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Five Years in Crypto: Why Do You Earn Less Than You Lose? Lessons Paid in Real Money
A good knife is not the sharpest, but the one that cuts at the right spot. Last night, a long-time follower messaged me, voice full of exhaustion: “I’ve been in the crypto market for three years, why do I always see losses happen faster than gains?” After reading it, I remained silent for a long time. Because in that question, I saw my past self. The truth is, it’s not that we are less intelligent. It’s just that this market was created to teach those overconfident a costly lesson. The traps I’ve fallen into, sometimes, are even more numerous than the paths others have taken. Making Money Slowly, Losing Money Fast I still remember very clearly the period before I made my first big profit. At that time, I had 20,000 USDT. Every time my account increased by 5%, I would rush to take profits, afraid of losing. The result was, as soon as I sold, the price shot up 40%. That feeling was so unpleasant that I didn’t want to talk to anyone all day. Another time, I decided to “hold a little longer.” But just one strong red candle wiped out all my profits, even eating into some of my capital. This feeling was even more painful than a margin call, because you think you’re about to win, but it turns out you’re losing even more. After many such experiences, I finally understood one thing: in crypto, it’s not the person who makes money quickly who wins, but the one who loses money slowly. The Traps I’ve Fallen Into There was a time when I considered myself a “source of inside information.” Today, I hear that this coin is about to skyrocket, tomorrow another project is preparing to multiply several times. And the result? When the price rises, I’m not there. When I get in, the price reverses and drops. When it drops, I don’t dare cut losses, and after cutting, it rises again. I almost became a “reverse indicator”: buying everything that drops, selling everything that rises. The peak was when I went all-in on a project promoted by a “celebrity in the industry.” Not long after, the team disappeared, and the project nearly hit zero. That moment, I finally woke up: blindly following the crowd is the fastest way to become someone paying tuition. Not to mention leverage – a double-edged sword. I once used 5x leverage with Bitcoin and won a few trades, feeling like a genius. Then I increased the leverage, boosted my confidence. Just one night of shakeout, my account was wiped out, and half a year’s worth of profits evaporated in minutes. Only those who have experienced this pain understand. How Have I Changed? The real turning point started when I stopped gambling and began thinking like a trader. I no longer chase every “hot trend,” but focus on core coins like Bitcoin and Ethereum. They don’t double or triple overnight, but they have survived many cycles and follow clearer patterns. I also gave up trying to catch the bottom or predict the top. Instead, I wait for a clear trend before entering. The price may not be the cheapest, but certainty is always more important than a low price. When the market drops deeply and panic selling has occurred enough, I gradually deploy funds, without trying to catch the bottom or betting on a technical rebound, just patiently waiting for the market to stabilize. Most importantly, I learned to sell during upward trends. With each strong rally, I withdraw some capital and lock in profits. The rest is left to the market to decide. Thanks to that, even when prices correct, I’ve already secured my profits. The “Rough but Effective” Principles That Keep Me Alive I don’t rely on any sophisticated tricks, just a few very simple principles that have saved me countless times: