How Did I Lose My Capital in Crypto? 3 Survival Rules Helped Me Turn the Tide

Rules don’t need to be many, just need to be correct. Here are three “blood-forged” disciplines I derived after multiple account burns in the crypto market. The Early Days of Entering the Market: The More Confident, The More Painful When I first stepped into crypto, I was full of confidence. I believed I would become the next “master,” just a few trades away from changing my life. But the reality was harsh: within half a year, I burned my account three times in a row. Some days, after just a few hours, my account vaporized by 70%. Sleepless nights, trembling hands when looking at the chart – that’s a feeling anyone who has burned an account understands. And I realized: this isn’t just my story. Just one sharp crash of Bitcoin can liquidate hundreds of thousands of people in the blink of an eye. This market looks like a gold mine, but traps are everywhere. 90% of Losses Due to Similar Reasons After paying many school fees, I finally understood: losses are not due to luck, but because of repeating familiar mistakes. Let’s see how many of these situations you’ve fallen into.

1. Entering Trades Based on Feelings, Relying on Luck Hearing a phrase in the chat group: “This coin is about to skyrocket,” and immediately rushing to buy. No project research, no trend analysis, no understanding of cash flow. Result? Becoming the peak buyer, holding the bag for others to sell off.
2. Going All-In and Using High Leverage, Hoping to Recover a Trade “I’m about to run out of funds, risking one shot to recover!” – I used to think that way. But high leverage doesn’t make you richer faster; it only makes you burn out faster. A market reversal is enough to wipe out your entire capital.
3. Taking Profits Too Early, Holding on to Losses This is a fatal mistake. Making a little profit and rushing to close, while when losing, nurturing hope and holding from the top to the bottom. Meanwhile, professional traders always limit risk per trade to a very small percentage of total capital. 3 Survival Rules That Helped Me Stand Up After falling many times, I set three ironclad rules and strictly adhere to them.
4. Trade Only on Longer Timeframes, Ignore Short-Term Noise I analyze only from the 4-hour chart and above, focusing on the main trend and large waves. Short-term volatility can easily make you trade emotionally, especially in a 24/7 market like crypto. Catching the big trend is much more important than trying to profit from small swings.
5. Minimum Profit/Loss Ratio of 2:1, Cut Losses Decisively I always set pre-defined: Fixed stop-loss (for example, 50 USD)Minimum take-profit target at double (100 USD) This way, just one correct trade out of three can break even or profit. This rule helps me avoid emotional trading and always trade with a plan.
6. Strict Capital Management, Prioritize Survival Each trade risks only 1–2% of the total account. Even if I lose 10 consecutive trades, I still have capital to continue fighting. The winner is the one who knows how to defend. The loser always chases the price. In crypto, survival is more important than short-term profits. Psychology Matters More Than Technique Above all, what I’ve learned most isn’t indicators or price models, but emotional control. The market is always volatile, opportunities are never lacking. But only those with remaining capital have the right to wait for the next opportunity. Successful traders share: Having a clear planKnowing entry and exit pointsKnowing when to cut losses when wrong Without a plan, you’re just gambling. Conclusion: Opportunities Are Always Present, But Capital Loss Means It’s Over Crypto is not short of opportunities; what’s lacking are disciplined people who can survive until tomorrow. My three rules sound simple, but very few can follow through to the end. I hope you won’t have to go through the feeling of burning your account to realize these truths. Learn before paying tuition, because in this market, knowledge and discipline are the most valuable assets.