2026-01-12 19:21:12

Having been in the crypto world for so many years, I've seen too many people come in full of hope and leave with their tails between their legs. Every time I meet a newcomer, they ask the same question: "Why can't I make any money?" Speaking of which, most people fall into similar traps, and there are four main ones they can't escape.

**First Trap: Entering and exiting ten times a day**

Some treat trading like a casino, clicking away from open to close. But have you calculated your trading fees? How much is slippage eating up? If you keep operating like this, your principal will shrink like a funnel day by day. Truly good opportunities require you to sit tight and wait. Over-trading results in becoming a "cash machine" for the market—working for the exchange.

**Second Trap: Heavy position and high leverage**

The most aggressive approach is to put 80% of your assets into one coin and open 10 to 20 times leverage, dreaming of a quick turnaround. I don't deny that leverage can amplify gains, but risks also multiply. A slight market reversal could wipe out your account. I've seen too many people disappear this way.

**Third Trap: Take profits and run, hold on during losses**

When you make a little profit, you can't wait to cash out, and when the market keeps rising, you feel anxious. But if you lose, you stubbornly hold on, hoping for a rebound. Even more absurd is adding to your position after breaking key levels, leading to significant loss of capital and a complete loss of the chance to turn things around.

**Fourth Trap: No stop-loss at all**

Trading based on impulse and gut feeling, with no risk management? Never heard of it. Still naively believing the market will follow your script. But the crypto world is 70% unpredictable and 30% human-made. A sudden event can cut your position in half. Not setting a stop-loss is like driving without a seatbelt—inevitably, something will go wrong.

The core rule for surviving in the crypto space is simple: cut out ineffective trades, stay away from the lure of high leverage, treat take-profit and stop-loss as iron laws, always respect the risks, and protect your principal. Only then can you have a chance to make money.

View Original

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.

14 Likes

Reward
14
5
Repost
Share

Comment

0/400

BuyTheTop

· 01-14 16:51

Oh no, the third pitfall hit me directly. Making money and running, losing and holding on stubbornly, it's truly incredible. --- The analogy of working for an exchange is perfect. When I stop and think, I realize I'm actually giving money to the platform. --- 20x leverage is like betting your life with money. Friends who have gone to zero are now no longer trading coins. --- Stop-loss is easy to talk about, but when it comes to critical moments, your mentality collapses. Everyone goes through this. --- What annoys me the most is adding to a position after a decline. Isn't that reckless gambling? You've lost your principal and still want to turn things around. --- Honestly, it's all about one thing: greed. --- Overtrading is a real issue. When I have free time, I want to trade, but the fees eat up all the profits. Now I force myself to make at most three trades a week. --- No matter how much I emphasize the safety of the principal, if the account hits zero, the game is truly over. --- It seems that nine out of ten people in the crypto world fail due to their mentality; technical skills are secondary. --- Not setting a stop-loss is a gambler's mentality. Sooner or later, you'll have to settle the account.

View OriginalReply0

GasFeeCrybaby

· 01-14 11:18

Haha, ten times a day, that's how I lost money, with a reckless mindset in the late stages of gambling addiction. Heavy leverage and large positions are truly a death sentence that even the Grim Reaper can't save you from. You're so right, it's just lacking a proper stop-loss mentality. When I make a profit, I want to run; when I lose, I add more positions—this mindset is unbelievable. Not setting a stop-loss is like gambling, brother. I only just now understand.

View OriginalReply0

HodlAndChill

· 01-12 19:51

To be honest, the most heartbreaking is still the third pit, make money and run, lose and endure, and when the mentality collapses, it explodes. The set of frequent trading is really the favorite of the exchange's clients, with high profit from fees. Leverage is just a ruthless thing that eats people without leaving bones, having seen too many people end up in a total loss after a all-in. Stop-loss, no matter how much you talk about it, is basically a mental construction; most people simply can't do it. I've been in the crypto circle for ten years, and the ones who survive are those who can sit still, not those who chase every rise and fall. Principal is the key, holding onto it is more important than anything else.

View OriginalReply0

AirdropHunterZhang

· 01-12 19:49

That's right, I was the one who died in the third pit. I feel frustrated for making profits and running, and still holding on when losing. Now the principal can no longer be recovered. Friends who go all-in, listen up. Without stop-loss, you're gambling with your life. I'm still trying to make back my money by freeloading on airdrops. Doing it ten times a day is just working for a pancake; it's better to quietly mine for electricity costs and be stable. Really, I've seen too many people wipe out just because they leverage their dreams for a turnaround, only to lose even their principal in the end. I made these mistakes a couple of years ago. Now I only reinvest in small projects, participate in interactions and airdrops, and only engage with high cost-performance projects. People who can't sit still definitely can't make money. I'm currently in the stage of quietly making a fortune, and I don't tell anyone. I've seen people disappear because of each of these four pits, especially the high leverage one. Their accounts really vanish in an instant.

View OriginalReply0

NFTRegretter

· 01-12 19:43

Honestly, I was really hit by the part about heavy positions and leverage; I died once like that last year. Working for an exchange is really tough, the transaction fees can grind you to death. Making a quick profit and then running is the worst habit; watching the market take off right in front of you feels incredible. Not setting a stop-loss is basically asking for death; now I’d rather lose a little than have no bottom line. You’re right, essentially it’s just a lack of composure; mindset determines everything. Being able to sit still is really the hardest part, that’s the biggest trap. Leverage is just a deep pit, a 100% chance of falling in. The lessons learned in the crypto world are way too damn expensive. I think I’ve stepped into all four of these traps; looking back now, I’m a bit scared. Honestly, it’s just inner demons at work; rationality can never beat greed.

View OriginalReply0