2026-01-03 09:22:30

Many traders who have just entered the market share a common flaw—thinking about getting rich overnight all day long, only to end up being taught a harsh lesson by the market. Instead of chasing those illusory quick gains, it’s better to master a set of steady yet often overlooked methods. What I’m about to share are insights accumulated through years of market experience. They may sound conservative, but if you want to survive longer in the crypto world, these points are worth serious consideration.

To identify the most prone-to-failure operations, I’ve summarized three key pitfalls.

The first trap is chasing highs. When the market is extremely hot, even people who usually don’t invest are talking about jumping in. At this point, it’s often a good opportunity to take over someone else’s position. I learned this lesson the hard way: last year, a meme coin surged 300% in a single day. I was scared by the momentum and impulsively bought in, only to get cut in half the next day. Later, I realized that the real bargains are often hiding when everyone is panicking. When the market is full of despair and everyone is rushing to cut losses, that’s the perfect window for quiet accumulation.

The second deadly mistake is trading futures contracts. I’ve seen too many beginners blinded by leverage promises, opening positions with 20x or even higher leverage. A small price fluctuation can wipe out their entire capital instantly. Those smaller coins are even more ruthless—whales can easily manipulate the price to pump or dump, and beginners often can’t react in time. If you don’t even understand spot trading well, trading futures is like giving away your money to others. Focus on practicing with spot trading first; at least then you can understand the logic behind losing money.

The third point is capital allocation. Many people want to put all their assets into the market, but end up tense and easily panicked by any small movement. My habit is to always keep 30% of my funds idle: when prices fall, it’s easier to add to positions and lower the average cost; when prices rise, I won’t regret not having enough liquidity. This rhythm allows you to navigate market fluctuations with ease.

View Original

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.

10 Likes

Reward
10
8
Repost
Share

Comment

0/400

SelfRugger

· 01-06 03:40

Oh dear, only after losing out do you realize that chasing high is really a lesson learned the hard way. Contract traders, why do you all love suicidal leverage so much? I should have thought of keeping 30% idle funds earlier—what a painful lesson. How long will the dream of getting rich overnight last before waking up? If you can't even understand spot trading, why jump straight into contracts? No one is more professional than you at losing money. The real opportunity to buy in is during a big drop, brother. I also chased that meme coin that surged 300%, uh... don’t even mention it. Money management is truly the most boring but also the most crucial thing; nobody likes to hear it. Revoke read receipt, I think there's nothing wrong with what this article says. The biggest enemy for beginners is their own greed, nothing else.

View OriginalReply0

Degen4Breakfast

· 01-05 06:58

That part about chasing highs really hit me. I was also caught by meme coins last year, and now I react reflexively and calmly when watching the market... Contract leverage is really a new trader’s harvest tool. I’ve seen too many people get wiped out with 30x leverage. But honestly, I still have some reservations about the 30% idle funds ratio. It depends on the specific market conditions in the crypto space...

View OriginalReply0

StableGeniusDegen

· 01-03 22:49

Contract liquidation is really a money-wasting machine in the crypto world; I've seen too many newcomers' dreams shattered. Chasing highs to buy the dip is just talk; the real opportunity is when retail investors are forced to cut losses and cry for their mothers. I also use the trick of 30% idle funds; it has indeed saved me several times. If you can't even understand spot trading, how dare you touch leverage? Isn't that just fattening the whales? The dream of getting rich overnight must be suppressed; living longer is the true winner.

View OriginalReply0

HappyMinerUncle

· 01-03 09:52

I love to hear this, contracts are indeed a graveyard for beginners Chasing highs taught me a bloody lesson, FOMO can't be changed, right? 30% position size has saved me several times, and I'm increasingly appreciating the benefits of this ratio Leverage is the invitation letter to death, don't touch it When will the dream of getting rich overnight end? It's hard Practicing spot trading for half a year is faster than getting liquidated once in contracts You're absolutely right about asset allocation; I am the opposite of a full leverage cautionary tale The market's harshest aspect isn't the decline itself, but when it falls and you have no money to buy the dip Contracts can really cause you to doubt your life, I advise you not to touch them Panic is the best signal to add positions; when the market cries, we laugh

View OriginalReply0

0xSoulless

· 01-03 09:51

Chasing high prices is really a must-know lesson for newbies. I've paid tuition too. Now I just wait until everyone is crying before secretly bottom-fishing. --- Contracts are just a way to accelerate money-making. I've seen too many people’s 20x leverage dreams shattered. --- That's correct, but most people simply can't save 30% of idle funds, and once their mindset shifts, they go all in. --- The biggest truth in the crypto world is that those chasing quick profits haven't lived to tell the story. --- Those still chasing a 300% increase—eight or nine out of ten will probably be another missing person in the group next year. --- Asset allocation may sound the most boring, but it’s actually what the truly long-term survivors are doing.

View OriginalReply0

Lonely_Validator

· 01-03 09:48

Chasing the high wave was indeed foolish. My friend jumped in when it surged 300%, and he's still holding the position and regretting it now. Contracts are really a trap. 20x leverage is gambling. Don't touch it without experience. The idea of 30% idle funds is reliable; at least it won't ruin your mentality. Understand spot trading first before talking about other strategies—it's a painful lesson. Asset allocation is the key. Those who go all-in will eventually cry. Timing the market during dips is the real skill, but unfortunately most people can't do it. Those who have been in the crypto world for a long time understand these principles.

View OriginalReply0

JustHodlIt

· 01-03 09:42

I have deep experience with chasing high prices; I was heavily burned by meme coins back in the day. --- Contracts are indeed a killer for beginners; I've seen too many people go all-in and get liquidated immediately. --- I agree with the idea of keeping 30% of funds idle; maintaining a stable mindset is the foundation of making money. --- To put it simply, surviving in the crypto world still depends on discipline, not luck. --- Let me ask you, can anyone really resist the temptation to chase highs? Every time they say, "This time is different." --- If you don't even understand spot trading, why mess with leverage? Isn't that just asking for trouble? --- Fund management is what most people tend to overlook the most; as a result, they lose everything in one wave.

View OriginalReply0

TommyTeacher1

· 01-03 09:34

Really, I only understood after being cut by chasing highs once that buying low and selling high sounds easy but is hard to do. --- Futures are like printing money, but what they print is your money. Don't touch them. --- I'm also using the 30% idle funds trick, and it feels much more stable now, unlike before when going all-in was more prone to collapse. --- For beginners, the most important thing to learn is the basics of spot trading. Don't jump in thinking leverage will make you rich overnight. --- The real key is mindset. Greed feels good for a moment, but in the end, your wallet will be cold. --- I've experienced a 20x liquidation before, and it was terrible. Now I swear I won't touch leverage again. --- Is the market a good opportunity only when it's all green? It sounds simple, but actually doing it is another story. --- I kind of remember the loss I had last year on a meme coin. Blame myself for not holding on. --- Financial planning has indeed been overlooked. Most people are still greedy for that one more chance. --- There are many chasing highs. Every time they say this time is different, and then...

View OriginalReply0