Before opening a position, ask yourself: Am I here to pick up money or to give away money?
The cryptocurrency market never sleeps, and some people boast that '5x or 10x leverage is safe', but that's not true. The leverage ratio is just a smokescreen; what really determines your survival is the proportion of your assets you bet. Listen to me: never exceed 20% of your principal when opening a position, and keep your total position controlled at 2-4 times. Don’t think it's too conservative; if you can't protect your principal, you don’t even have the qualification to be at the table.
Contracts are not buying coins.
If you buy coins and get stuck, you can still close your eyes and wait for the position to recover, but can you withstand a contract? You could be liquidated in minutes, leaving nothing behind! The contract market is a harvesting machine, profiting from the sweat and tears of those who are liquidated. It's laughable how many people rush in with the fantasy of 'turning their fortunes around', only to be taught a lesson by the market. True veterans only do one thing: survive.
Don’t let the dream of sudden wealth cloud your judgment.
Why do 80% of retail investors lose money? It's not due to a lack of opportunities, but because they can't control themselves! As soon as the market fluctuates, they want to go all in, chase highs when it rises, and stubbornly hold when it falls, completely ignoring the risks. Now even professional teams are openly operating: shorting altcoins and going long on Bitcoin to hedge risks. But retail investors? They are still dancing on the edge, watching their hard-earned money go to waste.
Risk management is a lifeline.
Playing contracts is like flying a plane; do you want to take off without understanding the controls? Risk management is your flight manual, and stop-loss is your parachute. Without these, you’re playing with your life! When the real opportunity comes, making money feels like picking it up for free. But the prerequisite is that you have to be alive and have capital in hand.
Survival rule: Be calm like a hunter.
There are many opportunities to make money in the cryptocurrency world, but surviving is more important than anything else. When others are chasing highs and cutting losses, you should remain calm like a hunter, patiently waiting when you're flat, and decisively striking when you act. Those who test the waters on the edge of risk ultimately become stepping stones for others.
Conclusion:
Don’t believe the nonsense that 'low leverage is safe', and don’t daydream about getting rich overnight. The cryptocurrency world is not a charity; it's a battleground. Want to make money? Learn to survive first, control your impulses, and protect your principal. Before you open your next position, ask yourself: Am I here to pick up money or to give away money?
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