Suddenly received a video call from a fan in the early morning. On the screen was a girl from Jiangsu, with red eyes: "My 6000U account is gone... I opened a position with over 5x leverage in full margin, and a slight pullback just wiped me out."

After reviewing her trading record, the problem was obvious. This friend had put almost all her principal into the trade, without setting any stop-loss protections.

I've seen too many stories like this. Many people think that full margin trading can quickly make them rich, but in reality, it's just gambling with their lives. Full margin trading is like a car without brakes—any slight deviation can lead to disaster. In the crypto world, the real reason for liquidation is often not the leverage multiple itself, but the overly aggressive proportion of principal invested.

Here's a straightforward example: with the same 5x leverage, a full margin position can't withstand any small fluctuation, but if only one-tenth of the position is used, the ability to resist risk is several times stronger. This fan put almost her entire net worth into the trade, and as a result, a small pullback ruthlessly liquidated her.

Over the years in the crypto space, I’ve stumbled into many pitfalls, and I’ve summarized three "Position Survival Rules." With this approach, not only did I protect my principal, but my account also grew steadily.

**Rule 1: Control your single trade size, don’t go all-in**

Only use a small part of your total funds for each trade. Never put all your eggs in one basket. For example, if you have a few thousand U in your account, limit each entry to a few hundred U. Even if you hit a stop-loss, it won’t wipe out your chance to turn things around.

**Rule 2: Set a loss limit and cut when reached**

Before entering a trade, decide how much you can lose at most. Once that red line is hit, cut your losses decisively. Don’t rely on a rebound to save the trade. No one in crypto can survive by stubbornly holding through tough times; persistence only leads to deep losses or liquidation. Keep each loss around 1% of your total funds, using small losses to gain larger profits.

**Rule 3: Rest if you can’t see the market clearly, don’t gamble blindly**

When the market is chaotic and unclear, the smartest move is to stay out and observe. Don’t be tempted by others’ profit screenshots to chase high prices blindly. Wait until the trend is truly clear (for example, a key support level is broken, or volume starts to pick up), then act. Your win rate will naturally improve.

I have a fan who kept getting liquidated month after month. After following these three principles, she went from a few thousand U to over fifty thousand U in four months.

She told me, "I used to think full margin was the shortcut to quick wealth, but now I realize that scientific position management isn’t about being timid; it’s about wanting to survive longer in the crypto space."

Risks in crypto always exist. Many people have fallen here due to greed and ignorance. I share these methods to help you avoid those hidden traps. Whether you want to escape reckless trading is always your choice. Proper position management and steady progress in the crypto market is the right way.