The Six Fastest Ways People Lose Money in Crypto (And How to Actually Avoid Them) | by Abhaya Anil | The Capital | Apr, 2025

Let’s be real: Most people don’t lose money in crypto because of “bad luck”. They lose it because they never had a real system to protect themselves.

Today, I’m not just telling you what the mistakes are — I’m going to show you exactly how to avoid them, step-by-step.

Let’s get into it

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The Problem:

Using 50x or 100x leverage sounds exciting… until a 1% move against you liquidates your entire position.

The Solution:

• Set strict leverage limits: Never go above 3x — even 2x is safer.
• Risk only 1–3% of your portfolio per trade: If the trade goes wrong, you’re still alive.
• Use tight stop losses: Decide before entering the trade how much you’re willing to lose.