The 5 Major Causes of Newbie Liquidation You Must Know: Insights from 7 Years of Experience in the Crypto World. Today, we will discuss why newbies get liquidated, and you must listen carefully. Because almost every newbie who loses money in the crypto space falls into these traps.
The first culprit is going all in, listening to whoever shouts for a rise and going all in, only to get trapped by a pullback. Always remember, never go all in on a single coin.
The second culprit is high leverage. Many newbies enter the crypto space and open contracts with 20x or 50x leverage. A slight market fluctuation can lead to liquidation, and they dare to gamble their lives without understanding the market logic. This is not investing; it’s throwing money away.
The third culprit is not setting stop-losses or take-profits. When the price of a coin rises, they hold on, fantasizing that it will come back. The reality is, it often won’t. Setting a stop-loss is a lifeline.
The fourth culprit is chasing highs and cutting losses. They chase after rises and cut losses when prices drop. They are constantly operating in reverse, getting harvested by the market like a tool.
The fifth culprit is believing insider information. Many project parties and KOLs boast without basis. They draw you in, making you a pawn while they do their own research, and you will eventually get burned. I always say, if you don’t respect the market, the market will teach you a lesson. Liquidation is not a coincidence; it is the result of a set of bad habits accumulated over time. The key is to control risk and achieve steady profits. Follow me, and I will guide you on the right path.