Trading cryptocurrencies without a stop-loss? What’s the difference between that and dancing with a bomb!

A couple of days ago, the comments section exploded, and a guy directly @ me: "How to allocate positions? How to control risk?"

I immediately replied: "If you can't differentiate between these two things, trading cryptocurrencies is like giving away money!"

1. Poor position allocation means making money is like a lottery

Over the years, I've seen too many 'all-in warriors,' and last year I encountered three of them!

The worst was a recent graduate—a young man—who put all his five-year savings for a house down payment into some scam coin and leveraged it 5 times!

As a result, the project team fled overnight, the coin price plummeted, and a 99% drop directly sent him into the 'liquidation club'; he lost everything!

For newcomers, your position should never exceed 30%!

Keep the remaining 70% in your pocket and wait for the market to stabilize and the trend to become clear before gradually adding more.

When I was trading contracts in 2020, no matter how promising the market appeared, I only invested 20%; even if the market turned against me, I wouldn't go to zero!

Once things go smoothly and the account balance is solid, the position can be raised to 50%.

But there’s one strict rule: never go all-in, and don’t bet on a single cryptocurrency!

Before opening a position, ask yourself: "If I lose everything, can I calmly turn off my computer?"

If you can’t, then stop!

2. A stop-loss is a lifesaver; small losses for big survival

Risk control boils down to two words: stop-loss! This thing acts like a safety valve for your account; you must set it before placing an order—like cutting losses at 3%, and exiting at that point, never dragging it out!

I made this mistake when I was younger: in 2019, while trading EOS longs, I clearly hit my stop-loss but thought, "Just wait a little longer for a rebound." As a result, I dragged a 10% loss into a 50% loss, and my account got halved!

The feeling was like watching my money being thrown into a shredder, and it was gone in a few crunches...

Only later did I fully understand: a stop-loss is not giving up; it’s a lifesaver! A small loss is like a scraped knee; a band-aid will do; a big loss is a deep wound that may not even be survivable!

Finally, let me say something very straightforward:

Think through your position, stop-loss, and take-profit thoroughly before placing an order. Don't always focus on doubling your money; first, think about surviving—after that, time and the market will provide the answers!

Want to know how to set a stop-loss specifically? How to allocate positions?

Click on the avatar and follow @加密大师兄888 for the 'Position Allocation Table' + 'Stop-Loss Rules,' and I will guide you step by step to avoid liquidation traps!

Remember: in the cryptocurrency world, those who can escape unscathed are never lucky; it’s discipline!