Regarding the dream of making money in the crypto world, I've heard countless versions of stories. The idea of "small investment for big returns" is the most alluring, but reality is often harsher—most people end up losing their capital in the end. Today, I want to share a real case that reveals some of the easiest pitfalls in crypto trading.

**Not a Few People End Up Losing It All**

When a friend came to me, his initial $3,800 had already been cut in half. His eyes looked desperate: "Can you help me turn it around? If I make money, we split it 50/50." My response was straightforward: "It's not about sharing the profit. It depends on whether you can discipline yourself and stick to your rules."

His problem is quite common—after several liquidation events, the mind tends to heat up. The desire to quickly recover losses can lead to the dumbest decisions. High leverage acts like a magnifying glass, clearly exposing greed and fear. One major exchange's liquidation logic is particularly ruthless: a 10% price drop with 10x leverage, and the position is gone instantly. That guy was exactly like that—holding a large position chasing a high, no stop-loss set, and got wiped out with a single spike.

**Trying with 7,000 Yuan as the Last Attempt**

Speaking of which, I’ve also been through times with no money. At that time, I only had 7,000 RMB, which I converted into about 1,000 USDT. My goal was clear: this is the last chance.

*Phase One: Small-scale Trial and Error*

Start with 200 USDT, only trade strong coins. Double up and then exit immediately; if I lose 50 USDT, I cut it decisively. After doing this three times with small wins, my capital grew to 500 USDT. Then I forced myself to stop for a day—more important than any technical analysis is calming the emotions.

*Phase Two: Divide and Conquer*

Split the account into two parts. The short-term part focuses on hot assets, entering and exiting quickly. For meme coins with explosive gains, I only take about 20% profit before selling, never holding on to a winning trade. The trend-following part involves dollar-cost averaging into BTC and ETH, only following the larger cycles, ignoring daily fluctuations.

The benefit of this approach is that even if I lose everything in short-term trades, the long-term trend positions can withstand the storm. When people are overly excited, they are most prone to losing control, so setting limits in advance is essential.