crypto"Kill Line": Are You Ready?
In the crypto, the "kill line" is not essentially a candlestick pattern or a leveraged margin call. Rather, it's when you fail to balance three things: money management, position control, and basic living security. This leads to an unexpected event (flash crash, scam, hacker attack, bear market) that instantly wipes you out of being a "respectable player" and leaves you with nothing, plus your life collapsing.
Just like the American middle class: losing a job or getting a serious illness, without emergency savings, without insurance, and defaulting on mortgage and car loan payments, they can slide from a large suburban house to homelessness on the streets within a few months.
The crypto is even more ruthless, operating 24/7. A complete wipeout can happen in minutes, followed by debt, broken families, depression, and even more extreme consequences.
2025 was a bloody year: a flash crash in October liquidated $19 billion worth of Altcoin holdings, monthly sell-offs from unlocked altcoins, 84% of new coins falling below their initial offering price, hackers hijacking centralized exchanges, and retail investors slowly grinding away their "long-term holding" positions until they lost everything. Countless people poured their living expenses, retirement savings, and borrowed money into the market, failing to set aside a six-month cash buffer, diversify their positions, or buy insurance, thinking "this time will be different." A black swan event triggered a chain reaction: money gone → borrowing to cover losses → owing high-interest loans → job loss due to distraction → defaulting on mortgages → failed life restart.
Remember: the crypto has no social security net, no regulatory safety net. If you truly want to play the long game, don't push your resources to the brink—maximum 20-30% of your total assets into the market, 50% in cash/USDT for emergencies, no more than 10% for any single cryptocurrency, never touch your living expenses, regularly review your positions and set stop-loss orders, buy real-world insurance, and never borrow money to play leveraged games. A rational balance is key to avoiding being wiped out. Otherwise, you could be the next victim.
