Many people in the crypto world make their first mistake by overestimating their own risk tolerance.

Look at the stories of liquidation around you—on the surface, it's due to sudden market changes or technical errors, but what's the real root? Position control. That’s the true black hole— the fastest way to swallow your principal.

Take ZEC as an example. A common rookie mistake is: having ten thousand dollars in the account, going all-in immediately. Completely defenseless. When it rises by one point, they start fantasizing about doubling; when it drops by one point, they panic and start selling. The whole process? Pure luck-based gaming, with no operational logic whatsoever.

I’ve personally suffered from this kind of mistake. When I was making money, I was arrogant; when I was losing money, I was helpless. The most painful part? Sometimes, I actually saw the right direction, but my poor money management was like a leaky bucket—losing everything silently.

Only later did I realize a truth: those who last the longest in the crypto space are never the gamblers who make quick big wins. The ones who can laugh last are those who understand how to leave room for error and can afford to lose.

Since then, I changed my entire approach. The core logic is actually very simple—

**Step 1: Small position testing.** No matter how optimistic you are about a certain trend, start with the smallest position to feel out the market rhythm. Only increase your position if it meets expectations. This way, even if your judgment is wrong, your losses are within controllable limits.

**Step 2: Be decisive with stop-loss.** Once you realize the direction is wrong, exit immediately. Don’t fight the market. Some say I’m conservative, but this "stability" is earned through countless tears and blood from liquidations. No amount of money is worth this lesson.

**Step 3: Holding cash is also a choice.** When there are no clear signals in the market, I prefer to stay on the sidelines for three days, never making reckless moves. When the rhythm aligns, I act decisively—take a satisfying position and then stop. No greed, no impatience.

By following this approach, my account has steadily grown, and my mindset has become more and more calm. Most importantly— I no longer fear liquidation.

In fact, most people who blow up in the crypto space don’t lose because of poor technical skills or market judgment; they lose to their own greed and unrealistic fantasies. A few lucky wins make them believe they can beat the market, but the final blow often comes from a complete wipeout.

Friends who want to turn things around, don’t think about going all-in right away. There’s always a market opportunity; the key is to have enough capital to survive and catch the next one.

Markets fluctuate every day. Traders who know how to leave room for themselves will be able to stand firm in the next cycle. Rules are the armor that helps you survive bull and bear markets.