"Withdrawing Profits is the Beginning of Understanding the Market"
I chatted with Hao Ge (@leechan1688) a couple of days ago, and he changed a long-held belief of mine: always withdraw your winnings.
I didn't understand this for the past two years, but now I completely agree. His premise is simple—treat the crypto world like a casino, and you're just a player; don't put too many chips on the table. Every time you win a big pot, withdraw most of it.
Anyone who plays Texas Hold'em knows: the blind level you're comfortable with determines whether you can consistently perform at your best.
If you're used to 100/200, and suddenly jump to 400/800, you'll find the game level is completely different. Most of the techniques you practiced become ineffective, leaving only fear.
In the crypto world, you don't need to manually change tables, but the stakes can increase dramatically in an instant. You're unaware of the risk, and your bets will unconsciously grow larger.
Withdrawing winnings has two crucial benefits:
One is a stable mindset, preventing you from getting carried away. Even the best poker players can become erratic when they get tilted; if you have too many chips in front of you, you're bound to bet more when an opportunity arises. Looking back at your biggest losses, they were all made when you were tilted.
Another key is maintaining trading sensitivity. When the amount of chips on the table makes you feel comfortable and willing to bet, you'll be more likely to continuously learn, review, and improve your judgment—this is the fastest way to grow.
However, the principles are simple, but putting them into practice is extremely difficult: people always overestimate their ability to manage large amounts of chips while underestimating their greed and fear.
Those who consistently outdraw their winnings have often grasped the essence of the industry and truly understood themselves.