Can’t hold your spot, and then your contract gets blown up—at the end of the day, it’s just one sentence: you never really figured out how much you’re actually able to lose.

A lot of people jump in going all-in right away. When it pumps they want to sell, and when it dumps they try to hold on, and in the end they end up pleasing neither side. Actually, position management isn’t that mysterious. In plain language: **treat your position as the money you can afford to lose in your wallet, not the money you think you can earn in your dreams**.

When I do NFT lending and collateral myself, I spend way more time working out liquidation thresholds than trying to predict whether prices will go up or down. Because I know: as long as you don’t get blown up, opportunities will always be there. Those people calling for more re-collateralization, shared security, or compounded returns—on the surface it looks fancy, but in plain terms it’s basically nested “Russian dolls”: you stack returns layer by layer, and you stack risk layer by layer.

Anyway, here’s what I do now: first set an amount that you wouldn’t feel bad about losing, then place bets on a position sized at half of that amount. Keep the rest aside, and only after the market really drops through do you slowly add back.

It’s not that I don’t want to make money—I’m just afraid I won’t be able to hold up before I can.