The Three Principles of "Survival" in Crypto Trading: Avoid Full Margin Traps and Manage Risks Effectively

In the crypto market, many new investors are often attracted by opportunities for “high profits, quick turnover.” One of the most common and dangerous mistakes is using full margin and high leverage. Just a small fluctuation can cause the entire account to evaporate in a matter of minutes, resulting in an extremely heavy feeling of “account evaporation.” To avoid falling into this situation, there are three important principles that any trader should adhere to: Principle 1: Manage your capital ratio – Don't put all your eggs in one basket. One of the most common mistakes is to put all capital into a single trade. The safe rule is not to exceed 5% of the total capital for each order. For example, if the total capital is 5,800 USDT, you should use a maximum of 290 USDT for a 4x leverage order. With this method, the account can withstand price fluctuations of up to 25% without being liquidated, increasing risk resistance nearly 7 times compared to using full margin. The crypto market is very volatile; “diversifying your investments” helps protect capital and reduce psychological pressure when prices fluctuate significantly. Principle 2: Stop-loss is like breathing – Indispensable Lack of a stop-loss means putting yourself in danger. A reasonable stop-loss helps to cut losses in time, preventing a small loss from turning into a financial disaster. For example, with 290 USDT, setting a stop-loss at 1.5% ( equivalent to 4.35 USDT) will help limit losses, avoiding the ambition of “holding the order to recover” which leads to significant losses. This principle applies to all transactions: cut losses early, accept a small loss to preserve the majority of the capital. Principle 3: Respect the ambiguous phase – Empty position is also a strategy The market does not always have a clear trend. When prices are moving sideways, with narrow fluctuations that are hard to predict, forcing trades can lead to significant losses. The solution is to maintain an empty position (empty position), waiting for a clear opportunity. Even though there is a feeling of “itchy hands”, restraint and observation help avoid unexpected fluctuations, preserving capital for greater opportunities later. The actual result of adhering to the three principles Traders who diligently adhere to capital management, set stop-losses, and know when to stay out of the market will see their accounts grow steadily without experiencing the “whirlwind” of intense volatility. These accounts typically achieve profits of 50-70% within a few months without falling into a state of stress due to short-term fluctuations. In summary Divide your capital - Avoid full margin, reduce risk. Strict stop-loss - Cut losses in a timely manner, keep safe. Respect the ambiguous phase - When the market has no clear trend, stay out to preserve capital. These principles do not promise quick profits, but serve as a shield to protect capital, helping traders to survive in the volatile crypto market.