When gambling, the brain releases dopamine, a substance that can make you feel extremely excited, not just when you win, but even when you lose, the thrill of that moment can take you to the peak of excitement; it’s a mesmerizing feeling that not only satisfies but can also lead to addiction!
Cryptocurrency contracts have similar effects. For many, if they lack strong self-discipline, trading cryptocurrency contracts is no different from gambling in a casino.
Additionally, many people are very smart and wise, but they cannot see themselves clearly.
For those playing cryptocurrency contracts, understanding oneself and judging whether one is suitable for playing is very important. As the saying goes, 'Knowing others is intelligence; knowing oneself is true wisdom.' Many people are smart but lack self-awareness.
I started trading cryptocurrencies at 22. By 2024-2025, my funds will reach eight figures. Now, when I go out, I must stay in high-end hotels costing around 3,000 yuan, and my suitcase and hat may have cryptocurrency-related symbols.
It's much more comfortable than what the older generation experienced in traditional industries or what the post-80s generation faced in e-commerce. I have hardly ever dealt with troublesome business disputes.
The biggest point in trading cryptocurrencies is having a good mindset; skills come second.
Next, let's talk about the most concerning issue: how to quickly recover after a liquidation loss.
1. Stay calm first, then summarize.
Don't trade impulsively: If you lose money, don't rush into revenge trading, thinking you'll recover it all in one go; this often leads to even more losses. Calm down first, and don't act impulsively.
Find the cause: See if you were chasing highs and cutting losses, or if you used too much leverage, or if you were just blindly following trends? Identify the problem and avoid repeating it next time.
2. Learn knowledge and improve skills.
Deeply understand the projects: The cryptocurrency space changes quickly; you must keep learning and understand the fundamentals and technology of projects to better seize opportunities.
Keep an eye on market trends: Policies, market sentiment, and technological developments are all important to follow; don't let your information lag behind.
3. Be steady and avoid seeking quick profits.
Regularly invest in mainstream coins: If funds allow, invest a fixed amount regularly in mainstream coins, such as Bitcoin and Ethereum, to smooth out market fluctuations over time.
Participate in DeFi projects: Some low-risk DeFi projects, such as staking and liquidity mining, can earn you some income, but be cautious of smart contract and platform security.
4. Adjust your mindset and accept reality.
Accept losses: In investing, there are gains and losses; what's important is to learn from the experience.
Set reasonable goals: Don't think about recovering your losses in a short time; set a reasonable timeline and goals for yourself, and take it slow.
Don't borrow money to trade cryptocurrencies: If you lose, don't think about recovering by borrowing or using living expenses; this could lead to even bigger troubles.
5. Find additional income.
Part-time jobs or side businesses: If losses are significant, consider taking on a part-time job or side business to increase your income.
Participate in the cryptocurrency ecosystem: If you understand blockchain, you can try participating in project development, promotion, or community building to earn some extra money.
Trading cryptocurrencies actually has tricks; as long as you operate simply, making big money is also easy.
That's all for today. During a bull market phase, if you're really struggling to navigate the cryptocurrency space alone, don't force yourself; come find me for guidance, learn about the latest information, strategize, embrace the bull market, improve your win rate, and say goodbye to being trapped at high levels.
