The ones who make the most money in the market are not those who bet the hardest.

Every time I see someone in the trading group sharing screenshots of liquidation, with amounts getting more and more outrageous, I can't help but wonder: why are some people able to survive and profit handsomely in the crypto market for a long time, while the vast majority seem like they are endless chives being cut? This question is actually quite heartbreaking.

My initial capital was only 800 dollars. I'm not a big player, nor an institution, just an ordinary retail investor. But after years of exploration and practice, my account has surpassed a million. Many people don't believe it when they hear it, but what I want to say is: I never sought the huge profits from a single trade; I only care about whether it's the right time to get in.

**Why is liquidation so common?**

In early November 2024, there was a shocking piece of data regarding the drop – over 140,000 traders were liquidated within 24 hours, with total losses amounting to $363 million. It seems like an extreme case, but this kind of thing actually happens every month.

The fundamental reasons for liquidation boil down to two: first, it's a mindset issue; people come to the crypto space aiming for overnight riches; second, it's a tool issue, as excessive leverage amplifies risks that shouldn't be borne.

High-leverage trading sounds tempting—using 50x leverage means that a small amount of capital can control a large position. However, the problem is that the cryptocurrency market is inherently volatile, and price "spikes" (instant fluctuations) are common. With 50x leverage, if the market moves just 2% in the opposite direction, your position will be forcibly liquidated. Additionally, most people have no concept of position management and do not set stop-losses where they should, making liquidation not an accident, but a certainty.

**How to roll from 800U to six figures**

The first stage is to practice and establish a sense of rules. During this period, I deliberately lowered the leverage and even traded spot, just to understand the movement patterns of the market. Many people can’t wait to go all-in with leverage on the first day, which is basically gambling.

The key is to recognize a fact: stability is the true shortcut to wealth. Every reasonable accumulation of small gains eventually compounds into astonishing numbers. And those who are eager for a quick fortune? They often exit at the first major fluctuation.

If you are still using high leverage to gamble, you might want to consider this data: those who are liquidated have an average trading duration of no more than 6 months. Meanwhile, 99% of traders who survive for over a year have learned risk management.