There is a recognized consensus in the crypto world: no one can skip losses and go straight to profits. The early losses are essentially the 'tuition fee' paid to the market.
However, many newcomers pay this tuition fee without clarity, mainly due to falling into two fatal misconceptions: first, they blindly trust 'insider information' and 'double promises,' entering the market with full positions impulsively, completely ignoring market volatility and turning investments into gambling; second, they have no risk awareness, neither setting stop losses nor controlling position sizes, resulting in a significant short-term reduction in their accounts, ultimately falling into a passive situation where recovery becomes difficult.
In fact, avoiding risks is not that complicated; mastering these three core strategies is enough:
The first is position management, ensuring a 'safety cushion.'
You must keep 30%-50% of cash on hand, and the position in a single cryptocurrency must not exceed 20% of total funds. This can avoid the volatility of a single asset directly impacting the safety of the entire account, giving you some room for maneuver even if you hit a mine.
The second is strict stop-loss measures; do not let small losses turn into big losses.
Set a stop-loss line based on your risk tolerance, for example, 5%-10%. Once the stop-loss signal is triggered, you must execute it decisively. Do not hold onto the illusion of 'waiting for a rebound'; the more you hold, the more you lose.
The third is continuous review, learning lessons from losses.
Every losing trade should record the core reasons: was it emotional interference in decision-making, a technical signal judgment error, or a missed systemic risk? Only by continuously optimizing trading logic through reviews can you spend your tuition wisely.
It must be clear: there is no such thing as 'getting rich overnight' in the crypto world. The key to stable profits has never been chasing high returns, but preserving the principal.
Building a sustainable trading system is much more reliable than searching for 'hundredfold coins' everywhere.
I have compiled 8 core principles to avoid pitfalls in the crypto world and 4 stop-loss techniques. Friends who want to take fewer detours and pay less tuition can follow me at @阿二说币 . I will continue to share practical trading tips to help you progress steadily in the crypto world.