"Sister, I'm done..." The WeChat video popped up at 2 AM, and Akai in the screen looked as pale as paper, his eyes red as if about to bleed, his voice trembling to the point where he couldn't even form complete sentences. It took me 3 minutes to understand that this 'newbie' who had just entered the market for 3 months had dared to fully leverage with 10 times margin on popular stocks, without any safeguards in place, and when the market pulled back, he was forced to exit directly—100,000 principal, not even a cent left.
Looking at his breakdown, I suddenly recalled myself from 5 years ago. When I first entered the crypto space, I followed the so-called 'industry experts' to chase highs, saw the numbers in my account turn green and got carried away, planning overnight how to use the profits: buy a new car, add home appliances, and even contemplate early retirement. The next day, a big bearish candle came crashing down, and my account was wiped out completely; at that moment, I understood: full leverage is not a shortcut to wealth, it's a direct route to the edge of a cliff.
After 5 years of trial and error, going from losing all savings to stable profits, the pitfalls I’ve encountered could fill a mountain. I ultimately summarized three 'survival rules in the crypto space'. Relying on these three points, I have steadily survived until now, and even some fans who followed this method went from 2800U to 48000U in 4 months. Today, I’m sharing my heartfelt insights to help you avoid those deadly traps that could bring you back to poverty overnight.
One, the amount for a single entry must never exceed 7% of total capital: leave yourself enough room to recover.
Many retail investors always think 'if you're going to earn, earn big', and they dive in with all their assets, unaware that the crypto market's volatility is comparable to a roller coaster, and even the steadiest market can suddenly reverse. My iron rule is: no matter how optimistic you are about an asset, the amount of capital for a single entry must not exceed 7% of your total capital. For example, if you have 5000U in capital, the most you can invest in a single entry is 350U. Even if you trigger a stop-loss, you will only lose a small amount, and it won’t hurt too much; you will have countless opportunities to flip from there.
Two, the stop-loss line is firmly set at 1.1%: keep the risk in your own hands.
The most common mistake new traders make is thinking 'the market will come back', and they hesitate to set stop-losses, resulting in small losses turning into big ones. I never gamble on the market; instead, I control risks using mathematical calculations: with 350U opening a 5x leverage, I set the stop-loss line within 1%, resulting in an actual loss of about 7U, which is exactly 1.1% of total capital. Even if I were unlucky and lost 10 times in a row, I would only lose 11% of my capital. As long as I catch one trend, I can break even. Remember: in crypto trading, only those who can control risk deserve to talk about profits.
Three, when the market is unclear, stay in cash: only those who learn to 'wait' can make big money.
Every day in the market, there are various rumors and short-term fluctuations. Many people can't help but act impulsively, rushing in at the slightest movement, resulting in frequent losses due to over-trading. My principle is: if I don’t understand the market, I absolutely won’t act! Wait for the daily line to break through key positions, and for the volume to steadily follow, confirming a clear trend before entering. It’s better to miss 10 small opportunities than to step on one big landmine. Being cautious is not being cowardly; it is the most valuable boldness in the crypto space.
That fan who went from 2800U to 48000U in 4 months later told me: “I used to think that going all-in was bold, but now I understand that surviving in the crypto space is the only chance to make money.” This statement hits the core — this industry has never been about who earns faster, but rather about who lasts longer. You may have seen people doubling their investment by luck in the short term, but those who can stay in the market long-term and continue to profit are definitely the ones who know how to control risks.
Lastly, let me share a heartfelt statement:
The crypto space is like a battlefield where the sands are constantly shifting. Every day, some people make a fortune, while others lose everything. But remember: the market is never lacking; what is lacking is the ability to preserve capital. Stop entering the market with a “let’s gamble” mentality; constrain yourself with rules and replace greed with rationality, and you will be able to laugh until the end in this prolonged battle.
Next, I will continue to share more practical skills and market analysis to help you avoid retail pitfalls and find the right entry points. If you find it useful, give a follow to avoid getting lost, and let’s chat in the comments: How much did you lose because you didn’t control risks? Do you have your own trading rules now? Perhaps your experience can help more people avoid detours — after all, in the crypto space, surviving is the biggest victory!
