‍#Gate广场新手村第三期

My ten insights after losing a large sum of money

As an old investor who has been in the crypto space for more than ten years and bravely ventured into the novice village, I would like to share my growth experience. After entering the crypto world in 2014, I gradually understood the basic knowledge of cryptocurrencies through two years of exploration. Starting in 2016, I hopped onto the fast train of cryptocurrency dividends, and my personal wealth began to accumulate rapidly. In the craziest year of 2017, there was almost a new altcoin that multiplied several times every week, and even with spot trading, I made a fortune. My confidence grew, and I thought I could master this market. However, nothing lasts forever; when the bear market hit in 2018, I faced my first major liquidation. Naturally, I was unwilling to accept this, so I kept opening positions, only to end up losing more than I gained. In 2019, institutions began to enter the market, and the early dividend period of the crypto space came to an end. Yet, I remained persistent in trading, and eventually, all the assets I had accumulated over the years were wiped out.

After losing a significant amount of money, I chose to open a small account on Gate again, starting from scratch. One reason is that I am optimistic about Gate's rapid development over the past two years, with many high-quality coins being listed, and I want to take advantage of the thriving ecosystem of the platform; the second reason is to use my main account to do the right thing—holding coins, and using my small account for minor operations to summarize experiences and see if I can return to the peak. After a long period of refinement, here are ten personal experiences I have summarized:

1. Always have a positive outlook on Bitcoin. Whenever you see a sharp drop in Bitcoin at any time, the first thing to think about is how to buy the dip, rather than how to short it.

Although the cryptocurrency market is a high-risk investment, it is important to remain rational, allocate your positions wisely, remember to withdraw profits, and not invest all your funds in the crypto market.

3. Reasonably plan your position, you can use the "33 rule" principle: 30% of your position for stable income, such as regular investments in Bitcoin or staking mining, purchasing GUSD financial products, etc.; 30% of your position for buying quality coins, such as ETH, SOL, DOGE, etc.; 30% of your position for investing in high-risk coins, such as new coins, AI concepts, and RWA concepts; finally, reserve 10% cash to respond to other opportunities that may arise at any time.

4. Contracts can be made, but it is important to reasonably plan the position ratio between spot and contract trading, and not to invest all funds into contract trading.

5. In contract trading, it is important to control your position; never over-leverage at any time. Low-risk compound interest is the key to long-term survival.

6. Contract trading can easily lead to addiction, especially after experiencing significant losses. Immediately distance yourself from trading; never go all in when feeling overwhelmed. This is also a counterintuitive aspect of contract trading.

7. For deterministic markets, try to minimize the number of operations and extend your holding time. Frequent trading will only increase your costs, and occasionally adjusting your strategy is also beneficial.

8. If you are a long-term holder of coins (Bitcoin), you may not need to set a stop-loss; however, if you are trading high-risk coins, whether spot or futures, you should set a proper stop-loss.

9. Do not make trades you are uncertain about. When you are unsure whether the market will rise or fall, there is no need to force a trade. After all, no one is forcing you to open a position.

10. No matter when you make money, the first thing to think about is not to keep pushing forward, but rather to consider how to protect your profits. It's best to turn off your computer and throw away your phone to give yourself a moment to calm down.

I hope these suggestions can help everyone, and wish you all wealth every day!