Shorting is Not Pessimistic, Altcoins Can Drop to 0: Hard Lessons Learned During the Bull Market

In the crypto market, there are two sayings that seem very “extreme” but after many years of paying the price, I truly understand: “Shorting is not pessimism, but self-protection.” “The value of many altcoins can eventually drop to 0.” In the early years, I didn’t believe it. I thought shorting was too risky, and altcoins would “eventually double or fivefold.” The result was: I got liquidated when I shorted incorrectly, and I fully committed to altcoin positions only to see my assets gradually drop to zero. This is not about right or wrong debate, but about survival lessons learned from real money, real mistakes. If you are a beginner, I hope the four principles below help you avoid repeating my mistakes.

1. Always Check Liquidity Before Shorting, Avoid “Panic Selling” When you want to short a coin because it looks weak or overvalued, the first thing to check is not technical patterns, but liquidity. Look at the 24-hour trading volume. If it’s under $5 million, it’s best to skip. The reason is very simple: Without liquidity, there’s no way out. I once shorted a small-cap altcoin. The price dropped nearly 20%, I wanted to take profit but there was no buyer to match. When the price rebounded, I couldn’t exit in time and got liquidated. 👉 For low-liquidity coins, you can still be wrong and lose because the market doesn’t give you the right to exit your position.
2. Prioritize Bitcoin and Ethereum When Shorting If you must short, prioritize large coins like BTC and ETH. High liquidity, tight spreads, can enter and exit almost anytime. Most importantly: When you are wrong, you still have a chance to cut losses. Conversely, with small altcoins, just a short pump is enough to wipe out your short position, even if its long-term trend is downward.
3. Recognize “Value = 0” Altcoins Based on Actual Progress Don’t believe hype like: “Great future potential”“Upcoming big update”“Next cycle will explode” Just do one simple thing: 👉 Visit the project’s official website, check the product or application that has been deployed. Ask yourself three questions: Is there a real product?Is there a demo or usable application?When was the last update? If: No updates for half a year,Only talk about plans, roadmaps, promises,No usable product for trading or mining, 👉 Its actual value is almost zero. I once bought a “metaverse” coin, the team promoted it heavily for a year but never released a demo. Eventually, the team disappeared, and the token has been dead in my wallet ever since. A truly valuable altcoin must have something operational.
4. Shorting Also Requires Stop-Loss, Don’t Dream of “Catching the Bottom” Many people think shorting is “profitable as prices rise later.” That is a very dangerous mindset. Shorting is not just about guessing the right direction, but about risk management. For example: When shorting ETH, set a clear stop-loss. For instance: close the position if it rises 10%. I once was bearish on ETH, believed it “couldn’t go higher,” and didn’t set a stop-loss. As a result, ETH shot up 20% in a short period, and I lost my entire position. 👉 The market can remain irrational longer than you can stay solvent. Conclusion Shorting is not about showing off intelligence, but about preserving capital. Not all altcoins are “waiting to skyrocket,” many will end up at zero. Liquidity, real products, and disciplined stop-loss are more important than any story. If there’s one thing I wish I had understood earlier, it’s that: In crypto, surviving for a long time is already a victory. I hope this article helps you slow down a bit, but go much further.