At 2 AM, my phone vibrated so much that I nearly tossed my melatonin off the bed. It wasn't a platform notification; it was my best friend Xiaoran's voice message bombardment. Upon answering, her cries broke through the earpiece: 'Sister Ke! I lost all my 2800 crypto assets! I went all in with 5x leverage, and it dropped by 3 points; my account was wiped out! I'm crying so hard that I can't hold my cup!'
Rubbing my sleepy eyes, I asked her to send me the trading records. The moment I opened it, I gasped — this wasn't trading; it was clearly holding a lighter to a bomb! 97% of the principal was all in with no stop-loss set; it was like riding an electric bike to race on the highway while actively pulling out the car keys. It's no wonder it flipped!
After six years of crypto analysis, I have seen enough cases of accounts being cleared to fill two suitcases. I've encountered more pitfalls than mainstream trading platforms' candlestick charts, and in the end, I understood one truth: making money in crypto isn't about 'daring to charge' but 'staying alive.' Many newcomers enter the market thinking 'full position = quick profits' is ingrained in their DNA, yet they don't realize that trading all in isn't aggressive; it's purely suicidal operation. What truly determines whether you can make money long-term is never the leverage ratio but how much principal you dare to stake.
Let me give you a heart-wrenching calculation; data doesn't lie: if you have 1200 assets and impulsively open a full position of 960 with 5x leverage, it's like tying 80% of your wealth to a car without brakes. If the market fluctuates against you by 7.5%, bang! Your account goes to zero instantly, leaving no chance to recover; but if you only use 120 to open 5x leverage, even if the market bounces back against you by 87%, you would only lose that 120, and your total account would still have 1080 — your risk tolerance would be 9 times worse!
Too much talking brings tears; the biggest pitfall I encountered last year still makes me feel pain. At that time, the market was jumping back and forth in a range, but I thought I understood the main forces' intentions and impulsively opened a full long position. As a result, there was a sudden market fluctuation in the middle of the night, and the market dropped sharply. When I woke up from my dream, my account was glaringly red — all the money I had earned from months of sleepless nights analyzing data while eating instant noodles was gone in three days! Furious, I pounded the keyboard, my knuckles turned red, and I wished I could pierce the screen, finally crying for half an hour over the cold noodles in the takeout box.
Later, after much reflection, I dug up thousands of cases of accounts being cleared, and combined with my six years of trading experience, I summarized three 'life-saving rules for the crypto world.' After following these rules, not only did I recover my losses, but my account also steadily increased by 83%. Today, I'm sharing these heartfelt lessons with you, each one is a lesson learned from real money:
1. Position Rule: Never exceed 6% of total funds in a single trade — leave yourself an escape route.
No matter how many assets you have in your account, you must never exceed 6% of your total funds in a single order! For example, in an account with 8000 assets, the maximum single investment is 480. Even if a stop-loss is triggered, the loss would only be 33.6, which is manageable and still leaves room for recovery.
Before I place an order now, I have a compulsion: I write the total funds × 6% on a sticky note and stick it on my computer screen. If it exceeds this number, I won't hesitate to close the software, no matter how much the market seems like 'easy money.' Last month, there was a sudden market surge, and the candlestick chart looked like it was about to break through the sky. I almost couldn't resist over-leveraging but managed to throw my phone aside and spent half an hour watching funny short videos to calm down — looking back now, the market corrected that afternoon, and I'm glad I didn't impulsively become the 'bag holder'!
2. Stop-Loss Red Line: Single loss ≤ 1% — losing small amounts allows for big gains.
Controlling your position isn't enough; the stop-loss line must be firmly set! For instance, using 480 assets with 5x leverage, setting a 0.9% stop-loss line in advance means the actual loss would only be 8.64, equivalent to 1.08% of total funds, which is almost negligible.
Remember: the crypto world never lacks opportunities to make money; what it lacks are those who can survive until the opportunities arise. Those who hold on to 'let's wait a bit for a rebound' or 'maybe it can break even' end up losing their accounts. I've seen too many people who, despite only losing a little, hesitate to stop-loss, watching their losses gradually expand until their accounts are wiped out before they regret it — stop-loss isn't a loss; it's giving the account a lifeline!
3. Vague Market = Life-threatening situation, just shut down and lie flat — being out of the market never incurs losses.
This is the most easily overlooked yet crucial point! Many people float away after making money, thinking they are 'market prophets,' wanting to charge in regardless of any market conditions, even when the candlesticks are chaotic and the volume isn't supportive; they insist on holding on.
But let me tell you: operations in a vague market are all about luck. Now, as long as I see the daily line hasn't broken key levels and the volume isn't cooperating, I directly close the software to binge-watch dramas and eat snacks; I absolutely won't hold on. Being out of the market isn't cowardice; it's a wise person's 'calm action' — you can't risk losing 100 bucks just to earn 10, right?
Previously, a fan complained to me that his account was cleared every month, and he was about to lose all his savings, almost unable to pay rent, and considered quitting the circle. I advised him to follow these three iron rules, and four months later, he suddenly messaged me with good news, excited as if he had won the lottery: 'Sister Ke! I went from 2800 assets to 49000! I used to think a full position was daring, but now I understand that true skill is being able to survive steadily and eat well when a big market comes!'
Now he has not only paid off his credit card but also upgraded to new trading equipment and an esports chair. Last time we video chatted, his eyes were sparkling, saying he no longer has to wake up in the middle of the night to check the market; he can sleep soundly now. This is the significance of the 'life-saving rules'!
The crypto world is like a deep sea; some blindly jump in with fantasies of 'getting rich overnight' and end up getting washed up on the beach at the first sign of a storm; others swim slowly with 'life first' awareness and eventually find real treasure. I once stumbled around in the dark, getting hurt before grasping this 'life-saving lamp.'
