2025-12-27 15:20:17

The truth about surviving in the crypto world is often misunderstood — it's not about who makes the fastest profit, but who can survive the longest.

In the early morning, a friend's urgent voice message came through: "I put 20,000 USDT with 10x leverage full position long, and it only pulled back 3% before it blew up. How is that possible?" When I checked his trading account, all 19,000 USDT was invested, with no stop-loss set at all.

This is a classic mistake. Many traders interpret "full position" as "strong resistance to falling," but in reality, it's the opposite — poor risk management with full position size can lead to ruin faster than any high leverage.

**The real culprit behind liquidation isn't the leverage multiple itself**

For a 1,000 USDT account: if you invest 900 USDT with 10x leverage, a mere 5% market move against you will wipe out the account; but if you only invest 100 USDT with the same leverage, it takes a 50% move to be liquidated. What's the difference? It all depends on how much principal you risk.

That friend put in 95% of his principal, chose 10x leverage, and was out after a slight 3% market correction. This isn't a leverage problem — it's a disaster of position sizing. Crypto markets fluctuate far more than traditional finance, and full position operations amplify these swings infinitely, often resulting in extreme losses.

**Three ironclad rules to avoid liquidation over half a year and still double your funds**

First, never risk more than 20% of your total capital on a single trade. For a 20,000 USDT account, this means a maximum of 4,000 USDT per trade. Even if your judgment is completely wrong, you only lose 20%, and the account can still continue operating.

Second, build positions gradually. Just because you're confident in a direction doesn't mean you should buy everything at once. Entering in 3-5 stages can significantly reduce the chance of being caught off guard by a bad average cost. Market reversals are normal — don't push yourself into a corner.

Third, always reserve cash. Keep 30-40% of your funds outside the account. This isn't waste — it's your bullet to turn the tide when a black swan event hits, and it's the foundation of a stable mindset. If your mindset breaks, your trading is doomed.

The crypto world isn't short of stories of sudden wealth, but those who can tell the story are often already out. Those who truly make money share one thing in common: they survive long enough and make few fatal mistakes. If you can't pass the position management test, no amount of leverage or correct direction can save you.

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FOMOSapien

· 7h ago

Oh no, it's the same old story, I'm already tired of hearing it... But honestly, my friend was the same day before yesterday, went all-in with 10x leverage and got wiped out. He's still regretting it. --- That's right, but no one listens until they blow up once and understand. --- I've heard this broken record too many times, but the real question is, how many can actually achieve 20% on a single trade? --- I will never forget that guy from last year, who turned things around when his account was down to 3% funds... I really don't have that mindset. --- Position management is truly the ceiling; leverage is just an accelerator. If the direction is wrong, everything is useless. --- The way to reserve cash is spot on. When the black swan hasn't arrived, it feels like a waste; once it comes, it's a lifesaver. --- Leverage doesn't kill people; greed does. Essentially, it's still a human nature issue. --- I've heard too many stories like this. Those who really survive long are very low-key, unlike those who boast about their trades every day.

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MerkleDreamer

· 7h ago

It's the old routine of full position liquidation again, truly impressive. The crypto circle is always these people paying tuition. --- Friend, I really believe in the 20% position limit rule. Living a long life is the key. --- There's nothing wrong with that advice, but it's especially hard to implement. When people get greedy, they push all in. --- Only when a black swan event occurs can you see who truly has reserves and who is just lucky. --- Not setting stop-losses, this guy is just waiting to be wiped out, it's only a matter of time. --- Position management is really a watershed. Without this awareness, you'll inevitably get liquidated sooner or later. No exceptions. --- Gradually building a position sounds slow, but it can actually help you survive longer. This is the hardest logic for most people to truly stick to in the crypto world. --- Keeping 30-40% cash on the sidelines? That requires a lot of mental resilience. I totally understand that itchy feeling. --- Those who see through this logic have already made a fortune. Most people are still dreaming.

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SorryRugPulled

· 7h ago

My friend just blew up like this, and he's still shouting for a bottom in the group... --- Full position trading is really playing with fire. I've seen too many stories of insomnia at dawn because of this. --- The 20% rule is spot on. Greed at that moment is a guaranteed death sentence. --- I need to seriously listen to the point about keeping cash reserves. I lost a lot before because I didn't do it. --- The people who tell stories are gone. That sentence hits home. --- Leverage itself isn't wrong; the mistake is not having a stop-loss in your mind. --- Building positions in batches really changed my mindset. I'm no longer gambling everything at once. --- I learned the trick of keeping 30-40% of the account in cash. Feels much more stable. --- That friend with 20,000 U is probably stupid. Not understanding this and still risking 10x leverage. --- Living longer is the real way to win. No doubt about it. There are too many dead in the crypto circle. --- I'll just ask, can you really stick to 20% per trade? I can't do it anyway. --- Reserving cash is just giving yourself a way out. Simple, straightforward, and effective. --- After reading this, I finally understand why I always lose. Turns out, it's all because of full position trading. --- No matter how high the leverage, it can't save trash position management. This should be printed in the trading room.

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not_your_keys

· 7h ago

Another veteran who went all-in and got wrecked, this is the norm in the crypto world, sigh. Greed is insatiable, like a snake swallowing an elephant, you have to bet your entire fortune, no wonder you get爆 Splitting into batches to build a position is spot on, that's exactly how I do it, much more comfortable mentally. The 20% rule has saved me multiple times, otherwise I would have already given up. Having some USD as bullets, when a black swan comes, it's the moment to scoop up bargains. Many people don't understand this. Leverage itself isn't wrong; the mistake is in how you use leverage, hahaha. Living long in the crypto world is the real winner, I need to get that tattooed. So, is your friend doing okay? Do you need me to share some stop-loss cases?

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SerumSurfer

· 7h ago

Basically, greed kills people. I've seen too many brothers like this. Full position leverage is truly a suicidal trade; I've never seen anyone live longer doing that. The 20% position rule should be written on the trading desk to prevent daily margin calls. Also reserve 30% cash; that's the real veteran strategy. Newbies simply can't understand. Leverage isn't the problem; greed is. Everyone wants to get rich quick, but what’s the result? Gradually building a position really saves lives. If not, I would have been wiped out long ago. This brother went all-in with 19,000 USD. I felt for him. He lost 5%, serves him right. Those who survive in the crypto world are the "greed kills" survivors, not experts.

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DAOplomacy

· 8h ago

honestly, the whole "position sizing" angle here is just... describing basic risk management with extra steps, right? like yeah, if you yolo 95% on leverage you're gonna get rekt, but this reads like institutional copium for why they didn't blow up their fund last cycle. the real talk nobody wants to hear is that half these "survived through discipline" types just got lucky on timing.

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ZKProofster

· 8h ago

actually, the position sizing math here is mathematically sound—proof of concept right there. most people don't understand that leverage amplifies losses linearly with notional exposure, not just multiplier itself. it's a protocol issue, not a leverage issue

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