A person has been trading cryptocurrencies for 8 years, why did he end up with a debt of 6 million and leave the crypto world?

The story goes like this: through various operations during the waves of a rising bull market, he managed to accumulate wealth, reaching over 10 million in 2017. However, in 2018, he lost over 1 million playing contracts. In 2020, he opened 8 seafood takeout restaurants and lost 8 million due to the pandemic. In 2021, he bought a Kia mining machine and lost 6 million, and over 200 thousand on an Ethereum mining machine. In 2023, he lost over 200 thousand on contracts, and eventually borrowed money, sold shares, and leveraged to buy BTC, which dropped to 39,000, resulting in him losing more than half. He then started playing with meme coins, and by December 2024, he had lost everything and exited the market.

From then on, he was in debt for 6 million, despised and avoided by relatives and friends.

At first, this guy was very cautious, starting with 20,000. He had his own company that could earn hundreds of thousands a year. Later, when he made money in the crypto world, he neglected his company. He started trading contracts carefully, beginning with 100,000. In the end, he added funds and suffered significant losses.

I can summarize that his money was earned through luck and riding the market trend.

The root of his failure was not because of trading contracts, but because he engaged in things he didn't understand and invested too much. He removed 1,600 from mining machines and takeout, and he thought he could recover his losses from contracts. When you have this mindset, it can lead to losses. Contracts allowed him to make money, but when you are out of options, you may resort to this skill, which could pull you into the abyss.

If you only play with small sums, it’s usually fine. The key is that as you play, the amounts get larger. Just like someone who initially hoarded coins ends up playing with contracts, the development of events has huge variables. If your understanding isn't solid, you will naturally be dragged into the abyss.

My conclusion is that if you make money, you should withdraw it and do asset allocation. You should only leave a maximum of 30% in the crypto world. If you can get rich, that's enough; if you can't get rich, losing this much won't hurt you much.