2026-01-06 14:20:15

Over the past few years in the crypto world, I’ve gradually realized a harsh truth: the main culprit for account shrinkage is often not how fierce the market itself is, but rather our emotions and trading habits. Especially when the principal isn’t yet substantial, the anxiety that "I must trade frequently to turn things around" becomes a gold-eating beast for the principal.

**Frequent trading is the beginning of chronic account decline**

Many beginners can’t distinguish between "being active" and "being diligent." But in crypto trading, high-frequency operations often mean costly trial and error. I once knew a trader with a technical background who was indeed strong in technical analysis, but during the 2018 bear market, he kept trying to bottom-fish and top-tick at various levels, directly halving his principal. His later reflection was very profound: "Market opportunities are always there; it’s just that I was too greedy, wanting to catch every wave, which instead led to repeated faceplants by the market."

What truly widens the gap in accounts are those seemingly "inactive" decisions—grabbing the few high-probability opportunities in a year. For example, after the extreme market in March 2020, those who dared to gradually build positions at the bottom later enjoyed significant gains. In contrast, most people at that time either got scared and cut losses or hurried to recover their capital by frequently adjusting their positions, ultimately missing out.

**Holding cash in hand gives you real choice**

Keeping some cash on hand may seem to have a high opportunity cost on the surface, but it’s actually the most effective tool against market uncertainty. When market sentiment is at its craziest, many people, afraid of missing out, go all-in, only to see their mindset collapse when a correction occurs. Those who still hold cash, on the other hand, can stay calm and wait quietly for opportunities created by emotional sell-offs. At this moment, their cash becomes a true weapon.

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ForkThisDAO

· 01-07 22:32

That hits too close to home. In 2018, I was that person with strong technical analysis but frequently bottom-fishing, turning 200,000 into just 80,000. Holding cash is truly wise. Now I have 50% cash and 50% positions, and my mindset is so much better. Frequent trading is just paying tuition repeatedly; this lesson is bloodily clear. Back then at 312, I also cut losses. Even now, I still regret it. The more I trade poorly, the more I want to trade; the more I trade, the worse I get. This is the curse of the crypto world.

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0xLostKey

· 01-06 14:49

Ah, that hits too close to home. I am that fool who frequently bought the dip in 2018. Now having no cash is even more uncomfortable than having no coins, really. The moment of going all-in with the entire position is often the last frenzy, and it's too late to regret. Wait, so retail investors really can't make money, or are we just here to pay tuition? Honestly, I only now understand the importance of keeping cash, I never thought about it before. Frequent trading really is like gambling; if you can't change this habit, you really can't play the game.

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PensionDestroyer

· 01-06 14:49

Wow, frequent trading really is the slow poison for an account. Well said. Either the market is crazy or it's just your own reckless moves, that hits hard. That wave at 312 with no action actually ended up winning; honestly, I still regret it. Holding cash really works; it feels like the overall mindset can be stabilized to a higher level. No doubt about it, but executing it is super difficult. Who doesn't want to trade frequently? This analysis is thorough; I have a similar story from 2018 about that guy. Mindset determines everything; technical analysis alone is useless. Holding cash and waiting for opportunities—I'm starting to believe this logic now. Anxiety really can lead people into traps; every time, it's the same ending. Lying flat on the surface seems to be the most badass move, so ironic.

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MerkleMaid

· 01-06 14:48

Damn, I am the person who got called out in 2018, and now I finally understand what "less is more" means. Honestly, I still can't resist the urge sometimes, but saving some cash has saved me several times. This article is so heart-wrenching; every sentence is about me. Frequent trading is just paying tuition; you have to suffer big losses to truly understand. Friends who didn't go all-in during the 312 wave are now financially free. And me? I already cut my losses and sold. The key is that I can't control that sense of anxiety, always feeling that not trading is a waste. Keeping cash is really a skill; watching others go all-in and take off makes it hard for me to wait.

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SchrodingerAirdrop

· 01-06 14:42

You're really right. I was heavily exploited by frequent trading last year, and over the course of a year, the fees ate up more profit than I made. I now have a deep understanding of holding cash. Going all-in on FOMO before was truly suicidal. Now, when I have no money, I can only watch opportunities pass by. Technical analysis is useless; it's better to just stay calm and wait for opportunities. During the 312 dip, I avoided bigger losses simply because I didn't have money. Making money isn't about working hard; it's about being able to hold back.

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BloodInStreets

· 01-06 14:34

You're right, but how many people can actually do it? Most people are constantly cutting positions and self-sabotaging. --- That 312 crash I had no cash on hand, watched the blood chips appear right before my eyes, still can't forget that feeling. --- That's why retail traders always buy the dip halfway up the mountain. No matter how strong your technical skills are, they're useless if you can't get past the psychological barrier. --- Cash is king, but it's easier said than done. When you see the market taking off, you just can't sit still. --- I get the brother who times the bottom and top perfectly - greed really does eat up all your gains. The market's always there, opportunities are always there, it's just that human nature can't overcome it. --- Instead of frequent trading, just lie back and wait for the bottom - easy to say, but executing is truly soul-crushing. --- Days without cash on hand are like waiting to die. Opportunities everywhere but you can't take a single one. That's frustrating as hell.

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StakeOrRegret

· 01-06 14:28

It's so heartbreaking. That frequent operation segment directly hit my pain points. Just last year, I spent thousands on fees, and I still can't control the urge to move. Haha, this is me. From going all-in with full positions to now learning to keep some cash, the feeling of recovery is really different. I also built a position at the bottom during the 312 wave, but later I panicked and cut it. Thinking back now, it's absolutely crazy. My initial strategy was correct, but emotions took over and ruined it. Having no cash means being led by the market, and that's the truth. The more you operate, the more you lose. I truly believe in this rule. Honestly, when I first entered the circle, I just wanted to turn things around quickly. Now I think I’ve learned to be a bit more thoughtful, haha. Save some bullets for big opportunities. It sounds easy to say but hard to do. I'm still learning to be patient now.

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