In the crypto world, the harshest lesson is often not technical analysis, but understanding of principal capital. Discussions about $BTC and $ETH investment opportunities are everywhere, but few truly answer the most fundamental question: why do some people make a fortune while more and more people lose deeper and deeper?

The answer may be surprisingly simple — principal capital is the only non-renewable resource you have in the market.

Countless people dream of doubling their wealth overnight but overlook a irreversible mathematical reality. Losses and recovery are never symmetrical. Losing 10% only requires an 11% gain to break even; but losing 30% means you need a 43% gain to return to the original point; what about 50% loss? You need to double your capital. The most terrifying is that once losses reach 70%, you need a 233% surge to get back to the starting point.

This is not scare tactics; it’s cold, hard math. Small losses can be recovered through subsequent operations, but once you fall into a big loss, you’re basically out. Even with the best opportunities right in front of you, you have no bullets left to participate.

Many people misunderstand stop-loss as a trading technique, but that’s a huge misconception. The true meaning of stop-loss is to preserve your life.

It’s not about whether this trade makes or loses money, nor does it determine if you can get rich overnight. The only purpose of stop-loss is to keep you alive in this market, waiting for the next opportunity. Traders who cling to hope and refuse to cut losses often follow the same script: small losses turn into medium losses, medium losses evolve into big losses, and the final outcome is nothing but complete exit.

Look at those who have traded for a long time; their common trait isn’t chart-reading or bottom-fishing, but sensitivity to risk. Admitting mistakes proactively and cutting losses decisively is not cowardice, but a form of clarity and strength.

In this volatile market, surviving longer is far more important than making quick gains. Those who can protect their principal have the qualification to wait for truly market-moving opportunities. Opportunities are indeed plentiful; the market will always have the next wave. But if your principal is gone, no matter how big the opportunity, it’s meaningless to you.

There’s no secret to getting rich overnight, only a principle to stick to: do everything possible to stay alive in the market. I’ve personally experienced this path, knowing what it feels like to grope in darkness, almost being eliminated. Today’s approach is simple: treat “not losing big money” as the most sacred mantra in trading.

Market fluctuations continue every day; the key is to learn how to use the right rules to navigate each cycle.