I have seen too many people earn enough money in three months that others take three years to earn, and I have also seen them lose their entire fortune in three days. As for me, an 'old hand' who has been crawling in the cryptocurrency circle for 8 years, my account has never been cleared, relying not on any exclusive strategies, but surprisingly on what everyone looks down on as being 'timid'.
In 2018, in the handshake building in Shenzhen, I once relied on a wave of market trends to turn 300,000 into 3,000,000. At that time, the calculator was calculating to the point of confusion, thinking about where to squander after resigning, but the Christmas pullback came unexpectedly, and in three days, the account shrank to 600,000. That day, I stared at the screen in a daze until dawn, and finally realized a truth: in the cryptocurrency circle, getting rich quickly is just an illusion that fades away, living is what allows you to wait for the next opportunity.
Now, after 8 years, I've seen too many overnight famous "masters" turn into fleeting memories, while I have managed to steadily progress to this point. It's not that my skills are so great, but after stepping into enough pits, I have welded three life lines for myself.
Life line one: If leverage exceeds 3 times, you are actively sending yourself to the slaughter.
During that wave of bull market in 2021, I also once got carried away. Before "519", watching mainstream coins rise all the way, I impulsively opened a long position with 150x leverage, and at that time, I even boasted to my friends, "This wave will double, and I will change my car." As a result, two hours later, the market suddenly plummeted, and the numbers on the screen disappeared at a visible speed, instantly evaporating 600,000 in principal. That day, I turned off the computer and lay down for a day. When I woke up, the first thing I did was to stick a note on my desk: Leverage > 3 times = becoming cannon fodder for the main force.
Now, I only dare to use a maximum of 2x leverage, and I have to split it into 3 batches to gradually increase my position. If the market turns against me, I will never hold on stubbornly; I'll cut my position immediately at the stop-loss point. Even if the market goes my way, I won't be greedy; I will take profits in batches when reaching expected returns. Those who think they can get rich overnight with high leverage have mostly already been eliminated by the market.
Life line two: Altcoins are fireworks; don't treat them like real estate certificates.
In 2022, the most severe pit I stepped into was heavily investing in a new coin claiming to be the "light of domestic products". When I first entered, my principal was 250,000, which skyrocketed to 1,500,000 in just a month. At that time, the project party boasted extravagantly, claiming to create the "next mainstream coin". I was also swept away, thinking of selling after doubling my investment. As a result, half a year later, the project team directly ran away with the funds, the official website was down, and the community was disbanded, leaving that money to go down the drain.
After taking a big loss this time, I established my position rule: 85% of funds are allocated to two major mainstream coins, and only the remaining 15% of "spare money" is allowed for hot coins. More importantly, no matter how optimistic I am about a coin, as long as it drops by 8%, the stop-loss order executes automatically, and my speed is faster than my ex blocking me. You must know that no matter how splendid the fireworks, they will extinguish, only core assets can withstand the storms.
Life line three: Only those who can stop losses deserve to talk about dignity.
Having stayed in the crypto circle for a long time, who hasn't experienced the embarrassment of "selling too early"? In December last year, mainstream coins suddenly dipped, and I was stopped out at 89400, only to see it rebound to 92000 the next day. A group of people in the community laughed at me for having "a courage smaller than a needle's tip" and for "missing out on a big market movement". I only replied: My principal is still there, even if I miss ten times, I still have a chance to enter for the eleventh time.
As expected, when the market corrected this week, I decisively increased my position, and my account set a new high. Many people always feel that stopping losses is embarrassing, but they forget that the market is never short of opportunities; the most precious thing is the principal. If the market is right, hold on and earn; if it's wrong, accept it and stop losses. Protecting the principal is the only way to have a chance to turn things around.
After 8 years, my profit curve hasn't surged like a rocket; it's just a gentle upward slope, but it has never broken. I've seen too many people earn money by luck, only to lose it back through their own strength, and I've come to understand one principle: the crypto circle doesn't fear slow earnings; it fears quick deaths.
Instead of spending all day researching what "short-term strategies" or "insider information" to use, it's better to first secure your life lines. After all, only by staying alive at the poker table can you have the chance to draw good cards.
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