This is a reflection shared by CoinKarma member － MorrisY.

Since trading crypto in 2018, I’ve immersed myself in research as different market sectors evolved. I explored technical analysis, learning to draw trend lines, analyze candlestick charts, and track moving averages. I also dove into fundamental analysis, calculating metrics like PE, PS, and FDV/MCP ratios. I got swept up in the ICO craze and rode the highs of the NFT boom. Throughout these phases, I meticulously analyzed various signals. However, in hindsight, not only did I receive liquidation notices, but the digital collectibles in my wallet also dwindled to worthless images with no liquidity.

Looking back at my asset curve, I realized that not only did I fail to outperform the market, but my wealth was actually shrinking. It felt like I was busy without making any real progress. That’s when I decided to reorganize my approach. Instead of chasing “get-rich-quick” schemes, I shifted my focus to “not losing big.” Since adopting CoinKarma’s tools, my net worth has begun to turn around.

Following Liquidity Indicators: Continuously Reducing Holding Costs

Upon closely examining my past trading habits, I realized my win rate with contracts was alarmingly low. So, I refocused on holding spot assets and tracking market movements over longer time frames. I began relying on the four-hour trend to guide my position adjustments, mitigating short-term volatility and shifting my focus towards reducing spot costs.

Using CoinKarma’s Overall LIQ and LIQ indicators to gauge market liquidity, I started selling 10% of my spot holdings whenever a red bar appeared, and buying during green signals. After making these strategic adjustments, I managed to reduce my BTC holding costs by 25% over the last six months. More importantly, my mindset and quality of life have both improved significantly.

Leverage and Risk: Finding My Ideal Comfort Zone

I generally avoid using leverage unless I encounter scenarios with “high win rates and favorable risk-reward ratios.” In such cases, I open small long positions in the base currency. By manually reviewing CoinKarma’s past win rates, I identified my comfort zone. For example, I only trade ETH when its Overall LIQ and LIQ indicators consistently average above 4 on the four-hour chart. I also use the ALT Resilient Index to assist my decisions.

Because I set such strict criteria, opportunities to use leverage are rare. Still, I maintain discipline with my positions, never exceeding 1.5x leverage and entering in batches. For instance, when trading SOL, I set my conditions at Overall LIQ > 2 and ALT Resilient Index > 3. I divide my entry into five batches, investing 20% of my capital with each signal. As seen in the August 5 chart, after the first signal, SOL dropped by 15%. This batch strategy protected me from heavy losses due to over-leveraging, while still allowing me to benefit from a subsequent 50% rebound.

No Need to Be a Prophet, Just Aim to Be a Survivor

After enduring several cycles of fruitless efforts and painful liquidations, I now primarily use CoinKarma for long-term position management. I employ minimal leverage during extreme market conditions, adhering to strict rules: never short on a green signal, never go long on a red signal, maintain leverage below 2x, and always implement stop-losses and withdrawals.

For me, trading is no longer about who can make the most money. It’s a complex game of risk management, strategy, and mindset. In this highly volatile cryptocurrency market, I no longer fantasize about being a “prophet” who can predict the next move. Instead, I aim to be a “survivor”—someone who manages risk effectively and stays in the game long enough to see it through.