Yesterday, I received a message saying that after half a year in the market, he lost 150,000, and now he is almost unable to pay his mortgage. I looked at his trading records and was so angry that I slammed the table: it's the same old traps, how can there still be people falling for them! Today, I must lay out these fatal mistakes; if I don't speak up, many more people will really be deceived!
The first mistake: using "emergency funds" to trade cryptocurrencies. This is the dumbest and most fatal operation! How many people enter the market with money from their mortgage, car loan, or even online loans, thinking they'll make a quick profit, only to end up losing everything. Remember: only participate with "money that won't affect your life if lost." I always keep a 12-month emergency fund stored in a safe place, so even if the investment goes completely wrong, it won't affect my family's life. This is the bottom line; it must not be broken!
The second mistake: treating leverage as a 'get-rich-quick tool.' Newbies must avoid leverage! 10x leverage means that a 10% rise or fall in the asset will double or wipe out your capital, and a daily fluctuation of 10% in the crypto world is normal. I've seen too many people go from earning millions to being deeply in debt because of leverage; some have even taken extreme measures because of it. The volatility in the crypto world is already significant enough; doing well in spot trading and maintaining a good cycle can yield considerable long-term profits without relying on leverage, which is a 'poison.'
The third mistake: blindly trusting 'KOL recommendations' and 'insider information.' Those who flaunt their earnings in live streams every day and claim to have 'exclusive insider information' are either trying to take advantage of you or don't understand it themselves. In 2023, I followed a certain influencer to buy new coins, and as a result, the project team ran away, and I lost all my capital. Now I only trust three things: the project's white paper, on-chain data, and my own analysis. When someone says 'it must go up,' first ask yourself: can I bear a 50% drop?
The first rule of survival in the crypto world is 'survive first, then talk about making money.' If you're still making these mistakes, stop immediately! Follow me @链上标哥 so you don't get lost!
