Why can't you ever go all-in when trading cryptocurrencies? 7 years of lessons learned by seasoned investors through painful experiences!
1. All-in = Giving up control (becoming a slave to the market)
When the price rises: Unable to increase position, helplessly missing opportunities ("If only I had kept some funds for averaging down")
When the price falls: No money to average down, forced to hold on or cut losses ("Being all-in means being stuck at 20% losses = need a 25% increase to break even")
2. Black swans specifically target all-in traders
Case 1: LUNA went to zero in 2022, all-in traders lost their assets overnight
Case 2: FTX collapsed in 2023, institutions holding all-in platform tokens went bankrupt directly
The market always has risks you can't foresee (policy changes, exchanges going bankrupt, project fraud...)
3. Amplifier of emotional control
When all-in and prices fall: Fear → Selling at the bottom
When all-in and prices rise: Greed → Missing profit-taking opportunities
Psychological experiments show: Under all-in conditions, the error rate in decision-making increases by 300%
4. Position rules of smart money
Buffett: Always keep $20 billion in cash
Wall Street consensus: No single asset should exceed 5% of total position
Cryptocurrency survival guide:
✅ Spot position ≤ 70% (keep 30% for extreme market conditions)
✅ Contract leverage ≤ 3 times (to avoid total liquidation)
5. Leave yourself an escape route
Remaining funds can:
🔄 Buy the dip in batches (reduce holding costs)
🎯 Strike swiftly during sudden opportunities (like a 20% drop in BTC followed by a rebound)
💸 Be a lifesaver in critical moments (no need to cut losses when in urgent need of cash)
Remember: The market is never short of opportunities, but it lacks the capital to survive until tomorrow. Better to earn less than to incur massive losses. (Those who advocate "All in" are either fools or scammers)
The essence of investment is a probability game; going all-in is like betting everything on a single roll of the dice — and the dealer (the market) always has the ability to cheat.