Seeing someone in the group share a screenshot of their liquidation, I quietly turned off my phone. Eight years ago, I was just like that.
“Brother, hold steady, this coin is definitely going to double!” Every time I hear something like this, I can't help but think back to that night in 2017. At that time, I naively trusted a certain 'big shot's' call, and lost three months' salary in one night. At that moment, I truly understood what it meant by 'one day in the crypto world is a year in the human world.'
Since entering the industry in 2017, I have witnessed the cryptocurrency market move from the fringes to the mainstream, and have seen countless people become rich and go bankrupt. What strikes me the most is not the ups and downs of the market, but the consistent nature of humanity in the face of money: greed when prices rise, fear when prices fall, a cycle that repeats.
I. Lessons learned from three liquidations
I experienced my first liquidation in early 2018. At that time, Bitcoin had just fallen from its historical high, and I firmly believed this was just a 'healthy correction', so I went all in and even leveraged. The result, as everyone knows, was that Bitcoin kept falling, and my account quickly went to zero.
At that time, an old trader told me: 'In this market, surviving is more important than making money.' Unfortunately, I didn’t understand it then.
The second liquidation was even more painful. On March 12, 2020, the pandemic triggered global panic, and Bitcoin halved in a single day. I thought it had hit the bottom, continued to increase my position and go long, only to be liquidated again. At that moment, I realized how pale the so-called 'technical analysis' is in the face of an extreme market.
The third liquidation is the one I regret the most. On May 19, 2021, China tightened regulations, and the market crashed. Although I set stop losses, network congestion prevented trading, and I could only watch my assets evaporate.
After these three lessons, I finally understood a principle: in this market, controlling emotions is more important than analyzing charts. This is also why 79% of beginners lose money and exit in the first year.
II. My five anti-human nature rules
1. Position management is the cornerstone of survival
The most common mistake beginners make is to enter the market all at once. My current principle is: no single trade should exceed 5% of total funds, and total position should not exceed 30%.
Last year, when Bitcoin fell to $30,000, there was panic in the market. I built my position in batches, adding once every 10% drop. Although it seemed foolish at the time, when the rebound came, I not only broke even but also made a profit. Most of those who went all in ended up cutting losses at the lowest point.
2. Learn to coexist with sideways markets
The cryptocurrency market spends 85% of its time in consolidation. Many people fail due to impatience, always trying to catch every fluctuation.
I have a habit: when uncertain about the direction, I'd rather stay out of the market and wait. Last year, a mainstream coin traded sideways in the $2000-$2200 range for nearly a month, while people in the group chased after prices, incurring significant transaction fees. I waited for a clear breakout signal before entering, easily earning 20% returns.
3. Taking profits requires more courage than cutting losses
The hardest thing for retail investors to overcome is greed. Once, a token I held rose 120% in a week, and everyone in the group was shouting about 'getting to $1,000', but I took profits in three batches. The next day, the project announced bad news, and the price halved.
Remember: you will never earn the last penny. Set clear profit-taking points and decisively exit after reaching your goal.
4. Look for opportunities within bearish candles
Public sentiment is always a contrarian indicator: crazy during bullish candles, panic during bearish candles. My current strategy is: buy in batches after 3-5 consecutive days of decline, and sell in batches during consecutive rises.
Last month, during market panic, I bought several mainstream coins that were mistakenly sold off. Although I was temporarily stuck, all of them turned profitable two weeks later. Most of those who chased the price ended up stuck at the peak.
5. Avoid emotional decision-making
I set a strict rule for myself: do not trade within 24 hours after a loss. Once, I lost 10% in a single day and desperately wanted to recover immediately, but I forced myself to leave the computer. Looking back the next day, I was glad I didn’t act impulsively.
III. Essential thoughts on the crypto market
After eight years of experience, I increasingly agree with a viewpoint: the essence of the cryptocurrency market is a magnifier of human nature.
There is no such thing as 'guaranteed profit'; only probabilities and risk control. Those who can profit long-term do so not because they predict better, but because they understand self-control better.
For example, according to data, traders using leverage above 5x have an average survival period of only 17 days. That's why I never recommend beginners to touch leverage.
Also, do not believe in any hype about 'revolutionary technology'. Data shows that 87% of new public chains disappear within two years. My current strategy is: only invest in mainstream coins that have been tested by the market and participate in innovative projects with small amounts.
IV. Sincere advice for beginners
Invest with spare money. Do not use funds needed for living expenses, and do not borrow to trade cryptocurrencies.
Simulate before going live. Spend at least three months learning the basics.
Stay away from leveraged contracts. 83% of beginner liquidations occur with leverage above 5x.
Independent judgment. Do not blindly follow KOLs' trades; data shows that 68% of popular coins on Twitter halve within a month.
Continuous learning. The market is changing, and only by constantly evolving can we survive.
Reflecting on these eight years, I am most grateful not for any successful trades but for those failures. They taught me that in this market, surviving is victory.
According to research from Cambridge University, investors who strictly adhere to risk control rules can increase their three-year survival rate from 19% to 68%. That's why I always prioritize risk control.
The crypto market never lacks opportunities; what it lacks is patience and discipline. When you can overcome human greed and fear, this market will become your ATM.
Follow Xiang Ge to learn more first-hand information and precise points in the cryptocurrency world; become your guide in the crypto space, as learning is your greatest wealth!#加密市场反弹 #美联储降息 $ETH
