How to Avoid Losing Money in Crypto

After years of grinding through the crypto trenches, here’s the hard-earned truth I’ve gathered.

Most retail traders fall into the same traps: they hold onto losing positions out of stubbornness but sell winners too quickly at the first sign of profit. They don’t watch market trends or volume, only focusing on whether their balance shows green or red. The outcome? Losses pile up like quicksand—the deeper you go, the harder it is to escape. And when profits do come, they’re tiny streams, never enough to make a difference.

Flip the Script: Hold the Profits, Cut the Losses

The correct strategy is the exact opposite: Hold onto your winners and cut your losses quickly.

Here’s the simple stop-loss and take-profit strategy I follow:

• When profits hit 15%, set a 10% trailing stop. If the market pulls back and your gains shrink to 10%, cash out and take your profit.

• If the price keeps rising? Let it ride—the longer you hold, the bigger the gains.

• On the flip side, if the price drops and your loss exceeds 5%? Cut it immediately. No hesitation, no emotions—just hit sell.

Why This Works

Think about it: If you consistently secure 10% profits while limiting losses to 5%, you only need a 50% win rate to thrive. Even if you make 100 trades, with just half of them winning, your total profit can reach 300%.

The Real Challenge Isn’t the Method—It’s Your Mindset

This strategy is simple in theory but hard in practice. The hardest part isn’t executing trades—it’s conquering your own greed and fear. Can you resist the urge to hold on to losers? Can you stay patient when profits start piling up?

That’s the real battle. Master your emotions, and the market is yours.