Want to avoid liquidation in the crypto world? Here are 6 self-discipline strategies you must know!

Learn to take profits and cut losses. The market changes rapidly, and you must learn to take profits and cut losses. This is not difficult to say; controlling your greed is key. A cryptocurrency will not rise endlessly, nor will it keep falling; there are cycles. Therefore, taking profits becomes especially important. Don’t always worry about closing your position too early and missing out on future profits! You need to remember that the money you can earn in the crypto world is infinite, but the money in your account can be lost completely. Cutting losses means giving up on sunk costs, which is also difficult. Don’t always think you can hold on a little longer; the market can turn in the next second. Don’t think like this; while it may hurt to cut losses, it can really save your life.

Don’t trade frequently. This is a major taboo in the crypto world. Stop thinking about making money on both sides? Wake up; not many people can do that. Be satisfied if you can profit on one side. Another point is the transaction fees; if the leverage is low, it’s fine, but with high leverage, it becomes painful. You lose 1-2% of your profits as soon as you open a position. You must ensure that this trade can make money; otherwise, it is meaningless as you will just be giving all your gains to the market makers as fees!

Learn to stay out of the market. When you don’t understand the market, don’t blindly open positions. You might say, “It’s painful to miss out.” So let me ask you, is it more painful to “miss out” or to “lose money”? Blindly opening positions without understanding the market is like opening a blind box! Trading requires a probability advantage; no one can accurately predict whether the market will go up or down (of course, you can use hedging to reduce directional mistakes). The market changes too quickly; we can only say there is a high probability of going up or down.

Take it step by step. Don’t always think you can become a big winner in one go; you can’t rush and eat hot tofu too quickly! The crypto world won’t make you rich overnight. For example, if you use a capital of 100 and trade with a 10x leverage, your position is 1000. If it rises by one point, you earn 10, and if it rises by two points, you earn 20. That’s enough for a breakfast, right? Now, working in a factory earns you 15 an hour. If you open three or four trades a day with a win rate of 60-70%, isn’t it more comfortable than working in a factory?

Absolutely do not go all in; if something unexpected happens, it’s all gone. For example, if the market rises as expected, but then suddenly a major news event causes it to plummet, and you haven’t set a stop loss, then you’re finished! So don’t rush; definitely trade with light positions, and prioritize stability.