks, dreaming of liquidations before sleep, and eating like chewing wax. This is not an exaggeration, but an erosion of the psyche caused by contract trading.
Crypto volatility far exceeds that of the stock market, possibly completing a year's worth of fluctuations in just a few minutes. This kind of stimulation causes the brain to secrete dopamine, creating a gambling-like sense of dependence. But the problem is, high returns always come with high risks. For example, in early December this year, Bitcoin crashed, with over 190,000 liquidations in a single day, totaling as much as $553 million. Those who thought 'holding on a bit longer will bring it back' mostly became just another number in the liquidation statistics.
Chapter Four: My Survival Rules: Against Human Nature, Control Risk
After years of struggle in the crypto world, I've seen too many 'geniuses' go to zero and 'fools' survive. Summarizing, surviving is a thousand times more important than making quick money. Here are a few of my iron rules:
Leverage is a tool, not a lifeline
I usually only use 1-3x leverage, and only use 5x in extreme situations. High leverage seems to earn quickly, but in reality, the margin for error is extremely low—one black swan event can wipe out nine profits.
Stop loss is a 'seatbelt', not an option
Single losses must not exceed 1% of the principal. For example, if the account is 100,000, losing 1,000 must trigger a stop loss. Don't be reluctant to 'cut losses'; liquidation is the true despair.
Position management determines longevity
Single trades must not exceed 10% of the principal, and total positions must not exceed 30%. Don't put all your eggs in one basket, especially not at the edge of a cliff.
Refuse 'faith-based trading', only look at trends
Don't go against the trend, and don't blindly believe that 'holding positions will bring back losses.' The market won't soften just because you are losing money; recognizing mistakes in time is closer to making a profit than stubbornly holding on.
Chapter Five: Words for All Contract Players
In this line of work, smart people earn money through discipline, while gamblers lose due to emotional debts. If you are now:
When profitable, feeling like a god; when losing, panicking to the point of sleeplessness;
Always thinking about 'all in for a comeback';
The first reaction to a loss is 'add margin to average down'...
Stop now, hurry up and stop. You are not investing, you are gambling with your life.
Those who can truly survive in the contract market rely not on myths of exorbitant profits, but on a respect for risk. Remember: a 50% drop in account value requires a 100% increase to break even, and a single liquidation could mean a permanent loss of the chance to turn things around.
The last piece of sincere advice:
The crypto world is not lacking in opportunities, but in those who can live to see them. If you can't control your greed and fear, it's better to leave early—living a grounded life is much better than being in the hell of candlesticks. Follow Xiang Ge to learn more first-hand information and precise points on crypto knowledge, becoming your guide in the crypto world; learning is your greatest wealth!
