The most important thing to survive in the crypto world is not to step into the same pits that others have already fallen into.

Last week, a friend came to me and the first thing he said was "I can't hold on anymore." He had only been in the scene for half a year, and his 20,000 yuan principal is now down to 3,000. When I saw the liquidation screenshot he sent, I was reminded of myself five years ago. Back then, I was also walking step by step to the edge of a cliff.

Today, I want to talk about the common pitfalls that beginners are most likely to encounter in the crypto space.

**Leverage Contracts Are a Beginner’s Graveyard**

When I first entered the scene, I played with 20x leverage. One night, my account received a whole month’s salary. I was so excited I couldn’t sleep. But after waking up, it was game over. The account was wiped out.

Similar stories are countless in the crypto world. There was a young guy who borrowed 40,000 yuan, plus 60,000 yuan from his parents, all in Ethereum. The result? In just a few minutes, 100,000 yuan was gone.

What are contract trades? Simply put, they are gambling. You think you’re investing, but in reality, you’re betting on which direction the price will move next. When the market is good, profits come quickly. But when it turns bad, losses can come just as fast as lightning. Even seasoned traders often get caught in contracts, let alone us newcomers.

So I’ve set a strict rule for myself: during the beginner phase, only spot trading, and don’t even touch leverage.

**Emotions Run High, Money Disappears**

Crypto market fluctuations are terrifyingly large. Bitcoin drops 20% in a day, and it’s just a common occurrence in the crypto world. Beginners are most likely to mess up in such an environment—when prices soar, greed takes over, and they chase the high; when prices fall, fear takes over, and they cut their losses to escape. The final result? Buying at the top, selling at the bottom. Losing everything.

I’ve now developed a habit: before placing an order, I write down my reasons for the decision, clearly stating how much I plan to make before exiting. This has a benefit—when emotions start to take over, I can look at this note and remind myself to stay rational. Set buy and sell price ranges, and once the target is reached, exit immediately. Don’t try to make a little more. Greed is a fatal flaw in crypto.

**"Experts’ Calls" Are a Ripping-Off Routine**

Open social media, and you’ll see endless posts like "I predicted it right," "Follow me and make a fortune," "Getting rich isn’t a dream." Beginners are attracted to these and treat these so-called experts as gods. But in reality? These so-called masters have uneven skills, many are just harvesting traffic. Every prediction they make is part of a layout.

I learned a harsh lesson. In 2017, I followed a very popular "expert" online. I was still very inexperienced back then and was dazzled by this guy’s aura. The result? Following his advice, I lost a big chunk of money. Later, I realized that those trending signal accounts behind the hype are just harvesting retail investors.

Now, I take social media advice with a grain of salt. If I really want to trade, I think it through myself. Don’t pin all your hopes of making money on others.