Cryptocurrency futures always seemed to me an enticing way to make money. The potential profit looked enormous, and the risk seemed manageable. But my attempt to turn these dreams into reality resulted in serious losses. I want to share my experience to warn those who are just about to start.
How I lost money
My story began with a small deposit. It seemed that I was ready: I read articles, watched training videos, and understood chart analysis. The first trades were profitable, and this motivated me. I thought, 'That's it, I understand how this works!'
However, the cryptocurrency market is unpredictable, especially when it comes to futures where leverage is used. One wrong step — and losses multiply. Here are the main mistakes that led me to lose a significant amount:
1. Greed and inflated expectations
Instead of locking in small profits, I constantly increased positions, thinking that the price would continue to move in my favor. As a result, even a small market correction 'ate up' all profits and pushed me into the negative.
2. Lack of risk management
I either did not set stop-losses at all or set them too far away, hoping that the market would 'pull back'. This was the biggest mistake: as soon as the price moved against me, my losses became uncontrollable.
3. Emotional trading
After an unsuccessful trade, I tried to 'get even', which led to new losses. Each time I thought, 'One more trade, and I will get my money back,' but the situation only worsened.
4. Dependence on news
Sometimes I entered the market just because I saw a 'sensation' on social media or Telegram channels. These news often turned out to be either outdated or completely false, and I lost money.
5. Excessive use of leverage
Multiplying profit potential seemed like a great idea, but I underestimated how quickly leverage increases losses.
What I understood and what I learned
The loss of money was painful, but useful: I learned lessons that I hope will help you avoid similar mistakes:
1. Control your emotions
Never enter the market on emotions. Trading should be based on a clear strategy, not on intuition or greed.
2. Set risk management
Decide in advance how much money you are willing to lose in each trade, and strictly adhere to this rule. Always use stop-losses.
3. Do not use large leverage
Even if you are confident in the market movement, it is better to use minimal leverage (or avoid it altogether). This will reduce the risk of instant losses.
4. Study the market deeper
Just knowing how a chart or indicator works is not enough. Understanding fundamental analysis and market behavior is the key to success.
5. Do not trade with money you are afraid to lose
Only use the amount you are fully prepared to lose. Never invest money intended for living, family, or other important goals.
Important addition:
Never trade on borrowed funds and under no circumstances take out a loan for trading!
Do not trade based on signals! Learn to fully understand what you are doing and what you are involved in.
Is it worth trading futures at all?
Futures are a high-risk instrument that is not suitable for everyone. If you do not have a clear strategy, time to study, and readiness for possible losses, it is better to focus on other ways to invest in cryptocurrency, such as long-term buying and holding of assets.
Conclusion
Now I look at the market more soberly and consciously. Losses were certainly unpleasant, but they became a lesson for me. The main thing I understood: success in trading is not luck, but discipline, knowledge, and a willingness to learn.
If you are just starting out, remember: you can make money on futures, but the cost of mistakes is very high. I hope my experience helps you avoid what I went through.