Like you, when I first entered the crypto space, I also paid a lot of 'tuition'. What hurts me the most is not losing money, but watching new users repeatedly fall into the same traps: clearly there are safer paths, yet they choose to follow their emotions. The five methods I'm discussing today are not filled with technical jargon; they are blood and tears experiences I gained from losses.
1. Be cautious of 'influencers' recommendations; the truth might shock you.
Newbies are most likely to stumble on 'big shots' recommendations. Last year, I had a student who believed a certain KOL when they said a new coin was 'about to soar', and without hesitation, transferred 20000U in. What happened? That day it plummeted by 25%, and the so-called 'insider information' was nothing more than paid promotion by the project team.
My clumsy method:
When encountering a 'sure-win' project, first check the 3Ts: Technology - is there a real application? Tokenomics - is the distribution transparent? Team - can it be verified with real names?
No matter how gorgeous the white paper is, it's better to look at on-chain data: for example, net inflow to the exchange (are whales running away?), address activity.
Remember this: those who truly make money are too busy to shout everywhere; internet celebrities might earn $100,000 in advertising fees, but you are losing your own capital.
2. The stop-loss line is not just for show; it's your 'lifeline'.
Newbies often fantasize that 'after a drop, there will always be a rebound', but I have seen too many people go from shallow losses to deep losses, ultimately ending up at zero. An old friend in the circle held on to 95,000 USDT until it was only a few hundred USDT because he didn't set stop-losses.
My mechanical execution method:
A single loss exceeding 10% must be cut (don't feel sorry, losing the principal hurts more).
Use the stop-loss limit order function of the exchange, set your orders and go to sleep, don't 'fall in love' with the market.
Mindset adjustment: do not operate within 24 hours of a loss to avoid revenge trading.
3. Position management: do not treat altcoins as 'lifelines'.
Newbies often envy the hundredfold myth of altcoins, forgetting that high returns come with high risks. Someone once bet 50,000 USDT on a 'revolutionary project', only to see the team run away and their assets go to zero.
My split warehouse principle:
Main position (over 60%) in BTC, ETH and other mainstream coins, with a single altcoin not exceeding 10% of total funds.
New coins are like startups, 90% will fail, only invest in those with actual products (MVP), do not invest in 'pie-in-the-sky' projects.
Investing spare money, with total investment not exceeding 10% of liquid assets, losing it does not affect life.
4. Adding positions is not a cure-all; act only when you see the right signals.
Adding positions every time there is a drop is a fatal habit for newbies, it can lead to getting trapped more and more. The only time to really add positions is when the trend is upward and stabilizing with decreasing volume.
My conditions for adding positions:
If the price of coins drops with increased volume (high selling pressure) - do not add.
If there are no new lows for three consecutive days, and the trading volume moderately increases - use profits to add positions, do not touch the principal.
For example, if ETH drops from 2000 to 1800, don't rush; wait for it to stabilize around 1800 before considering to add in batches.
5. Cash out safely: don't let the money you earned get stuck in the bank.
No matter how much you earn in crypto, if you can't cash out, it's just paper wealth. I have helped people handle cases of frozen cards, just because the buyer's transaction flow was unclear.
My cash-out rules:
Only use official OTC platforms, choosing merchants with high trading volume and good credit ratings.
Request the other party to provide screenshots of transaction history for the past three months, do not accept transfers from unknown individuals.
Transfer large amounts of funds to a hardware wallet, leaving only short-term trading money on the exchange.
Last reminder about mindset.
The scariest thing in the crypto world is not losing money, but the anxious mindset of wanting to recover losses. Data shows that 92% of high-frequency traders lose money, while low-frequency traders have higher returns. The goal for newbies is not to 'double' but to survive. As long as the principal is intact, there will always be opportunities in a bull market.
My daily habit: write trading logs weekly, recording 'which operations were emotional decisions.' Over time, you will find that restraint makes more money than impulsiveness. - Let's encourage each other.
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