Bitcoin Forum

Recently I was contacted by a trader friend, who told me that his trading position in futures was hit by Stop Loss. He played in altcoins, because Bitcoin has recently increased in value. My friend dared to take a long position in several altcoins with capital of $150, and after hitting a stop loss the remaining funds were $12.
I told him to stop and close the entire position he had just made. I want my friend to stop for a moment to calm his mind and emotions so as not to add to the existing losses.

And I suggest that if it starts again, it's best to just play Bitcoin and don't play with too many different types or play too many altcoins. I know that sometimes altcoins are able to provide greater profits than bitcoin when bitcoin experiences a 10 percent increase, but altcoins are also able to provide greater losses.

Bitcoin trading is also very risky, although altcoins are more volatile and riskier. Just tell him to hold, that is the best for now. I have traded bitcoin and altcoins, they all have their own risks and they are all for experienced traders. I remember a time I was new to trading, I traded bitcoin with leverage and I lost so much.

Yup.. Trading with leverage is very risky. Especially if I do it on altcoins, I'm not exaggerating but that's the reality, this is also based on my experience like yours too. Even though Bitcoin experiences an increase in price, not all altcoins will experience the same thing, there are alts that rise, there are alts that go sideways and there are also alts that experience a decline in price. There are several factors that cause things like this, especially when it comes to altcoins. Projects and their progress can influence prices, not to mention if Bitcoin dominance is very high, a pump and dump in Bitcoin can shake Altcoins even more severely. My advice is the same as yours, it's safer to switch Bitcoin and just buy and hold. It is better and safer than trading with leverage. Don't forget to eliminate stress, throw away thoughts of revenge so that your mental health returns and your emotions don't control your trading or investment behavior.

If he starts again and play Bitcoin only like you suggested, he will still loose. Features trading is not for everyone and very risky. You must learn the skills before attempting to do it. What I will suggest is buying and holding Bitcoin for long else he will loose more. Long term hold is a safer way of making good money with little efforts.

Now the price is low, not up to the ATH, imagine how explosive the rise will be when ETF is approved next year together with the Bitcoin halving... that will be a massive gain for those holding.

First of all, what the hell! Stop loss should be use to limit losses and not use to stop when the funds is almost depleted to zero. He should take a brake and learn more about trading fundamentals before he start trading again.

I’m not sure his goal on this kind of stop loss that stops near almost liquidation price but he should learn how to hedge risk by setting it by percentage loss and not by feeling. I wouldn’t recommend to start again before taking a deep understanding on trading because he will suffer the same if he will use stop loss like this.

Stop loss is crucial on crypto trading because the market is volatile which is brutal.
 When you have a position with tight liquidity margin. Your friend should learn how to setup stop loss and use a proper leverage to not suffer this kind of losses in the future.

Bitcoin is not for playing, using "play" terms makes me think you're pretty much use it for gambling.

So your friend is a trading addict (never heard about this lol)? just let him to gamble until he lose all of his money, your friend will regret if he not win. If you're really care with him, you can ask him to seek a professional or tell to his parent.

If you are having $150 to invest, first work on increasing the capital. You should do freelance work or find higher salary jobs to increase your revenue. Then, work with larger capital and then time given in all this investment will be worth it.

What your friend did wrong was trading futures, not because investing in altcoins caused him to lose money.  even if he were to trade futures using the bitcoin pair, he would get the same results.  you should advise him to stop trading if he does not have knowledge and experience about this market, especially to stay away from futures trading because it is more like gambling.  focus on bitcoin but should only invest and hold long-term, do not trade bitcoin futures.

Not sure how long your friend is trading though, maybe he doesn't have that experienced, or maybe he is just unlucky on what altcoins he is trading. Maybe he should stick to Bitcoin though as we all know that altcoins is more volatile so it's hard to make money out of it as in just matter of hours, it could flip.


Yeah, just stick to couple of them and see how it goes. Bitcoin could be a good practice for him specially if he is a beginner in trading. And just like what I said previously, trading is not for everyone. It might take years for others to make great money as it will take a lot of time in your part to learn this craft. So he might reset everything and see where his mistakes.

This is sad reality of futures trading I would say your friend is lucky to realise it at just $150 because once we get into futures trading we end up borrowing money or taking loans to avoid our funds getting liquidated in the hope that market will turn in our favor, I have made this mistake when I was doing future trading with SHIB in its initial days and end up losing $2800 in a single night, I can understand the pain and the sleepless nights, panic and depression one goes through.

Request your friend to take some time off from crypto and then start fresh with clear mind. Trust me he can achieve whatever he has lost if he follows certain future trading discipline and he should start with Bitcoin with a maximum leverage of 10x not more than that because Bitcoin is one of the safest asset for future trading which don't have sudden fluctuations, he should aim for multiple take profit of lesser amount, instead of waiting for more than 100% profit he should do 10 such trades of 10%. I have done this and achieved success but it will take some time and patience is the key here

I think $150 is already huge to start trading as your capital, It is also good to start with that amount of money so you can gather experiences as well, cause imagine this you can't even make profits from your $150 so what would happen if you are trading with larger amounts right. It's not only about the capital as well, these days you could already call anyone who's investing in this industry short-term as a trader, but without sufficient knowledge and skills, it would be just a waste of money. But you are right, it's much better if you have extra funds when you are trading so if you learn from a current mistake, you can make a comeback. If you already know that you can't really profit from short-term investment or trading, just go to long-term and you can start with the DCA method.

We all know Trading is very risky and even the ones called trading experts still lose money while trading cryptocurrency. If your friend followed the right course before starting trading he should be aware of the risk involved in it and the market is not always favorable all days so he should expect that there are days he will make loss. He probably is making wrong decisions and not using the right strategy. If he is so uncomfortable with losing while trading then it would be best for him to invest and hodl rather than trading. Be it alts or Bitcoin i think he is not ready for trading yet.

Bitcoin trading is just as risky as alt coins trading but the only difference that bitcoin is more stable than altcoins. The probability of altcoins providing greater profits is still the same as them providing greater loss because of their high volatility than bitcoin. I would suggest your friend quit trading and hold bitcoin instead.

Generally, we know trading is really risky, and the chances of you losing money is kind of high. From your post, I can say your friend is not yet a professional trader. The first mistake that your friend makes is trading futures. I do say that future trading is not for beginners, if you are still learning how to trade, then just focus on spot trading and avoid future trading. We all know that sport trading is less risky than future trading, so it's better to trade on spot than trading futures. Your friend shouldn't have chosen altcoins, since he is trading futures, he can still do his analysis, and either long bitcoin or short bitcoin will have been better than altcoins, but generally, I don't support future trading.

If your friend didn't stop trading at the moment, I am sure your friend is going to lose the remaining $12 that is left, and after losing the $12, your friend is likely going to deposit more money, which he might end up losing everything again. Future trading is kind of addictive, it once happened to me. I was addicted to future trading, which i wasted a lot of money. I had to force myself to stop future trading. When you lose, you will want to keep on trading, trying to win back your loss. You will start increasing your leverage and the amount you are trading with just because you want to win back your loss.

It's better your friend stop playing with altcoins and also stop playing with future trading. Those two things that I mentioned can easily wreck your friend, so it's better to avoid them and take a rest from trading for now. He should at least acquire more knowledge about trading.

Yes, I have said as much as I can, he actually opened 2 new long positions in 2 altcoins. Well, I can only give advice and can't necessarily make him stop to rest.

I also suggest just moving to Bitcoin, but I don't recommend holding or buying spot and hold.

From what I know, my friend opened 4 long positions and with a margin of 20 dollars per position (lev 20x) for stoploss I don't really know what percentage he took. Considering the huge losses I'm sure the stoploss he set was more than -100%

Unfortunately, he is married, has a wife and children 🤣. I have tried to give several suggestions such as to just close all positions and stop for a moment or just buy and hold on spot. because I believe now is a good situation to buy and hold before the halving occurs.

Actually, he has been trading for a long time. He has also been familiar with futures trading for a long time, he has also played forex. He is also skilled at technical analysis, but he admits that his fundamental analysis is still lacking. What I know is that crypto fundamentals are more influential than technical ones.

Taking a break to focus on Bitcoin trading is almost the same bullshit as taking a break to continue altcoin trading. Anyway, I find the story heartwarming:


And with all the experience your friend has, it turns out that he plays with a capital of:


That's a big lol and a half right there.

 ;D

Fucking insane. Oh come on, it's useless to analyze, have trading experience and so on if he can't manage money (i mean money management) in trading. With $150 capital opening 4 altcoin positions using $20 margin per position 20x leverage is suicide. I'm not surprised. This is the same as donating to the exchange owner. Lol

Next time, just use small margin and leverage. Futures trading is full of risks.

Better off trading bitcoin because there's a guarantee that you're not going to lose money in the long-term comparing that to altcoins where you don't know whether the developers are going to go with their promises and that they won't do a rugpull on their new altcoin which happens most of the time with these people who just want to make a quick buck and not really invest in the project or deliver the promises they've given in day 1. If you can, try to avoid altcoins or if you can't avoid altogether then make sure that the people in the project of the altcoin have the proper credentials or even be able to do what they say they can do.

Owning to this risk in trading both Bitcoin and altcoin it becomes very important for one to note that to become an experienced trader it needs to take a long time to build the knowledge and at that,  one should take trading just like gambling,  only trade with a small amount and don't be greedy to make too many profits by opening position with high leverages,  just like in gambling where you should not bet along high odds because the higher the leverage the faster the limitations if the market goes against you as a trader.

To build the experience,  quitting is not an option but applying the right approach which is to trade with the sole aim as a newbie to build experience and not for profit making for a start,  and until they become well skilled in trading then they can focus on profit making.

Although as overall financial advice, your total money should be 80% on holding Bitcoin and the remaining 20% just gambling/trading around with it.

I wanna know that, what do you mean by play with Bitcoin it will be the best. I want to say that  every investment has risk  but Bitcoin is the most secure and trustable coin  for investment,  but it has still remain the volatilities.  So if anyone want to  play with it I mean that anyone wanna do short-term trading with just basic knowledge then they also have to face the risk and losses even then investing in Bitcoin.

For those people who have little knowledge about trading like technical analysis then they should invest for the long term in Bitcoin. I also want to say that there will no risk,  but here the risk will be much lower than the short-term. So my suggestion will be for your friend first he should know the trading analysis and risk management then he can invest on Bitcoin for long-term with his lazy fund. But always should keep in mind that always invest as much as he can afford to lose. So suggest him, take a long term strategy with a proper DCA mangement/

Crypto trading is a risky profession, it’s not a game. Bitcoin is a more reliable long term than altcoins but I don’t think a crypto trader can be called a crypto trader if he doesn’t trade altcoins. It is obvious your friend is very skilled in trading, if he was, he would have known how to set a stop loss and know not to use high leverage on futures. What you’ve told us is a newbie mistake in trading, a seasoned trader would not lose over half his capital on a trade. I suggest your friend takes a break to improve his trading skills before he starts trading again.

Bitcoin trading is also risky, at least it has way more liquidity than other altcoins. It is quite usually to try to get into other altcoins instead of bitcoin, because people see it as an expensive asset, or maybe they think they lost the train many years ago... Still, imho, we should start talking in sats, so it is not that traumatizing for newcomers

Yes, basically any trade has its own risks and there may be some differences in the level of risk that will befall us as a trader, none other than the possibility of risk because we will take or take advantage of the profit opportunities that exist in the world of trading, and if our analysis is wrong because of market fluctuations that are not helped then yes as a result we will experience losses of different amounts. I agree with your statement and yes as you said that whether it's bitcoin or altcoins still both have risks and maybe for altcoins have a much higher level of risk.

With all the risk opportunities that can occur then yes of course that is the reason why we as traders must have a lot of preparation as one of the preventive measures to reduce the level of risk, honestly I will not focus that trading is only for those who are experienced, because of course they are also born from ordinary people who were initially beginners but with the planning and management they have (very good) it makes them one of the professional traders, and that means there is no prohibition for beginners to get involved in this trading as long as they have good planning and decisions so that things that are not wanted do not happen.

Bitcoin is not expensive because you do not necessary have to buy one bitcoin before you can own bitcoin, you can buy as low as less than $50 worth of bitcoin. Bitcoin can be liquid than all other cryptocurrencies, but there are many cryptocurrencies too that have high liquidity, it may not just be as liquid as bitcoin in volume but their orders are filled immediately with good market price.

As long as one is trading on futures, the risk is always the same because what you are trading on is based on the price volatility and side swings of the market, and even if you are trading Bitcoin, you will still encounter losses as long as your predictions are wrong based on the position you entered, and if you are not also very experienced, then you will still encounter losses. It's wise for a trader to have the most favorite and favorable asset they love trading and not just wake up and pick an altcoin they want to trade; meanwhile, they have not adjusted themselves to how volatile the asset can be.

Sounds like a made up story. A $150 series of positions with SL'S and yet lose 90%+ of the portfolio value? That makes no sense. Generally when an amount similar to that is liquidated with no stops, that could be the remaining amount

That aside, if you are trading using margin, it really does not matter too much as to which market you are using. Higher risk, higher reward. I don't believe that with such little capital, or even below $10,000, that it's possible to make a lot of money from trading. You'd be better off flipping patties and investing the proceeds into bitcoin.

Either it's Bitcoin trading or altcoins trading it's risky for beginners who don't know much about trading, it's right thing to do telling your friend to stop trading and start buying Bitcoin for long term hold but the truth is Trading has the capability to turn your life around and set you up for life, you will make gains than any degrees can ever get you.

The right thing to do is learn trading, but since it's not something you can learn in a day you have a lot of time to do it slowly, it's better to start learning after you buy your Bitcoin for long term hold, the gains that traders make from trading is so great that you can start traveling around the world.

Holding Bitcoin is less risky and also rewarding, depend on how much you invested, and trading is far more rewarding depend on how good you are at it, this is why crypto traders are also investors, they hold Bitcoin as a long term asset and they keep trading too.

From what you've said about how he lost most of his investment and the way he used stop-loss, I believe he is new to trading, and futures trading isn't recommended for newbie traders since it carries a lot of risks. So the first thing you should tell him is to stop trading futures and start gathering more knowledge and experience about the market and how different cryptocurrencies move up and down, if he wants to keep trading in the meantime, he should do that on the spot market and trade coins that are less risky.

A trader who faces extreme losses has to take a break, evaluate their actions, find out their mistakes, and then rectify them so that they don't make the same mistakes again. They should practice their knowledge and see if their strategies and patterns are working or not, and once they feel that they are completely ready, they can start trading again.

One funny thing  people find very difficult  to accept in cryptocurrency is the fact that the higher your profits tends to be same rate with your losses especially with altcoins and this very is ignorance has lead to greater losses than profits and that's why people have to learn how to stick to bitcoin because it has proven itself over time and still proving till date.
Well I've been a trader over the time and judging from my past experience, I think your bro is still very new to the trading industry because I was still imagining how someone with a trading capital of $150 and a stop loss be left with just $12 which means he was still messing with his emotions and before anything, he should work on his emotions

It's good that you made an attempt to calm your friend and stop him from a possible loss in the process.

However, experience is experience. It's fine to advise your friend to focus only on Bitcoin but if he's really up to the challenge of playing with other altcoins, the better suggestion would be, to learn from all of his losing experience. Future trading is really tough to handle and dealing with the emotion is critical here but that's the challenge there.

Don't stop your friend if he wants to bounce back again on playing with different altcoins. Instead, give him encouragement and feed him with knowledge and good pointers such as recommending a good altcoin, trading tips, sharing your strategy as well, and many more.

Bitcoin is now at decent price and we can expect some good pumps from it as we have seen it after a long time. Investment plan in the bitcoin is worth now as I think right time to provide bitcoin the most percentage the portfolio. I had already invested my more money in the bitcoin when i saw a recent pump in the bitcoin and that was after the $26k.

Then I decided to store it even when it goes above $40k. There is consisting 70% of my portfolio filled with bitcoin which is larger than expected but still I'm in search of buying it more in this price in hold it as well.

Actually, this topic is very suitable in the trading section, I think. It's been discussed many times, to always be careful when trading cryptocurrencies, there are lots of altcoins out there but don't let it happen because of FOMO, you forget that Bitcoin is the only coin that can provide real profits, from the story you tell. It seems that your friend is quite greedy and has little insight into trading, so he is reckless enough to trade in altcoins when Bitcoin is bullish, this is a lesson for everyone, trading in altcoins often leads to bad luck.

First of all, what your friend did was very wrong. He let his thoughts and greed to recover the losses, and he let himself trade after a loss, which indicated that he was not in a good mental state. Now your friend has learned it in a hard way. Youre right, a trader should only focus on one asset to trade. Well, many traders trade in different coins, but they can manage it; they know about that coin; they study it. But from the looks of what happened to your friend, he decided to trade in altcoins just because he sees that altcoins have a price movement, which is a bad decision.




And with that little capital, he trades in different altcoins? That is like a suicide; that amount of capital can only be traded for one coin; in fact, it is still risky to trade with that capital because it will give you a little equity, and maybe the reason your friend loses almost all his capital is because he trades with high leverage, which is not suitable for the SAIF capital.

Whatever the coin, if it is Future trading, then the consequences or risk of losing money will be much higher. Bitcoin is also quite volatile so that sometimes it can rise or fall quickly and result in our assets or positions in the future market being liquidated or ultimately achieving a loss. For this reason, future trading is not recommended for us, especially those who are still quite new here. Or for anyone who is not really familiar with this matter, it includes the lack of insight, skills and other readiness in trading in the future market.

So, wouldn't it be better to just buy Bitcoin for a certain period of time? so we will not be affected if the market will rise or fall quickly. because we have a specific target for Bitcoin at a certain price or during a certain period.

If you know what Bitcoin is and you’ve managed to somehow take losses investing this year, you are a special sort of trader… With Bitcoin up more than 100% nobody should be able to say they’ve lost a penny. If they did, they’re clearly doing it wrong. Just stack BTC. It isn’t brain surgery. It’s the best performing investment in human history. Stop trying to outpace it.

The OP's example I believe is trading futures in alts, so this one is actually hard.
If you don't know what you are doing, you can easily get liquidated in futures.
This is why if you are not sure in this trading market, better go for spot trading.
Maybe, the losses will be minimal. And also, deal with top alts, not new ones.
If the project is small, it can easily be manipulated by the team and they can easily deploy the wash trading technique.

Giving him the suggestion of focusing on just Bitcoin instead of altcoins will not help him either because in general, if you don't know how to trade, your money will just go *POOF* especially in futures trading where you can earn more, but you can lose more as well because of leverage.

We have almost the same experience with your friend. I did some good trades in the past as well, but one wrong entry, and add also the fact that I didn't put a stop loss made me lose all of my trading capital. After that, I stopped trading as well. Your suggestion will not help him that much. Whether it will be Bitcoin, or altcoin, the chances of you losing is still the same. It's not the coin that's the problem. It's your friend.

Maybe your friend needs to really focus on Bitcoin, but not for trading, but for holding.

Trading is risky, and you're right about the volatility. Potential profits and disadvantages must be balanced. Trading Bitcoin or altcoins exposes you to market fluctuations. Altcoins have higher risk, but they also have higher profit, therefore they demand a steady hand.

You're right about preparation being key to trading success. It protects against dangers and guides you through market swings. Today's successful traders were once beginners. They reached their heights via careful planning and smart choices. This story emphasises that experience is earned, not inherited.

Beginners should jump in with a plan. Learn and think about the market. Planning ahead, not years past, shapes your trading path. Bitcoin, despite its wild swings, shows crypto's inventiveness and tenacity. More than an asset, it revolutionises financial autonomy. Keep supporting, studying, and most importantly, trading with a clear head and full understanding.

Trading futures requires more analytical skills than spot trading. We must know when to close a trade and not chase bigger profits. Most future traders are greedy because they want bigger profits even though they have made good profits.

It's okay if they hope to get bigger profits. But it also depends on when they enter the market, what price they get, and how the coin moves. Whatever the coin, if its movement continues to remain the same for a certain period, he will be safe and can hope to make bigger profits. But unfortunately, today's crypto market is not like that.

The cryptocurrency market has now changed a lot. Today, the movement could go up for 2 days, but then the movement could go down for more than 3 days or sideways for a week. If so, they must be observant to know when to enter and exit the market. This is where it is important to have analytical skills because it will determine when they close their trade.

 I keep saying that the amount of capital also matters if you want to invest in bitcoin, bitcoin price as gone up  way beyond investing just any capital. The volatility of the market will see to it that your $150 is too small, they are still other less expensive project with good market cap you can invest in. Trading futures is more risky than the spot trade, you need to have the full dynamics of trading so that you don’t get swamp up in your ignorance. Trading futures requires knowledge and analytical skill to be able go about the market. You also need a good capital to manage your portfolio from liquidating  because of the volatility of the market.
  There are factors one need to take into account before investing in Bitcoin, getting authentic information from the right source is one of them, so that you can get idea of the what  is happening in the crypto space. Another things Is learning and mastering at least one of the indicators, know and practice how to use at least one or two of the indicators so that you can make your analysis for yourself, you don’t have to wait for signals from others. Be a master in your skill and don’t stop learning to better your knowledge.

Futures trading is not really designed for beginner traders, but the problem is that many people who are beginners and are not ready to lose their money trade futures which is a big mistake. They are tempted by futures trading which usually provides leverage of 50x or more only for profits in the short term. And when they are hit by a short, we can see the results like your friend, frustration and stress. The funny thing is that your friend actually opened a new position which has the opportunity to increase losses. He should calm his mind and analyze how his previous trade went before taking a new position. Or he can try Bitcoin spot trading which is safer and lower risk compared to futures trading.

This is a great approach to bitcoin and crypto investments. I mean if you are not sure about what to do, just investing into bitcoin for long term should be good enough .I always have some bitcoin aside, never invest into anything and ignore bitcoin, no matter how much I invest into something else, I always have more invested into bitcoin, that is always number one and if I am going to invest into anything else, first I invest more of that into bitcoin and then invest into another thing.

Like let's say if I am going to invest 100 dollars into litecoin, then first I invest 200 dollars into bitcoin and then I invest 100 dollars into litecoin. Keep that going, at all times, never stop investing into bitcoin and always end up investing into bitcoin first. This doesn't mean that you can't invest into anything else, you can always invest into something else, but always keep the bitcoin one going strongly if you want to make sure it is going to do better in the long run.

       -   When you enter the trading sector, don't expect there to be no risk; instead, we should be cautious and prepared for the unexpected because money is involved because you will be purchasing crypto assets. So focusing solely on Bitcoin is insufficient for me.

There will be various crypto assets that have market potential and can enrich us in the future. You only need to select the ones ranked in the top 20 to ensure that we make a profit here.

Futures trading always has many potential risks because no matter which trading pair you choose or a place that is considered reputable, prices can easily be liquidated when the floor wants to manipulate the player's position.

I'm not sure what people who do careful chart analysis think about applying it to this market, sometimes I feel like those things are just sugarcoating the point of applying it to a place with low capitalization like crypto.

IMO, the trading floor always wins, just like the house always wins the gambler. So sometimes these things exist just as a way to lure investors into evaporating their money faster.

Your friend is gambling and not investing. This is because he chose to trade in altcoin that is very risky and was made to scam people. It is very hard to make profit in bitcoin trading, talk more of altcoins that they are pump and dump project. He will run at big loss if he doesn't stop trading on those shitcoins that within a twinkle of an eye it has become worthless.

Since your friend has funds to trade on altcoins, whey don't you tell him to invest in the real game which is bitcoin and hodli for long, so that he can make profit and enjoy his profit. It is not good to trade when you have low knowledge on bitcoin trading because you will definitely run at loss. It not good to trade on altcoins because they are centralized and easily manipulated by the dev.

If your friend does really know how to trade in futures and set a stop loss, he won't end up from $150 down to $12. He should know how to do risk management, maybe your friend just continues to set a position without analyzing the market.

Futures trading is really risky, even if you advised your friend to focus only on Bitcoin. If he lacks the knowledge, experience, and capability to perform technical analysis, this scenario will only happen again. Futures come with a higher risk and are not for beginner traders. Better try to do spot trading and practice his trading skills with that or through demo trading.

Everybody will not be a long-term investor because they might aim at making short-term profits. Many people are not patient to wait for a long term to see their coins grow. Such people will choose to trade. However, engaging in trading without requisite knowledge will lead to unexpected losses.

You can only suggest to your friend and let him make his decision. Some people can take the risk of investing in altcoins because of several reasons. Investing $150 in Bitcoin might not bring a large profit, so he might just want to gamble it with altcoins. You can advise him to consider using DCA to stack  bitcoin.

Your friend is obviously trading with very high leverage that the $150 became $12 after hitting stop losses.
Bitcoin is risky to trade with leverage but trading altcoins is more riskier than bitcoin, trading altcoins with high marketcap is safer than low marketcap altcoins and they follow bitcoin's footsteps, your point is good that stick to only bitcoin because it is less volatile and less likely to manipulated by a single person or group of people.

There are several missing information in this post: does your friend have any knowledge about the risks involved with trading? Are $150 a lot of money for him? Is he doing this in order to make money that he actually needs or is he just playing around? Every situation is different, the important thing is to know what you are doing.

Losses is part of the perks that the blockchain space presents. In investing generally, investors are expected to prepare for loses as its part of the possibilities that exists, although its may be addressed to be insignificant or possibly zero but if you consider the looses to be too much, it's time you take a break and just observe the trend and know when to get in again, for traders.

For investors, you might want to buy Bitcoin and just hold it as the loses are impartial until you sell at a loss.

Big losses are not only obtained from altcoin trading - but also on bitcoin especially because your friend took advantage of future trading to make a profit. High leverage can increase the risk of liquidation for anyone so you are always advised to consider the risks and manage them well.

You can suggest him long term investment instead of trading futures with bitcoin. Bitcoin price volatility tends to be high so far which can also increase the risk of liquidation for it - but it is possible to make commensurate profits from futures trading if it is able to manage the risks well. Tell him not to be greedy - it will be very possible for him to get a total loss.

Stories like that are a dime a dozen, people like your friend see some traders posting great results by trading altcoins and by using leverage and immediately they assume they can get the same results, they do not stop to think if the information that is being posted is real at all, if the trader in question was just lucky or if they are simply that good and it took them years to reach that level, but in any case it should have been obvious it was impossible for them to achieve those kind of results on their own and yet by trying to emulate them they are setting themselves up for failure.

You could say my friend is experienced, he has been trading for a long time, forex and cryptocurrency. However, his Money Management is not perfect, I am sometimes surprised by the Margin used.

And the bad news, yesterday he was liquidated 🤦‍♂️.

At least I suggested Bitcoin futures for him to focus on just that one pair, I'm worried if this continues and he is still determined to trade altcoin futures. We know that altcoins do not always follow Bitcoin. However, if Bitcoin experiences a decline, it is certain that altcoins will experience a sharp decline.


You could say he has experience, he has analytical skills but is still inconsequential in Money Management. He's a businessman. Sometimes he trades and he uses any profits he makes to pay off the bank debt he has to build his business. I know the business is running smoothly and has good profits. However, I sometimes feel annoyed with his haphazard trading style, where if he was serious and disciplined he might be able to get stable profits.

At least he used stop loss. Had he not, everything he has would have been liquidated. But he probably used too wide margins or too much leverage that what he had left was only $12. Leverage trading is to be avoided if possible. It's more or less like gambling. It's highly risky.

But your trader friend sounds like a beginner. What's he even thinking of taking a long position in several altcoins when he avoided playing with Bitcoin in the first place because it is increasing in value? Has he not noticed that Bitcoin is bullish right now? It's almost common sense not to bet on altcoins when Bitcoin is bullish.

Sounds like your friend got lucky with his stop loss order and only lost 138 USD which is not really a lot for futures trading. The future market is much more volatile than the spot market and with large price movements this can quickly lead to bigger losses. Especially when trading illiquid alt coins, it could happen that the stop order doesn't get filled immediately and the losses will even be much higher. A stop loss order is no guarantee that we will get out of the market at that particular price. It also depends how much profit your friend made before is loss. If he was up 1,000 USD, then a loss of 13% isn't that bad. Another issue with your recommendation of switching to the Bitcoin market for trading is that there is no guarantee he is going to make more money with it. In the last month Bitcoin went up 30% and entering the market now means we following the herd. With the world economy slowly cooling down the risk of a correction in stock markets is still high and could spill over to the crypto markets as well. Having a good risk management with stop loss orders is important in any trades we are doing.

Most of the investors in altcoins are greedy. They give more concentration than bitcoins and invest in altcoins. In one stage they lose their money. There are also investors who blindly hold on some alt coins for years but at some point the coin does not improve and they lose their investment. So no risk should be taken on any such platform for the purpose of temporary profit. If someone does something like that, he should take time to think again. I believe when he can control his greed he can come back to the right place again.

The advice you gave to his friend was very good, you indirectly saved him from greed and made him able to control his emotions so as not to cause further losses. Not a few people choose altcoins because they want to chase big profits but they don't understand the risks. It's true, all investments have risks without Bitcoin. Such risks would not occur if we did not sell bitcoin. In contrast to altcoins, if the price has fallen then it is very difficult to rise.

In the past I also invested in altcoins because I remember my capital was small, but now after hearing strategies from friends here that we have to use the DCA strategy in buying Bitcoin. In my opinion, small funds are not an obstacle to investing in BTC, because the important thing is that we continue to be consistent in being able to buy it. With dca we can collect btc little by little until the amount is large which will provide big profits in the future.

But OP's friend lost money trading futures, so whether he used bitcoin or altcoins, there would be risks and the possibility of big losses. If talking about investment, of course bitcoin will be much safer but the profits will not be comparable to altcoins. Everything is proportional, low risk means low profit and high risk means high profit.

Investing in altcoin or bitcoin, the important thing is knowledge, experience and skills. If you have no experience investing in altcoins then you should stick with bitcoin, but if you are willing to take the risk and are confident in your knowledge. Why not try altcoins for more opportunities?

Investing in bitcoin carries risk as well, but I refer to the risk in bitcoin rather than altcoins because, no matter how long my money takes, I won't lose it. With certain altcoins, however, we cannot ensure that their price will rise when it falls. Using the $150 that your friend used to purchase altcoins. Even though the price of bitcoin is high, it's still not bad for him to use the money and invest in it. We can buy what we can afford to buy, not the entire bitcoin. Since then, if he decided to take the risk and invest his money in bitcoin, he wouldn't have lost it because the risk associated with altcoins is greater than that of bitcoin. What will he do with the $12 that remains? You should keep trying as best you can and advise him to stop investing in altcoins for the time being. He should try bitcoin and see how it turns out; I think he'll like it.

It's the result of greed to make a big profit in a short period of time.
Seeing how the performance of new altcoins or memecoins that have just emerged and hype,
experiencing hundreds to thousands of percent increases in just a short period of time.

Even though the performance of altcoins or meme coins like this will only last a short time,
and will be abandoned when there is nothing else to develop or the developer withdraws all liquidity to enrich himself.
It happens very often, many altcoins and memecoins end up with tragic stories and harm many people.

Rethinking and seeing how the main potential in Bitcoin will be more profitable in the long run,
requires patience to wait for the annual cycle that continues to occur, this cycle may have some similarities.

But it's not that Altcoin doesn't have potential, but Altcoin is quite risky for those who can't do research,
for old altcoins like ETH it must be the second investment after Bitcoin.

That's why it's better if he would try to learn more first before he proceeds back on trading. Even if he focuses on trading only in Bitcoin, there is no guarantee of making a profit unless he learns more about trading. On investing, focusing on Bitcoin is really better. Investing in altcoins needs more research and it's too risky but yes, there are more opportunities in altcoins with higher multipliers if you trade altcoins with low value.

In trading, it is best to use the coin with the largest trading volume, namely Bitcoin, because at least price manipulation can be minimized. but unfortunately in trading we have to have complex knowledge to be able to survive in the market, indeed by trading you can quickly make a profit, but we also don't forget that it also contains big risks. Now with $12 left, if we invest in Bitcoin, it will be difficult to get BEP, it's different if we do short-term trading, so the impossible can happen.

I believe if you are a trader, sometimes selecting specific trading pairs is not good at all especially since we have a futures market right now.
What I can say is there is something in trading he is doing wrong.
Maybe you are convincing him to invest only in Bitcoin like accumulate more and don't trade anymore? Well, that's different from trading anymore.