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Where is the root cause of losses in cryptocurrency trading?
Let’s take an example and you’ll understand.
You have 1 million in assets, and you used 700,000 to buy a certain coin.
The next day, this coin dropped by 1%, and you lost 7,000. You don’t care; after all, it will rise back sooner or later.
On the third day, it dropped another 3%, and you lost almost 20,000. You are undaunted because it will eventually rise back.
On the fourth day, it gained 2%, and you recovered almost 10,000 of your capital. You smiled, feeling that everything is under control.
On the fifth day, it suddenly plummeted by 20%, and you lost 140,000. You started to feel uneasy and began to fantasize that it would rebound tomorrow.
On the sixth day, it rebounded by 5%, and you breathed a sigh of relief, thinking that trading cryptocurrencies still has its patterns.
On the seventh day, it rose by 1%, and you began to look forward to it.
On the eighth day, it rose again by 1%. Although you felt it was rising slowly, at least there was hope of breaking even, and you felt content.
On the ninth day, it suddenly crashed by 30%, and you started to panic, doubting whether you had chosen the wrong coin.
On the tenth day, it dropped another 10%, and you began to feel angry.
On the eleventh day, the coin price stopped fluctuating wildly and started to consolidate. You saw someone online saying this is a bottoming signal, indicating the market is accumulating energy, and you firmly believed it would rebound soon.
But…
In the following week, the coin price continued to consolidate. You went online to learn some knowledge about cryptocurrencies and, based on your understanding, believed this was the legendary "institutional accumulation phase!"
You continued to hold the coin…
A month later, the coin price not only didn’t rise but continued to drop by 20%. You began to feel numb, thinking that if you could just break even, you would withdraw your money and never touch cryptocurrencies again…
But contrary to your wishes, your coin continued to drop. At this point, you finally learned a new concept—stop-loss!
You felt immense pain, struggling internally, unsure whether to liquidate your holdings or continue to hold…
Just then, a good friend of yours told you that a new coin recently surged by 200% and shared with you his "leading strategy!"
You believed it! You actually believed it!
So you sold your coin and told yourself that once you make a profit on the new coin, you would come back to buy in again and hold it long-term, discussing breaking even later!
Let’s take an example and you’ll understand.
You have 1 million in assets, and you used 700,000 to buy a certain coin.
The next day, this coin dropped by 1%, and you lost 7,000. You don’t care; after all, it will rise back sooner or later.
On the third day, it dropped another 3%, and you lost almost 20,000. You are undaunted because it will eventually rise back.
On the fourth day, it gained 2%, and you recovered almost 10,000 of your capital. You smiled, feeling that everything is under control.
On the fifth day, it suddenly plummeted by 20%, and you lost 140,000. You started to feel uneasy and began to fantasize that it would rebound tomorrow.
On the sixth day, it rebounded by 5%, and you breathed a sigh of relief, thinking that trading cryptocurrencies still has its patterns.
On the seventh day, it rose by 1%, and you began to look forward to it.
On the eighth day, it rose again by 1%. Although you felt it was rising slowly, at least there was hope of breaking even, and you felt content.
On the ninth day, it suddenly crashed by 30%, and you started to panic, doubting whether you had chosen the wrong coin.
On the tenth day, it dropped another 10%, and you began to feel angry.
On the eleventh day, the coin price stopped fluctuating wildly and started to consolidate. You saw someone online saying this is a bottoming signal, indicating the market is accumulating energy, and you firmly believed it would rebound soon.
But…
In the following week, the coin price continued to consolidate. You went online to learn some knowledge about cryptocurrencies and, based on your understanding, believed this was the legendary "institutional accumulation phase!"
You continued to hold the coin…
A month later, the coin price not only didn’t rise but continued to drop by 20%. You began to feel numb, thinking that if you could just break even, you would withdraw your money and never touch cryptocurrencies again…
But contrary to your wishes, your coin continued to drop. At this point, you finally learned a new concept—stop-loss!
You felt immense pain, struggling internally, unsure whether to liquidate your holdings or continue to hold…
Just then, a good friend of yours told you that a new coin recently surged by 200% and shared with you his "leading strategy!"
You believed it! You actually believed it!
So you sold your coin and told yourself that once you make a profit on the new coin, you would come back to buy in again and hold it long-term, discussing breaking even later!
My Futures Portfolio
0 / 200
Minimum 10USDT
Copy trader have earned in last 7 days
-110.94
USDT
7D ROI
-100.00%
AUM
$0.00
Win Rate
0.00%
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After 76,702,767,407 Bitcoin reaches 100,000, what coin to buy? What is the real 100x coin in 2025?