Crypto traders urged to shift focus from profits to survival skills

Over $1.15 billion worth of leveraged crypto positions were liquidated within a 24-hour period this week. Nearly 168,000 traders saw their positions closed as Bitcoin dipped briefly under $74,000. 

For newcomers hoping to profit quickly from crypto, such losses highlight just how harsh the market can be.

Álvaro Smart Money, a Spanish-speaking crypto trading influencer who also partners with Bitunix, thinks many beginners approach trading with flawed expectations.

During Bitunix’s Ultra Talks series at TOKEN2049, Álvaro shared guidance that runs counter to how trading is often marketed.

“The first thing I tell my people is to forget about making money. You’re not here to make money. You need to be interested in what we do. You need to be interested in looking at charts every day. You need to be interested in finance.”

His point is that traders must build the ability to endure repeated losses before they can expect steady returns.

Why Most Beginners Struggle to Make Money in Crypto

The data illustrates just how tough that can be.

A study from the Bank for International Settlements found that between 73% and 81% of retail Bitcoin investors lost money on their initial bets from 2015 to 2022.

The researchers also noted that climbing Bitcoin prices drew in new investors, many of whom joined during rallies and later incurred losses.

Álvaro knows this pattern firsthand. He started exploring trading several years ago and got more serious during the COVID-19 pandemic in 2020. His early efforts ended with blown accounts and heavy losses.

He now says those experiences reshaped his view of trading.

“They see, oh, he made 20k with a trade. Yeah, but you haven’t seen the thousands of hours behind it. You haven’t seen the hundreds of thousands that I’ve lost in the process. You haven’t seen the sacrifices I’ve made, but you want 20k. What about the rest?”

Those losses are self-reported, and his overall trading profitability has not been independently checked.

Still, his core argument is simple: trading should be treated like a business. Losing trades count as operating costs, and profitability depends on whether the system works over the long haul.

Why Learning More Trading Strategies Might Not Help

Another frequent issue is the notion that the next strategy or course will finally deliver steady gains.

A 2020 study of Brazilian equity-futures traders found that 97% of individuals who kept day trading for over 300 days lost money.

Though the research looked at traditional futures rather than crypto, it found little proof that simply trading longer improved profitability.

Álvaro contends that technical know-how alone cannot fix poor decisions or unrealistic hopes.

“They’re looking outwards for the next guru or the next magic secret strategy or whatever. And they’re willing to give away their money for it. And that’s sad for me to see, because I know it doesn’t work.”

He teaches Smart Money Concepts, which involve examining liquidity and market structure to find potential trading opportunities.

However, he believes that grasping those concepts means little if a trader cannot apply them consistently in real market conditions.

That distinction becomes especially critical when leverage comes into play. In February, European regulator ESMA warned about the dangers of increasingly popular leveraged perpetual contracts, including crypto-linked products.

Leverage can turn a modest market move into a huge loss, leaving beginners with little margin for error.

What Should Crypto Traders Focus on First?

Álvaro’s recommendation is to swap short-term profit goals for gradual learning.

He suggests spending time getting to know charts, practicing individual concepts and building experience before raising expectations.

“Focus on the process, not the results. Focus on the process. What is the process? Well, it’s mainly about time exposure. Another thing I tell them, you got to trade to learn how to trade. I mean, you got to swim to learn how to swim.”

For beginners, that means trying out strategies before committing large sums, keeping losses under control, and analyzing why particular trades succeed or fail. Demo accounts can offer early practice without risking real funds.

Importantly, experience alone does not guarantee profitability. The day-trading research suggests that continued participation can simply generate more losses if traders fail to refine their methods.

Álvaro also believes that trading should improve someone’s life rather than become a desperate way to escape financial troubles.

His closing message is unusually restrained for an industry often linked with extraordinary profit claims.

“First step, survive and learn something. Then eventually maybe you can make money.”

And even after doing everything correctly, he admits that trading may never become a profitable career for everyone.