1. Don't be enchanted by x100 leverage

Some of you think that just having 100 dollars can turn into 10,000 dollars thanks to leverage of x100. But calculate carefully:

When you use full margin with x100 leverage, the price only needs to fluctuate 600 points for your account to be liquidated. That means with a capital of 100,000 dollars, you can still lose everything if the price moves against you by 600 points.

High leverage does not help you get rich quickly, it only makes you lose faster. The most reasonable leverage is x3 to x5 – just enough to boost profits while having a margin to handle situations.

When using x100 or x125, you will be psychologically tempted to add more positions when the market goes in the wrong direction, and that will lead to account liquidation in the future – for sure.

2. Don't be lured by altcoins

There are 365 days in a year. You can win for 364 days by trading altcoins, but just one day of a mistake is enough to lose everything. Therefore, I only focus on BTC – the coin with the largest liquidity and the least risk of manipulation.

Look back over the past 5 years:

How many people investing in the top 2 coin ETH are profitable? Very few. In fact, many are suffering heavy losses even though they have held since the peak in 2021. Not to mention junk coins, memecoins – profits are low but the risk of total loss is extremely high.

3. Always have a clear entry – exit point

Entering a trade must have clear Take Profit (TP) and Stop Loss (STL). Don't trade based on emotions, especially when the market has major news like CPI, FOMC, interest rates – these are times when prices can fluctuate unexpectedly, making it easy to get stop hunted or blow your margin.

The market will still be there, don't rush during high-risk times.

4. Trade at a reasonable time

You should only trade from Monday to Friday when financial markets are fully operational. Saturday, Sunday, especially during the European session when stocks have not opened – the crypto market is often very quiet, making it hard to trade effectively.

Choose the time when there is cash flow and high volume, then technical analysis will be effective.

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Crypto is not a game of chance – you need to have principles, discipline, and strategy. Just one account liquidation, and you will understand: profits do not come from recklessness, but from risk management.

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