I recently saw a screenshot of a crypto friend’s account, and it was quite upsetting—$10,000 principal, all-in with 10x leverage going long, and as soon as the market drops by 3%, it’s wiped out. I looked through his trading history: $9,500 full position all-in, and he didn’t even set a stop-loss order, completely cutting off his exit route.

Many people have a deeply ingrained misconception about full positions, thinking that putting all chips in makes you more resistant to drops. Actually, it’s the exact opposite. Liquidation in crypto is never the market’s fault—simply put, it’s poor position management.

Let’s do some quick math. Suppose you have $1,000, and $900 of that is used to open a 10x long position. If the market moves against you by 5%, your account is gone. But if you think differently and only use $100 to open the same 10x position, it would take a 50% move against you to get liquidated. How big is that difference? The suspense writes itself.

The reason I’ve been able to survive in this market until now is because I’ve always stuck to three rules. The first is the maximum size of a single position—20% of total funds, so at most $2,000 out of $10,000. Even if you make a wrong call, a stop-loss and liquidation only lose $200, leaving room to recover. The second is the cap on single-loss—no more than 3% of total capital. Setting a stop-loss in advance means even if you’re wrong three times in a row, your principal remains, and your mindset won’t shatter. The third is the principle of trade selection—only trade breakouts, avoid trading in choppy markets no matter how tempting, and don’t add to profits once you’re in the money. When emotions fluctuate, stop trading first.

I had a follower who kept getting liquidated every day. I taught him this mindset. He strictly followed these three rules, and in three months, he turned $5,000 into $30,000. Later, he told me he finally understood what “full position” really means—it’s not about gambling desperately, but about staying alive longer.

In crypto, it’s never about who makes the most money fastest, but who can survive the longest. Spend less time guessing market highs and lows, and focus more on position sizing and risk control. Sometimes, going slower is the fastest way to make money.

To break free from the liquidation cycle, you need to follow the rhythm step by step. The market is always there, and opportunities are always present. The key is to stay alive—only by surviving can you truly seize your opportunities.