After years of struggling in the crypto market, I increasingly understand why most people keep spinning in the quagmire of losses.

First of all, it must be admitted that many traders have a very weak foundation. Their knowledge is narrow, and their cognition lags behind, so they can only follow the trend of K-line charts. They buy when others buy, chase when prices rise, cut when prices fall, and get stopped out repeatedly. Such trading methods are doomed to be a dead end.

Even more frightening is that some people have been in the crypto circle for many years and still make no progress. Why? Because they have never truly figured out why they make money, nor understood why they lose. It’s like blindly bumping around in the dark, occasionally hitting a door frame and thinking they’ve found a way out.

To be blunt, most people trading cryptocurrencies are just gambling. Making money is just luck; losing money is the normal outcome. Only a few grasp the real logic. Impulsiveness and aggressiveness? Those are the two biggest killers of accelerating losses. But the problem is, many people who lose money actually know their concepts and methods are flawed, yet they are unwilling to change. This is human inertia—just like any other living organism, it’s hard to break out of the current situation, and the first step is often the hardest.

Another big pitfall: poor discernment. There are too many voices in the market, and people fill their minds with all kinds of news. After listening to various KOLs’ ideas and methods, they end up more confused. Then some people hear a piece of news and go into contracts without verification or investigation. Without stability in their positions, losing money is only a matter of time.

Not understanding economics in investing can lead to huge losses when macro turning points occur. This pit is too deep. Some people suffer big losses during macro trend reversals because they think they can turn the tide, only to end up completely wiped out. Instead of stubbornly trying various wrong methods and repeatedly making mistakes, it’s better to spend time studying true supply and demand analysis and macro directions.

There are many strategies in the crypto circle, but the key is to find the one that suits you. My own approach is quite straightforward—first judge the macro trend, then build positions at support levels, and sell at resistance levels. Short-term floating losses don’t matter much; the focus is on whether the main trend is truly established. The most important thing is to protect the principal and survive to find opportunities. This is a long-term game, not a gamble.