Many fans ask me what to do if they lose money in the crypto world; first, take stock of the three common ways to lose money in the crypto world.
One, losing money by buying on the left side
If you buy on the left side, losing money is normal; just hold on. SOL can drop from 250 to 10 and then rebound dramatically. However, buying on the left side is counterintuitive but has a high win rate; it is also the simplest strategy best suited for most retail investors.
I started building positions in the second half of 2022, and BTC (60k) has also gained 2-3 times profit. Long-term floating losses while continuing to invest money is tough, but what you are buying is valuable coins; it's hard to get trapped, patience is needed.
Two, losing money on contracts
If you are trading contracts, reaching zero is just a matter of time. Because
1, Contracts can be very addictive; at first, you might open BTC with 2 or 3 times leverage, but later, you cannot suppress your dopamine and endorphins and start opening dozens of times on altcoins. The more you play, the more excited you become, and the more anxious you get. Your cerebral cortex undergoes a qualitative change.
You will lose all interest in the odds and patience for cash. Until you lose everything and jump off a building.
2, The crypto world is a real dark forest rule; everyone flaunting contract orders and pulling trading groups has only one goal: to wipe out your principal. You can figure out why KOLs lead you; they can casually open several high-leverage big orders and achieve financial freedom.
3, **the exchange is not just interested in your few dollars in transaction fees; they are also focused on your principal, and will collaborate with KOLs to set up a scheme. Once the timing is right, there are many ways to explode, and there will always be a method suitable for you.
Until the last drop of oil is squeezed out. Then **the exchange and KOL will happily split the spoils, and will also conveniently insult you as a fool
4, The essence of contracts is that they are hedging tools for large players, not toys for small investors to get rich overnight. In the crypto world, protecting your principal and holding onto your positions are always your top priorities. Once you lose your principal, it becomes very difficult to turn things around.
Holding cash may incur floating losses, but it won't be a critical injury; even garbage like EOS will bounce a few times when the bull market comes
Three, short-term trading
Short-term trading, short-term, suggest reducing trading frequency, doing less swing trading, and capturing more cycles.
It's quite funny that some experts, holding projects with a market cap of hundreds of millions and trading volumes of millions, are obsessively analyzing K-lines. With such a small market cap, what’s the point of analysis? A little money can easily push it up by 10%, and a casual sell can also crash it. You can analyze Bitcoin and Ethereum, but not this.
【There is a remarkable existence in the crypto world, even in a poor market, there will be 1 to 2 good trends every year, as long as you can find future hotspots and ambush in advance】.
For example, the ETH Shanghai upgrade marks the transition from POW to POS, so the staking sector will definitely produce a few outstanding projects. If you are willing to research, then the transition of ETH from inflation to deflation is a certainty; more locked positions mean less circulation, which will obviously benefit the price. If you ambush a few months in advance, a 30-50% increase is not a problem.
