I am Brother Bin, transformed from a liquidated leek to a seasoned analyst, telling you a truth: the market always has opportunities, but the principal is not unlimited.
A newcomer just stepping into the cryptocurrency world always thinks that there is gold everywhere. Watching various 'hundred-fold myths' and 'contract riches' in the group, their heart races, fingers itch, wanting to rush in with all their funds immediately.
Brother Bin wants to say a heartfelt truth today: more people lose money in a bull market than in a bear market. Why? Because blind faith and greed make the quickest harvesting machine for leeks.
With the market fluctuating and the sickle sharp, if you just entered the circle, the following few pieces of experience that I exchanged with real money may save your life.
01 Contracts are not your ATM; they are a meat grinder.
Many beginners become obsessed with contract leverage right away, thinking spot trading is too slow. What’s the result? The higher the leverage, the lower the IQ.
I have seen too many people start with 10x leverage, find 20x exciting, and think 50x is enough thrill. The result? A mere 2% 'small fluctuation' in the market can wipe out their account. Remember, leverage does not create risk; it only amplifies risk. You might only lose 1% originally, but under 10x leverage, that 1% fluctuation can leave you with nothing.
Perpetual contracts are relatively suitable for practice, but never touch futures contracts you don't understand. Every trade must have a stop loss. For example, if you have 8000 capital, plan to lose a maximum of 800. Once it hits that line, act decisively and do not linger. Better to take a small loss and exit than to hold on until the end. The outcome of holding on often leads to liquidation.
02 Choosing the wrong platform, all your efforts are in vain.
There are more exchanges that run away in the crypto space than there are truly profitable traders. When choosing a platform, safety is always the priority, followed by transaction fees.
Why only recommend top platforms like Binance? One sentence: the safety of your capital is ten thousand times more important than that tiny rate difference. Smaller exchanges may seem to have lower fees, but the risks of 'pinning', downtime, or even running away are unbearable. Top platforms have strong capital, strict risk control, and ample insurance funds, providing you with an extra layer of protection during significant volatility.
Don't underestimate these 'decimals' in funding rates; under frequent trading, they can quietly eat away most of your profits. Choosing a platform with more reasonable fees increases the probability of your profits.
03 The money earned is from 'cognition', not from luck.
Today you see a certain coin rise by 5% and rush in, but tomorrow a big bearish candle can make you lose everything. Making money in the crypto space relies on strategy and discipline, not courage.
Trends are your friends, and moving averages are mirrors of trends. Don't blindly chase highs and lows. A MACD golden cross and RSI above 50 are relatively safer entry points.
When prices are falling, don’t rush to catch the bottom. Patiently wait for three bullish candles to stabilize before considering an entry. When prices are rising, don’t blindly chase highs; if the price deviates too far from the moving average, it is likely to retrace and consolidate. Those who know how to buy are apprentices; those who know how to sell are masters; those who know how to stay in cash are grandmasters.
04 Position management is your last lifeline.
If you enter with 8000 yuan in capital, how will you use it? Go all in at once? That's gambling, not trading.
My suggestion is: start with 40% (3200 yuan) for testing. If your judgment is wrong and the price drops by 5%, cut losses decisively, keeping losses to 160 yuan. If you can't bear this small loss, it indicates you are not suitable for this market. If you are correct and the price rises, gradually add another 2400 yuan. The remaining money is your lifeline; never exhaust your last bullet.
For example: if you use 3200 yuan and buy 26000 USD worth of BTC with 5x leverage, set your stop loss at 25700 USD (losing 300 yuan) and your take profit at 28000 USD (making 400 yuan). This is planned trading, not emotional gambling.
Brother Bin's final words of truth.
When you enter this market, your primary goal is not to get rich overnight, but to survive. Those who keep saying 'follow my trades and you can tenfold' should be asked how much net worth is left in their own account.
From having nothing to standing firm, my biggest realization is: knowledge is a tool, mindset is armor, and capital management is essential. It’s not complicated, but most people just can’t do it. Follow Brother Bin to learn more first-hand information and precise points in the crypto space, becoming your navigation in the crypto world; learning is your greatest wealth!#加密市场反弹 #美国伊朗对峙 $ETH
