Martingale: playing with fire in the cryptocurrency market

I have been observing this strategy – Martingale – for a long time. You know, sometimes it seems that some traders are willing to do anything for profit, even if it resembles gambling in a casino! And to be honest, this strategy seems just like that to me – crazily risky.

What is this Martingale anyway?

The essence is simple: every time you lose, you double your next bet. Theoretically, this allows you to recoup all previous losses with your first win. Sounds tempting, doesn’t it? But let’s be honest – this is financial suicide for most traders!

The whole idea came from French card games of the 18th century. Later, mathematician Paul Lévy theoretically proved that with infinite money, this strategy always yields a profit. The key word is INFINITE. And who has that? I definitely don’t!

How It Works in the Crypto Market

Imagine: you invest 1000 rubles in Bitcoin. The price drops, you lose. What do you do? You invest 2000! Again a drop – 4000! Then 8000, 16000, 32000... And so on to infinity or until your account is empty.

Theoretically, when the price finally rises, you should not only recover all losses but also make a small profit. But here’s the question – will you have enough money to wait for that moment?

Why do people still use this?

Honestly? Because it's simple! No need to analyze charts, study fundamentals – just double the bets and wait. No emotions, no complicated decisions. And people also believe in probability theory – sooner or later, luck will come!

Moreover, unlike a casino, you rarely lose everything in the crypto market. Even when a coin crashes, there is still some value left.

Exponential risk is a real nightmare

Imagine: you started with 1000 rubles and had 10 consecutive losses. The next bet should be... 1,024,000 rubles! Do you have that kind of money? I don't. And this is where all the beautiful theory crashes into reality.

Moreover, even if a win occurs, the profit will be laughable compared to the risks. Are you risking a million to earn a thousand? Seriously?

The Dumbest Mistakes Traders Make

People start with large sums, having little capital. They do not set stop-losses. They do not determine in advance when to stop. And the dumbest thing is investing randomly, without research, relying only on Martingale's "math."

I have seen traders lose their entire fortune, stubbornly believing that the next bet will fix everything. It's a road to nowhere.

Does this even work?

In the short term and with a limited number of doubles - it's possible. In the long run - practically guaranteed ruin.

Yes, some modify their strategy by deducting the cost of falling coins from new investments. But the essence remains unchanged – it is still a game with enormous risks.

My verdict

Martingale is not an investment strategy, but a gambling game on steroids. Yes, it is mathematically justified for infinite capital, but for real people, money is very finite.

If you still want to try, start with small amounts, clearly define your loss limit and exit point. And for the love of everything holy, do not believe that this is a safe way to make money!

In the world of cryptocurrencies, there are dozens of more sensible strategies. Martingale is more suitable for those who want to test their nerves rather than build real income. Trust me, I've seen enough ruined traders to know – this "strategy" more often leads to bankruptcy than to wealth.