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There is a deadly trap in the crypto world that not many people know about, but everyone who has suffered losses understands. That is: making money makes it easier to lose everything.
What’s the logic behind this? It’s actually simple. When you see unrealized gains in your account, your judgment becomes severely impaired. A sudden surge in price gives you hope, and greed leads you to increase leverage and trade more frequently, ultimately even losing your principal. This kind of thing happens every day in the crypto space.
**Why is it easier to crash after making money?**
The root cause isn’t that the market doesn’t give opportunities, but human nature. When you make your first profit, you want to make a second; after the second, you aim for the tenth. Without a stop-loss, no matter how much profit you have, one mistake can wipe it all out.
**Three simple but useful rules:**
**Rule 1: Take profits and recover your principal**
After your first profitable trade, immediately withdraw your principal. It sounds conservative, but the effect is astonishing — from this moment on, you’re trading with pure profit. Your mindset changes completely; you’re not afraid of losses because your principal is already safe.
**Rule 2: The more you earn, the more cautious you become**
When unrealized gains reach a certain percentage, immediately raise your stop-loss level. Many people misunderstand this, thinking that earning more means adding to your position. Quite the opposite. The more you earn, the more you need to protect. Set a reasonable stop-loss to lock in profits automatically — this is what mature traders do.
**Rule 3: Follow the trend, avoid short-term trading**
Real big money doesn’t come from frequent trading but from catching a clear trend. When the market is unclear, staying out is also a strategy. It’s better to miss an opportunity than to make a wrong trade.
**Securing profits is more difficult than earning more.**
This market isn’t short of opportunities to make money; what’s lacking are traders who can survive long enough. Those who truly make money are often not the most aggressive, but the most disciplined. They know when to enter, and more importantly, when to exit.
Don’t be dazzled by Bitcoin’s volatility. Calmness, patience, and self-control — these three are worth a thousand times leverage. Take it step by step, earn steadily, and only then can you go further in the crypto world.