Don't be a 'leek' in the crypto world! Teach you to avoid 90% of the traps

The crypto market has never been about 'gambling on size', but rather surviving through understanding.

In the October liquidation wave of $19 billion, 1.7 million traders were liquidated, with 80% being novices caught in the 'double myth' of perpetual contracts.

I've been in the market for five years and have avoided pitfalls through four iron rules, sharing them with you.

1. Don't randomly go all in—your position is your 'safety cushion'.

Data from BitMEX shows that the probability of liquidation for fully leveraged traders is 11 times that of those who spread their risk.

Currently, BTC contracts have a total holding of over $60.6 billion, and with volatility, a mere 3% can lead to forced liquidation. Keep single coin positions below 20% of margin to ensure you have bullets left for a comeback.

2. Go with the trend, don't argue with the market.

The correlation between BTC and ETH has dropped to 0.65, with each showing independent movements; stop relying on 'bottom fishing' to bet on reversals.

If the trend hasn't broken the 10-day moving average, hold on; a pullback is an opportunity to average down, as market inertia is always more reliable than your judgment.

3. Take profit and stop loss are your 'moat'.

Bloomberg data shows that the loss rate for novices in their first year is 79%, all due to not setting risk controls.

Iron rule to remember: single trade losses should not exceed 5%, take out half when profits reach 10%, maintain a win rate of over 50%, and capital will naturally compound.

4. Don’t be a 'trading maniac', being idle can earn you more.

High-frequency traders have a loss rate of 92%, while the profit probability for planning 1-2 trades per day is high at 47%.

The market is always there; there's no need to stare at the K-line to the point of neglecting meals.

In summary: don’t go all in, follow the trend, control risk, and trade less.

Now Bitcoin ETF has seen inflows of $250 million, institutions are taking a steady approach, and we retail investors should understand even better.

Surviving is the prerequisite to enjoying the dividends.

Follow me for practical tips that can be applied, see you in the Binance chat room.