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After repaying my credit card debt, I only had 2300U left in my account. With the idea of earning a living, I started to get involved in the Crypto Assets market. At first, I watched the price movement every night, afraid that I would wake up to find my principal diminished, so anxious that I could hardly swallow my coffee.
People around are talking about the huge returns brought by high leverage. However, I personally witnessed my colleague Xiao Zhang using his year-end bonus to invest in new coins with 20 times leverage, losing everything in three days; my friend Lao Li chased a niche coin and lost half a year's salary within a week. Seeing them in pain while cutting losses, I became more cautious and dared not to follow the trend blindly.
I fully understand that high leverage is like a sword hanging over my head, making it difficult for beginners to control. Therefore, I adopted a more prudent strategy. I divided 2300U into four parts, each worth 575U, focusing on mainstream coins like Bitcoin and Ethereum, which have relatively smaller price movements. I do not chase the surges of niche coins, nor do I blindly follow the suggestions in the group. Instead, I withdraw when others enthusiastically shout "the bull market is coming" and slowly buy in during panic sales.
Surprisingly, I earned 420U in the first week, and my account grew to 2720U. By the second week, it reached 3800U, and in the third week, it broke through 5200U. Growing from 2300U to 48,000U, I followed three simple and effective principles:
First, diversify your investments and focus on mainstream coins to control risks. Do not invest all your funds into a single coin; purchase only 1-2 mainstream coins with each portion of funds. These coins are resilient to declines, and even if there is a short-term pullback, they will not drop significantly like niche coins. Even if a portion of the funds incurs losses, the other portion can still remain stable.
Secondly, reverse operation, not being influenced by emotions. When the market is surging, I remain calm and take profits in a timely manner when I reach my expectations; when the market is panicking and falling, I do not follow the crowd to cut losses, but instead, I gradually add positions to lower my cost. For example, when Bitcoin fell below 20,000 U last year, I added positions twice while others were fleeing, and the subsequent rebound not only recovered my investment but also gained a 30% profit.
Finally, one must be cautious after making a profit. When the account exceeds 50,000 U, I switched to using automated scripts for placing orders to avoid the impulsiveness that comes with manual operations. I set take-profit and stop-loss for every trade, even if it means potentially missing out on profits of several U from the highest point, I will never take the risk of expecting a higher price. Some may think I am too conservative, but I know well that preserving existing profits is more important than seeking more.
The Crypto Assets market is not short of legends of overnight wealth, but there are more tragedies of liquidation. For ordinary investors, it is not necessary to master complex skills; just adhering to the three principles of diversified investment, contrarian operation, and controlling greed can help one go further in this market.
I hope we can all remain stable amidst market fluctuations and avoid becoming the leeks harvested by the market.