The root cause of account burning is not due to wrong predictions, but rather putting the entire fortune into a single bet.

In the crypto market, many people believe that “just guessing the right direction will make you rich.” But the harsh reality is much more brutal: most accounts are wiped out not because they misread the trend, but because they put all their capital into a single trade, leaving no room to correct mistakes when the market just needs a slight shake. Big crashes in the past have taught me a costly lesson: survival is more important than victory. When you still have capital, you still have a chance. Once your account is wiped out, all correct predictions afterward become meaningless. Below is a new article summarizing the core principles that help me go the distance in this highly volatile market. Three Pillars for Sustainable Trading in Crypto

  1. Protect Profits: Let Multiplying Gains Be Your Armor The most common mistake traders make is: taking profits but not closing the position, thinking the price will go further. The result is often seeing profits evaporate right before your eyes. The principle I always follow: When entering a trade, set beforehand: Stop loss (cut loss)Take profit (take profit)When the account increases by 10%: Withdraw 50% of the profit to a cold walletRemaining part used to continue trading This approach creates two advantages: If the market continues to run, you use “profit money” to multiply your accountIf the market reverses, you only lose part of the profit, the principal remains safe Make profit withdrawal a mandatory habit, just like eating meals on time.
  2. Divergent Trading: Turn Sideways Markets into Money Printing Machines About 70–80% of the time, the crypto market neither surges nor crashes deeply but moves sideways. For most traders, this is the easiest phase to blow up their accounts. But for strategic traders, this is a gold mine. Multi-timeframe strategy: Daily frame: identify the main trend4-hour frame: identify support and resistance zones15-minute frame: find optimal entry points On the same coin, you can: Place one trade following the main trendPlace another trade catching a rebound in overbought or oversold zones Each trade risks only 1–2% of the account, but aims for a profit 4–5 times the stop-loss. When the market is highly volatile, always have a ready plan to respond instead of panicking.
  3. The Philosophy of Cutting Losses: Accept Small Scars to Ride Big Waves A little-known truth: no one trades winning forever. I only have about a 35–40% win rate, but I haven’t wiped out my account for many years. The reason is: Each trade risks very littleLarge wins are many times bigger than losses For example: Lose $1 when wrongGain $4–$5 when right Just catching a few big waves each year surpasses bank interest. Remember: A high win rate does not mean profitability. The profit/loss ratio is what determines whether you can survive or not. Three Survival Rules in Real Combat
  4. Divide Capital into Small Parts Divide total capital into 10 partsUse only 1 part per tradeKeep a maximum of 3 trades open at the same time Even if you lose 3 consecutive trades, over 90% of your capital remains.
  5. Cut Emotions Losing 2 trades in a row: stop trading immediatelyDon’t revenge tradeDon’t trade when angry, excited, or tired Psychology is the biggest enemy of traders.
  6. Turn Profits into Real Assets Every time your account doubles: Withdraw 20% of the profitTransfer to stable assets like bonds, gold, or cash Crypto only truly has value when you turn it into real-world purchasing power. Conclusion The market is not afraid of you guessing wrong. It only fears that you don’t know how to protect yourself. Smart people are not those who hit every shot, but those who know they can miss, so they always wear armor before entering the battlefield. In crypto, you don’t need to become a genius. Just survive long enough, and you will have a chance to get rich. Discipline is the weapon. Risk management is the armor. And patience is the only path to financial freedom.
View Original
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
  • Reward
  • Comment
  • Repost
  • Share
Comment
0/400
No comments
  • Pin

Trade Crypto Anywhere Anytime
qrCode
Scan to download Gate App
Community
  • 简体中文
  • English
  • Tiếng Việt
  • 繁體中文
  • Español
  • Русский
  • Français (Afrique)
  • Português (Portugal)
  • Bahasa Indonesia
  • 日本語
  • بالعربية
  • Українська
  • Português (Brasil)