2026-01-01 14:24:02

Recently observing the crypto market, the phenomenon of market dumps has indeed increased, and liquidity has noticeably tightened. From the fan profile, an interesting change can be seen — more are veteran investors with several years of experience, while the enthusiasm of newcomers entering the market has significantly declined.

The reasons behind this are not complicated. Market volatility is high, and many newcomers lack basic understanding of the crypto space, leading to many people entering and losing money. Most beginners are still too aggressive, with no scientific plan for their capital investment, resulting in being washed out whenever the market pulls back.

The reality of the crypto world is like this — the market will never move in the direction you expect. Those who make money often do so not by intuition or luck, but by spending time improving their trading knowledge and risk management skills. Mindless trading in this market is too costly.

If you are also navigating this market, it’s worth asking yourself: Is your trading logic clear? Are your stop-loss settings reasonable? Mastering these basic skills is much more reliable than blindly chasing gains or panic selling.

View Original

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.

8 Likes

Reward
8
5
Repost
Share

Comment

0/400

DefiVeteran

· 10h ago

This is the cruelty of the crypto world. Newbie retail investors really can't handle it. Basically, it's because they didn't do their homework. They come in wanting to get rich, and when the market reverses, they run away. The old players stay, while newcomers get washed out. That's the pattern. I think stop-loss is really something that needs to be taken seriously; otherwise, it's just gambling. Liquidity tightening is indeed a bit uncomfortable, but this is exactly when your mindset is tested. It feels like those who are still alive now are the ones who truly understand something.

View OriginalReply0

TokenVelocity

· 10h ago

It's really exhausting to see newbies get washed out... These are all losses that could have been avoided. --- The key is that no one teaches them how to survive and leave this market; everyone is just thinking about getting rich overnight. --- Old investors are still stubbornly holding on, while newcomers have already left. The market is indeed dividing. --- Stop-loss is easy to say but hard to do; when it really comes down to it, no one wants to cut their losses. --- It's just a matter of having a clear head, but unfortunately, the clearest heads are the most expensive. --- All the newbies around me have indeed lost money; it's just a lack of understanding of the market... --- Mindless trading really leads to quick death, but smart trading doesn't necessarily guarantee profit, haha. --- Heavy sell-offs and tight liquidity—this is the process of filtering true players. --- The problem is that most people don't want to improve themselves; they just want to rely on luck to gamble. --- The ones making money have long since exited to arbitrage, and the rest are just cutting each other's leeks.

View OriginalReply0

MEVHunterX

· 10h ago

Newbies really should reflect. Every time they chase high and get trapped, blaming the market instead of themselves. --- Hey, that point really hit home. The friends around me all got liquidated upon entering, with no concept of stop-loss at all. --- What you said makes sense. Old players are doing well, while newbies get wiped out in one wave. The difference is huge. --- I truly feel that liquidity is tightening, orders are especially prone to slippage. --- Still the same advice: there's no guaranteed profit in the crypto world. If you can survive, you've already won. --- Proper capital planning is indeed crucial. I've seen too many go all-in and end up crying. --- Lack of understanding plus operation is really just giving money to the market. --- Market trends are always unpredictable. The key is whether your risk control system can hold up. --- There are fewer newbies now. Although fewer "chives," the volatility might be even fiercer. --- The problem is most people haven't even thought about what a reasonable stop-loss is; they rely entirely on luck.

View OriginalReply0

MrRightClick

· 10h ago

Newcomers being washed out are not the market's fault, but greed's... I've seen too many go all-in and then cry and shout for help. --- The feeling of liquidity tightening is indeed deep, but honestly, setting stop-losses is easier to say than to execute. --- It's interesting that veteran investors are returning, which suggests the market is self-purifying. --- Every time the market fluctuates, the backend is full of newcomers asking, "Why did I lose money before it even went up?"... Who's to blame? --- Traders who don't set stop-losses will eventually have to pay tuition; it's not a matter of if but when. --- In the crypto world, if risk management isn't done well, even the best market conditions are useless. --- Fewer newcomers might actually be a good thing; the market can only go further once the bubbles are squeezed out.

View OriginalReply0

UncommonNPC

· 10h ago

Newbies keep getting caught, it's about time they got used to it. But on the other hand, if the old players are still around, will the liquidity really be good? --- Forget it, setting stop-losses is easy to talk about, but few actually implement them. --- So, those still daring to enter now are either rookies or true players; the ones in between have already run away. --- Feels like the person writing this article has never been caught, otherwise they wouldn't be so calm. --- Having more veteran investors is actually more terrifying; their methods of cutting new rookies are even harsher. --- Is it just a lack of understanding? Come on, even those who understand technical analysis still lose money; probability theory doesn't lie. --- I've heard a hundred times that stop-losses are reasonable, but the market doesn't follow logic, what can we do? --- What does increasing sell-offs actually imply... Are the market makers accumulating positions or is a crash really coming?

View OriginalReply0