Having been involved in the crypto space for these years, I've seen too many people go from hope to helplessness. Someone asked me why I always lose money, so I explained four things—these are lessons learned at great cost by those who got liquidated, and almost everyone who cuts their losses can't avoid:

**First: Trading too frequently**
Some treat the blockchain market like a casino, thinking that holding no position means losing. They enter and exit the K-line ten times a day, seeming to catch the waves, but in reality, fees and slippage eat up about 30% of the principal. The real profit opportunities are actually in waiting; the more you rush to "do more," the easier you are to be played around by the market.

**Second: Heavy position with high leverage**
With the dream of turning things around, 80% of their assets are poured into one coin, with 10-20x leverage added. I know a guy who did this—once he made several times profit with leverage, but later he went all-in on a shill project. When the project team suddenly ran overnight, his account was wiped clean. Leverage is a double-edged sword—it can amplify gains but also magnify losses. As soon as the market moves 5% against you, you could be liquidated overnight.

**Third: Taking small profits and holding out for big rebounds**
This is the most common mental flaw. Taking a 5% profit and rushing to cash out, but when losing 30%, they do nothing. Some even add to their position after falling below key levels, only to lose 80% of their capital and lose the chance to turn things around. The market is never afraid of you taking profits too early; what it fears is you delaying your stop-loss too long.

**Fourth: Not setting stop-losses at all**
Too many trade purely on gut feeling, without a risk management plan, always thinking "the market will go as I expect." But in crypto, there are no iron laws—one piece of bad news or a sudden crash can cut your position in half. Not setting a stop-loss is like driving without a seatbelt—nothing happens normally, but when an accident occurs, it can be deadly.

Most traders who survive around me treat stop-loss as a strict rule. Even if they get shaken out sometimes, it's better than a complete liquidation.

Honestly, the logic of making money in crypto isn't complicated: reduce ineffective trades, stay away from high leverage, learn to take profits and cut losses, and respect risk. Keep your principal safe, and you'll have a chance to see real gains.