Losing some money in the crypto world isn’t a big deal; what’s scary is being liquidated overnight, leaving no chance to recover!
A few days ago, I just reassured my fan Xiao Zhang. This kid entered the market with an $8000 capital, seeing SOL rise sharply at the beginning of the month, he went all in. As a result, this week SOL dropped from $210 to $130, and he was forcibly liquidated in three days, crying that he couldn't even secure his rent.
I fell into the same trap back in the day.
In 2019, I had $20,000 and followed the trend with Dogecoin being hot. When it went up a bit, I was reluctant to sell, and when it dropped, I hurried to average down. After two months of that, I was left with only $8000.
Until later, I calmed down and summarized, relying on three “capital safety locks,” I stabilized to $100,000 in four months last year. Even during the 30% market crash in March, I wasn’t liquidated.
First lock: Always keep half of your position.
No matter how tempting the opportunity is, don’t go all in. Just like last month when AI concept coins exploded, I only took a 30% position. Later, when the market corrected, I had bullets in hand and ended up buying at the low.
Opportunities in the crypto world are more plentiful than cow hairs; keeping your capital allows you to wait for the wind to come.
Second lock: Don’t be soft-hearted on profit-taking and stop-loss.
My current rule is a stop-loss of 15% and a profit-taking of 20%. When ETH rose to $2800 last year, many people said it could break $3000. I sold according to my discipline, and a few days later, it dropped to $2200, perfectly preserving my profits.
Newbies often greedily think “just a bit more,” but the money earned by luck will be given back based on skill.
Third lock: Never touch coins you don’t understand.
Last week, someone in the group promoted a new coin, claiming it could double. I checked the project’s white paper and found numerous loopholes, so I decisively blocked them.
My childhood friend fell into this trap; he bought a meme coin after hearing KOL hype about it, and it went to zero in a week.
Now the market is fluctuating, and every day someone is shouting “buy the dip” or “sell the top,” but I always keep my position at 60%.
Remember, if you can hold onto $10,000, you might earn $100,000;
If you can maintain discipline, the market will reward you.
There are many stories of getting rich quickly in this circle, but those who can last long have first learned to protect their capital.
If you want to avoid detours, feel free to reach out to me for a chat.
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