Don't Let the Market "Wipe Out": Survival Guide When Trading Crypto Contracts

I entered the crypto market in 2018 – the time when Bitcoin was still hovering around the $3,000 mark. I have experienced all the ups and downs: witnessing BTC surge to $60,000, then crash back to around $20,000; seeing countless people go from “experts” overnight to zero because of contracts and leverage. Today, I’m not talking about getting rich quickly, nor painting a dream of hundredfold profits. I just want to share principles that have been exchanged for real money, real accounts, and sleepless nights, to help you avoid meaningless liquidation.

1. Leverage Is a Double-Edged Sword – Not a Spoon for Eating Rice The biggest mistake newcomers make is viewing leverage as a wealth-building tool, when in fact it’s just a risk amplifier. Many people enter the market with 50x, 100x leverage, thinking: “Just a 1% move in price doubles the account.” But they forget: “A single wick on a candle can wipe out your account in seconds.” The principle I set for myself: Coin top (BTC, ETH): no more than 20x Altcoins: maximum 10x, or even lower Even if you predict the trend correctly, high leverage can still cause you to get stop hunted or liquidated due to short-term volatility. The math is very simple: Higher leverage → lower tolerance margin 5x: price moves against you ~20% → liquidation 2x: price moves against you ~50% → liquidation 👉 Survival is more important than quick gains The market is still there, opportunities are always available, but your account might not be.
2. Capital Management: The Boundary Between Trader and Gambler “Full margin, all-in on one trade” is not bravery, it’s gambling. I’ve seen many people: Just one wrong order Lose all capital And leave the market forever Strict rule: Each trade uses no more than 5% of total assets For example: Account of 100 million VND Risk only 5 million per trade → Even losing 5 consecutive trades, total damage remains manageable Trade in parts, never “go all in at once”: Divide into 2–3 entries Priority: Clear breakout → enter part Price retests support → add more 👉 This way, you don’t need to perfectly predict the bottom or top, but still maintain a good position.
3. Stop Loss: An Essential Safety Net Not setting a stop loss when trading contracts is like: Driving at high speed without wearing a seatbelt. Setting a stop loss is not losing, but having the right to continue playing. Basic rule for stop loss: Each trade is allowed to lose 1–2% of total account For example: Capital of 100 million Maximum loss per trade: 1–2 million Dynamic trailing stop (: When in profit → move stop up Turn unrealized profit “on screen” into real profit For example: Buy BTC at 50,000 Rise to 55,000 → Move stop from 48,000 up to 52,000 👉 Even if the market reverses, you still don’t lose your capital
4. Trade Only When the Trend Is Clear A painful truth: 90% of the market time is sideways and choppy. Big money is only made in trending markets, not in consolidation zones. How I identify the trend: Weekly ): determine the main direction Daily (: find entry points Trade only when: MA on weekly chart is in an uptrend Weekly MACD confirms the trend Sideways market = no trading BTC fluctuates within a narrow range Price continuously scans up and down → High leverage will be “drained” bit by bit 👉 Not trading is also a correct trading decision.
5. Withdraw Funds: Turn Numbers into Real Assets Many people: Make a lot of profit But never withdraw Finally, they give everything back to the market My personal rule: When profit reaches 30% → withdraw the principal For example: Capital of 100 million Profit rises to 130 million → Withdraw 100 million, continue trading with only 30 million profit Even if it burns later: I still have the original capital It doesn’t affect my life Additionally: Exchanges are never completely safe Black Swans in crypto happen more often than you think 👉 Withdrawing is not out of fear, but out of respect for risk. Conclusion: Long-Term Success Is More Important Than a Single Win Trading contracts is a game of probability; no one wins 100%. A good trader is not someone: Always right But someone: Wrong but doesn’t die Loses but still has capital Strict personal discipline: Lose 3 consecutive trades → take a break Don’t trade when emotionally unstable Don’t believe in “get-rich-quick myths” People bragging about hundreds of times profit: May have blown their accounts multiple times You just don’t see it 👉 The market is not short of stars, only short of those who live long enough. I hope these insights help you lose less money, survive longer in the market, and understand that: Learning to survive is always the most profitable investment in crypto.