10 years in the cryptocurrency world, the most indelible experience was going from a 900,000 position to a zero balance —
Holding positions for 12 hours, profits melting away like ice under the scorching sun, almost forced to liquidate down to my underwear.
Three major truths learned only after heart-wrenching losses
Leverage is not a fierce tiger; position is the reins
Leverage is like a hot pot with ice drinks, a moderate amount brings joy, excessive amounts harm the body. 100 times leverage with 1% position is less risky than buying snacks with a full position.
Students use 20 times leverage to trade ETH, investing 2% of capital as “pocket money” each time, and have not been liquidated for 4 years, earning significantly more than spot trading. Core formula: Real risk = Leverage multiplier × Position ratio. If I had understood this earlier, I could have saved at least the price of a small electric scooter from my 800,000 loss.
Stop-loss is not cutting losses; it is the account's fire extinguisher
During the crash in 2024, 78% of liquidated traders held on until “the circuit smoked”: not selling at a 5% loss, ultimately liquidating at a 20% loss.
That’s how my 800,000 disappeared, watching the balance free fall from a 3% unrealized loss to 20%. Now I equip my account with a “fire hydrant”: stop-loss immediately if a single loss exceeds 2% of the principal; this trick has helped me avoid four black swan events and saved 3 million, enough for down payments on two houses!
Rolling positions is not all-in; it should be done gradually like saving for bubble tea
In the early years, making money meant going all in, with profits coming and going quickly. Later, I used the “stair-step tea tasting method”: start with a 10% initial position, earn 10% then add another 10% profit for a refill.
With a 50,000 principal, I invested 5,000 (10 times leverage), adding 500 for every 10% profit. Last year, I expanded my BTC position by 10%, with a safety cushion of 30%, earning more than those with full positions, while still sleeping soundly!
Institutional-level survival rules: From passive hits to proactive control
When opening positions, always calculate the “life-saving formula”: Total position ≤ (Principal × 2%) ÷ (Stop-loss percentage × Leverage multiplier). With a 50,000 principal, 2% stop-loss, and 10 times leverage, the maximum position is 5,000. Using this formula, I turned 50,000 into a million during last year's halving market, with a return rate exceeding 1900%!
Taking profits is like “catching fish and pulling in the net”: Take 1/3 at a 20% profit, take another 1/3 at 50%, and tie the remaining to a “buoy” — pull in the net if it drops below the 5-day moving average. Last year, a certain cryptocurrency used this method to secure 80% of profits, while those who held on were left with nothing but fish bones.
Trading cryptocurrencies alone is like walking in the dark at night, making it easy to fall into a ditch! Finding the right guide is essential to transform from “chives” to “hunters.” I have the practical knowledge to help you on the path to breaking even and rolling over. Follow @趋势猎手老金 — only partners with strong execution will be taken along.
