Q: Where do you think the fundamental difference between knockoff coins and mainstream coins lies, and are there different trading rules for the two when opening positions?

My answer might not be so philosophical, just eight words: Mainstream depends on fate, knockoffs depend on life.

First, let's talk about the difference

Mainstream coins (BTC/ETH) are like market indices, anchoring sentiment to macroeconomics—today’s Powell FOMC dovish, risk appetite rises, mainstream coins steadily rise; Iran-U.S. sign a memorandum of understanding, geopolitical tensions ease, mainstream coins continue sideways. Their rhythm is predictable, bull and bear cycles are obvious, even if caught, holding on usually brings you back.

What about altcoins?

99% are zombies, only hot spots can fly.

For example, today’s LAB, up 19.46%, because it’s the second biggest gainer on the new coin list, trading volume surged, market sentiment boosted it up. But it has no fundamentals backing it, purely capital game, pumping and dumping without reason—I shorted at 11.2, it shot up to 15.7, floating loss reached -401%, forced liquidation price 29.8, completely detached from technicals. That’s an altcoin: stabbing the needle until you doubt life, news (FOMC dovish, institutional liquidity narratives) just push it along, the real driver is the market manipulators drawing lines.

My trading discipline learned through painful losses

1. Mainstream coins: low leverage, heavy positions, trend following.
I only use 3-5x leverage on mainstreams, look at daily trends.
Hold as long as the trend isn’t broken, sell immediately if it breaks, no holding through losses.
2. Altcoins: light positions, short-term, strict stop-loss.

But I violated all these this time. ZEC: shorted for three days, entry at an average of 470.45, 50x full position, held until 474.44 before closing, loss of 44.9%. Lesson: don’t place orders waiting, watch the chart, cut losses immediately when hit.

· LAB: even more outrageous, 10x full short, no stop-loss, currently floating loss -26.96 USDT, margin left only 9.41, loss rate -401%. I treated it like a mainstream, but the needle stabbing of altcoins can wipe out all margin.

The correct altcoin discipline should be:

· Total position no more than 5%, leverage no more than 3x;
· Set hard stop-loss (e.g., -5%), close immediately when triggered;
Mainstream: low leverage, heavy positions, trend is king;
Altcoins: very light positions, short-term, strict stop-loss, only chase hot spots, not life.

I’m still holding the LAB short, but after losing this position, I will definitely engrain this discipline into my trading software.

Don’t copy me, learn from CrowleyZhou—he’s right, small funds can gamble on altcoins, but with low success rate; big funds should stick to mainstream.

I have little capital but gamble recklessly, getting hit from both sides.

May heaven have no needle stabbing #我的Gate交易时刻