The Number One Killer in the Crypto World: Blind Margin Replenishment! Don't touch it if you don't understand these 4 rules ⚠️

Trading coins, replenishing margin during a downturn is an art, and once you master it, you can easily profit from the market.

Played it wrong, liquidated and exited. Long-term holding or accelerating losses is your destiny.

Traders must strictly adhere to the following "Four Iron Rules"; otherwise, margin replenishment is equivalent to disorderly risk amplification:

1. Be cautious with Margin Replenishment during the bottom consolidation period of mainstream coins.

Core assets such as Bitcoin and Ethereum often experience prolonged bottom oscillation after a significant pullback. Early Margin Replenishment during this phase not only fails to improve capital efficiency, but may also lead to a lengthy sideways movement, resulting in capital stagnation.

2. Margin Replenishment is strictly prohibited in a downtrend.

Margin Replenishment during a clear downtrend is essentially "catching a falling knife." You should wait for the market to stabilize and show reliable signals of a bottom (such as a slowdown in trading volume, trend reversal patterns, etc.) before considering to step in gradually.

3. Strictly implement the Margin Replenishment ratio and conditions.

• Short-term spot: Margin Replenishment can be considered when the decline reaches 15% and a stabilization signal appears.
• Medium-term layout: After the decline exceeds 30% and confirms that the market has entered a stable phase, then choose the right time for Margin Replenishment.
• It is strictly forbidden to arbitrarily increase positions; it must be based on the pre-established capital management rules.

4. Start with a light position, focus on risk control.

The initial position should be kept light, and Margin Replenishment should allow for cost adjustment space. Avoid the blind behavior of "increasing the position as the price drops"; otherwise, Margin Replenishment will not only fail to lower the cost but will also become an accelerator of capital destruction.

Margin Replenishment is a high-risk capital management tool, not a lifeline. Undisciplined Margin Replenishment will only exacerbate losses.

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