When the account soared from 100,000 to 750,000, I didn't cash out; instead, I turned around and went all in to buy at the bottom. As a result, by morning, there was only a string of numbers left. This was the most painful lesson I learned in the cryptocurrency market.
At the end of spring 2022, the entire market was still immersed in the frenzy of a certain star cryptocurrency, with prices breaking into three digits leading many to shout 'ten thousand times myth.' At that time, I had 100,000 in capital and, relying on my judgment of market sentiment, opened a short position at a relatively high level, thinking I would take profits at the right time, but I didn't expect the market fluctuations to come so rapidly.
In just 4 hours, my account balance skyrocketed to 750,000 as if on a rocket. Staring at the numbers jumping on the screen, I had even begun to plan for changing houses and buying cars for my parents. That sense of 'overnight success' completely made me lose my direction. Looking back now, I realize that I made the most fatal mistake of a newcomer in the cryptocurrency market—mistaking luck for skill and treating short-term fluctuations as long-term trends.
When greed clouds your judgment, disaster lurks in the next step. That night, I inexplicably revoked my profit-taking order and instead invested all my funds to buy the dip, fantasizing that I could catch the 'last chance to board'. But the market never shows mercy to gamblers; in the early hours, a waterfall-like drop suddenly occurred, and by the time I reacted, my account had completely zeroed out. The sound of my phone hitting the ground was light, but something in my heart shattered—that was the illusion of 'getting rich quickly' and a shallow understanding of risk.
The three survival iron rules I realized after liquidation are more important than making 10 million.
After lying low for two days, I took out my last savings and gathered 90,000 to re-enter the market. This time I told myself: in the crypto market, surviving is always more important than making quick money. Over the past five years, I have summarized three iron rules, each soaked in blood and tears:
Always leave a 'lifeline' for your positions: never put all your eggs in one basket, and absolutely do not go all in on any single asset. I divide my funds into three parts: one part for long-term value investment (50%), one part for swing trading (30%), and the remaining 20% as emergency funds. Even when faced with the most tempting market conditions, I will never touch the emergency funds; this is the 'survival rule' I learned from getting liquidated.
Use mechanical discipline to combat human weaknesses: set profit-taking and stop-loss levels in advance and strictly adhere to them. Now, before I make any trade, I will first calculate two points: at what profit level will I take profits decisively, and at what loss level will I cut losses decisively. Market sentiment is ever-changing, but discipline is the only anchor. Last year, when a mainstream cryptocurrency surged from 1800 to 2400, I took profits as planned, and it indeed retraced to 1900; this operation made me realize—earning within my understanding is more reassuring than earning all the money.
Only earn money that I can understand, and refuse to chase trends. In recent years, new concepts have emerged continuously in the market, but I only focus on projects with real application scenarios and reliable teams. For example, I have been holding a certain smart contract platform token for a long time; although it doesn't rise as fast as some 'meme coins', its stable ecological development allows me to hold it with peace of mind. When doing swing trades, I only choose assets with high trading volumes and clear trends, and I never touch those air coins that I can't even understand the white paper of.
With these three iron rules, my account gradually grew from 90,000 to a million, and now to tens of millions. This process didn’t have the thrill of overnight wealth, but it was solid step by step. I have seen too many people ride the market roller coaster because of greed, ultimately ending up with nothing; I have also seen many people exit early out of fear before the market starts, missing out on the profits that should have belonged to them.
In the current market, should we be 'greedy' or 'fearful'?
Recently, the market has welcomed new volatility, and many fans have privately messaged me asking: 'With the Federal Reserve's policy shift, should we go all in?' 'A certain cryptocurrency has suddenly surged, should we chase it?' In fact, the answer lies in the lessons I learned back then—there are always opportunities in the market, but what is lacking is the ability to seize those opportunities.
The current market is neither a time for blind optimism nor an excessive panic point. If you are a beginner, don't think about changing your fate with one trade; spend three months learning the basics, practice with small funds, and engrave discipline into your bones. If you are an experienced player, don't forget to look back at your trading records; did those operations that caused you losses violate your initial principles?
Remember: the high profits in the crypto market are candy for the lucky ones, while sustained wealth is a medal for the disciplined. Rather than envying others' 'myths', it is better to make yourself a 'phoenix'.
