After struggling in the crypto world for so long, I have experienced countless setbacks and losses. Each experience is like a sharp blade, piercing me and prompting constant reflection. Now, let me review those painful lessons and think about how to avoid risks in the future.

1. Blindly chasing 'Dogecoin', losing everything

I once impulsively jumped into those so-called 'Dogecoin' projects. At that time, I only saw the fantasies of quick wealth brought by false propaganda, completely ignoring the intrinsic value and risks of the projects. As a result, these 'Dogecoins' are now worthless, and my investment has gone down the drain. This made me realize that one should not be blinded by temporary hype in the crypto world. It's necessary to conduct thorough research on the projects, understand the teams, technology, application scenarios, etc., otherwise it's just making a joke out of one's own funds.

2. High-Leverage Contracts, The Nightmare of Liquidation

In pursuit of high profits, I have repeatedly attempted high-leverage contract trading, with leverage ranging from 125 times to 10 times. At first, watching the numbers in my account grow rapidly, I was immersed in dreams of getting rich quickly. However, with even slight market fluctuations, the liquidation alarm sounded relentlessly, and ultimately my account balance went to zero. Now, I deeply understand that high-leverage contracts are a double-edged sword; while they can bring huge returns, risks also increase exponentially. Now, I only dare to use 2x leverage at most, constantly reminding myself to respect the market and control risks.

3. Bottom Fishing LUNA (now LUNC), three buys, three losses

Once, when the price of LUNA (now LUNC) plummeted, I naively thought it was a good time to bottom fish, so I entered three times. But reality gave me a heavy blow, with each bottom fishing resulting in a 99.9% loss. When I looked back at the K-line chart, I finally understood the cruelty of the market and my own ignorance. This made me realize that bottom fishing is not an easy task; one cannot blindly enter just because the price has dropped; a comprehensive analysis of market trends and project fundamentals is necessary to avoid falling into the 'bottom fishing trap.'

4. Missing ordi, Regrets Unending

When ordi was just launched, I was very optimistic about its prospects and even shared my views in my social circle. Unfortunately, I had all my funds tied up in BTC at that time, missing the excellent opportunity for ordi to rise from over 3 to over 70. This made me realize that in the cryptocurrency space, one must have keen market insight and decisive decision-making ability. One cannot put all eggs in one basket; assets must be allocated reasonably to seize every possible opportunity.

5. Rolling Position Operation, Greed Leads to Defeat

I once tried to trade using a rolling position strategy, with as little as 5 times the return and up to over 80 times at the highest. However, due to my lack of understanding in reasonably allocating take-profit points and my blind pursuit of higher returns, I eventually lost all my principal. Even now, I still believe that if I had taken profits in batches along the way, it might not have reached over 80 times the return, but I also understand that greed is a major taboo in trading. In future trades, I need to learn to set reasonable take-profit and stop-loss points, lock in profits in a timely manner, and avoid losing everything due to greed.

6. Strategies to Avoid Risks in the Future

After experiencing these painful lessons, I have summarized the following strategies to avoid risks in the future:

  1. In-depth Research on Projects: Before investing in any cryptocurrency, conduct comprehensive and in-depth research on the project, understanding its technical principles, application scenarios, team background, etc., to avoid investing in 'air coins' that have no actual value.

  2. Reasonable Control of Leverage: Use leveraged trading cautiously, choosing low-leverage options to reduce risk. At the same time, set stop-loss points properly; once the market trend deviates from expectations, stop-loss promptly to prevent further losses.

  3. Avoid Blind Bottom Fishing: Do not blindly bottom fish based solely on price drops; consider market trends, technical analysis, and other factors to determine if a bottom has truly formed. At the same time, control your position size to avoid over-investing at once.

  4. Diversified Asset Allocation: Do not concentrate all funds in one cryptocurrency or one trading strategy; diversify asset allocation to spread risks. You can invest in different types of cryptocurrencies, such as mainstream coins and potential coins, and adopt different trading strategies, such as long-term investment and short-term trading.

  5. Stay Calm and Rational: During trading, remain calm and rational, and do not be swayed by market emotions. Avoid making erroneous decisions due to greed and fear, and strictly follow your trading plan and strategy.

Trading cryptocurrencies is about repeatedly doing simple things; sticking to one method for a long time until it becomes second nature. Trading can be like any other industry; practice makes perfect, allowing one to make every decision without hesitation.

This year marks the seventh year of my cryptocurrency trading journey; I started with 10,000 and now trade to support my family! I can say that I have tried 80% of the methods and techniques in the market. If you want to make cryptocurrency trading a second career to support your family, sometimes listening and observing more will reveal things outside your current understanding, at least saving you 5 years of detours!

Follow me @加密大师兄888 Many souls have perished on the crypto road; my senior only guides those with fate, accepting disciples...