That day, the K-line on the screen crashed down like a waterfall, and my palms were soaked in cold sweat.
In the summer of 2018, in a stuffy rental room in Shanghai, I watched my account drop from a floating profit of 4 million to only 700,000 in three days. At that moment, the dream of financial freedom was instantly shattered, and all that was left in the room was the hum of the CPU fan and my heavy heartbeat.
At that time, I thought I had figured out the market rules, and with leverage and courage, I was invincible. Reality, however, gave me a resounding slap in the face: the market never gives you a heads-up before it offers you a sweet deal; when it takes it back, it certainly doesn't notify you.
After ten years of ups and downs in the crypto world, I crawled out from the abyss of losses, relying on three iron rules, rolling 700,000 back to ten million. These lessons learned with real money, I share with you today without reservation.
① Leverage is a knife, not a ladder.
I still remember the feeling of using leverage for the first time; with 15x leverage, I made 400,000 in one day, feeling like a trading genius. But this thrill was quickly shattered by reality—when the market suddenly turned, high leverage was like a double-edged sword, instantly stabbing back at me.
Leverage itself is not the problem; the problem lies in how we use it. In this high-risk cryptocurrency market, leveraged traders often become 'the harvested.' I now strictly follow two rules: first, the overall leverage ratio does not exceed 2x, and second, the position in a single coin does not exceed 4% of total capital.
This is not cowardice, but trading survival through risk control. The first principle of survival in the crypto world is not how much you earn, but how long you survive.
Truly smart traders know that sometimes the biggest advantage is knowing when not to trade.
② Mainstream coins are the ship; altcoins are the waves.
Once, I heavily invested in a so-called 'hundredfold potential' altcoin, putting in 250,000, with the highest unrealized profit of 1.5 million but no profit-taking. In the end, the project team ran away, and the funds were all wiped out.
This lesson taught me that we often overestimate our ability to discover hundredfold coins while underestimating the steady power of mainstream coins.
Now, 80% of my funds are allocated to Bitcoin and Ethereum, with only 20% for trying potential dark horse projects.
Many people think Bitcoin's price is high, with limited room for growth, and prefer lower-priced altcoins, which is a common mistake for beginners.
In the cryptocurrency market, narrative often matters more than fundamentals.
Bitcoin and Ethereum possess the strongest community consensus and narrative foundation, which no altcoin can match. The volatility of altcoins is indeed stimulating, but true wealth is accumulated through the steady growth of mainstream coins.
③ Stop-loss is the bottom line, not an option.
Once, I watched a coin drop 12% without cutting losses, instead frantically adding to my position, resulting in losing a down payment for a house. Emotional trading is an invisible killer of accounts.
Now, I have preset hard stop-loss lines for each of my trades, and once reached, I exit immediately without hesitation. A drawdown of more than 7% likely means your judgment is wrong—admitting mistakes is not scary; what's scary is letting the mistake magnify endlessly.
In trading, emotions are often the biggest enemy.
When the market is highly volatile, staying calm is more important than any technical analysis. I have a simple rule: if you feel overly excited or fearful about a position, first reduce your position by half. This not only lowers risk but also helps you regain rational judgment.
Surviving is essential to see the next bull market.
After three years in the crypto world, my biggest realization is that successful investing is not about one brilliant victory, but about countless times avoiding fatal mistakes.
Many people enter this market with the mindset of getting rich quickly, but the real winners are those who are patient, disciplined long-term investors.
Wealth accumulation takes time; it is a process of continuous learning and growth.
Your goal should not be 'retirement', but to achieve true freedom—waking up every day to do what you want, creating value with interesting people, and having enough time to spend with family and friends.
Now, my trading interface is simple and clear: leverage locked at 2x, positions concentrated in several mainstream coins, with stop-loss set for each trade. This is not cowardice, but a respect for the market after experiencing the storm.
One day in the crypto world is like a year in the human world. In this highly volatile market, surviving is the hard truth. Remember, the next bull market will always come, but only by protecting your principal can you wait for that day.
The cruel truth of the risk market is that most people's profits will eventually go back to the market; only those who survive can take away profits.
To all of you striving in the crypto world, let’s encourage each other. Follow Ake to learn more firsthand information and crypto knowledge, becoming your navigator in the crypto world; learning is your greatest wealth!#加密市场反弹 #美联储降息 $ETH
