Truth from a Crypto Veteran: Why Do You Always Earn and Then Lose? It’s Just Because You Don’t Fully Understand Three Things

In the crypto market, there is no shortage of people who have “hit big” on a few trades and then completely wiped out their accounts, even losing their entire capital. It may seem like bad luck, but in reality, the cause is not luck – it lies in mindset and trading systems. I have witnessed too many similar stories: – Entering the market with dreams of changing your life. – Catching a wave, with accounts growing rapidly. – Becoming overly confident, trading large, and making impulsive decisions. – And ultimately, returning to zero. The problem is not that you don’t know how to make money, but that you can’t preserve your gains. The Cost of Account Drawdowns Is Greater Than You Think Many people only care about how much profit they’ve made, but overlook the level of account drawdown (drawdown). This is not a psychological issue; it’s a brutal mathematical reality. For example: Account down 20% → need 25% profit to break even Account down 40% → need 66.7% profit to recover Account down 50% → must double the account to break even Once the account drops too deeply, psychological pressure and risk force you to trade larger to recover, trapping you in a cycle of losses with no escape. When the market is highly volatile, the difference between survivors and those eliminated becomes clear: Some enter trades without controlling position size Some do not set stop-losses Some trade purely based on emotions It’s not that the market targets anyone; it’s because their trading systems are inherently flawed. The Biggest Enemy in Trading Is Yourself Trading is difficult not because of a lack of indicators or models, but because people cannot control their emotions. When prices rise, fear of missing out (FOMO) kicks in When in profit, wanting to make more When in loss, refusing to cut and hoping for a rebound When recovered, entering trades continuously to “keep winning” Many think they are analyzing the market, but in reality, emotions are making decisions instead of reason. The only way to escape the psychological trap is to use rules instead of emotions: Have clear entry points Set fixed stop-loss levels Set specific take-profit targets Act when the plan reaches the point, without hesitation When you don’t have to think every time you enter a trade, you won’t be controlled by emotions. Three Levels of Traders and the Path to Evolution After observing the market for many years, traders can be divided into three groups: Group 1: Dreaming of Doubling the Account Always looking for 10x, 20x trades, rushing into trades for fear of missing out. This group often burns through their accounts very quickly. Group 2: Starting to Have a Method Learning from experience, reducing mistakes, trading more systematically but still fluctuating between profit and loss. Group 3: Managing the Account Before Thinking About Profit Not concerned with winning or losing individual trades, only focused on the account curve. This group is the ones who can go the distance. Stable traders do not try to predict tops and bottoms. They only participate when the trend is clear. When the trend is weak, they stay out. A solid structure is needed before increasing position size. Before each trade, they consider the worst-case scenario: “If I lose, how much will I lose? Can I tolerate it?” Only if they can tolerate it, do they enter the trade. Three Principles for Survival in Crypto

1. Regular Investment with Core Assets For most individual investors, DCA (periodic buying) with Bitcoin, Ethereum, and top coins is the safest and most effective strategy. No need to chase the bottom No pressure to time the entry Reduce short-term volatility risk Time in the market is more important than timing the market.
2. Absolute Risk Control Risk only 2% – 4% of your account per trade No project should exceed 20% of total capital Never hold onto losing positions or average down when wrong A long-term surviving trader doesn’t win many trades, but loses very small.
3. Build Your Own Trading System Don’t rely on signals from others. Don’t trust “insider tips,” “secret news,” or “standard picks.” Build a system based on: Technical analysis Trend analysis Capital management Trading journal Record each trade: why entered, why exited, profit or loss. Periodically review win rate, profit/loss ratio, drawdown to optimize the system. Conclusion Crypto indeed offers opportunities to change your life, but only for those disciplined enough to survive multiple cycles. No need to win big. Just avoid heavy losses. No need to trade frequently. Just trade at the right moments. The market is always there. Opportunities are always available. The key is whether you still have capital to participate. If you want to go long-term in crypto, start by developing the right mindset, the right system, and enough discipline to execute. Because in this market, only those who survive will truly win.