I have asked many people the same question: why do we always think about shorting at the top when we see the coins on the gainers list skyrocketing, only to often end up with losses?

Instead of discussing technical indicators, it's better to first do a clear calculation.

The bottom line for going long is very clear. Invest 10U, and at worst, you lose it all—that has an upper limit. But what if the market starts to rise? Doubling, tenfold gains are all possible, and theoretically, there’s no ceiling on profits.

Shorting is completely the opposite. Your maximum profit is locked in at that 10U, but what if the market keeps surging? Losses have no bottom. The more aggressively it rises, the faster your account bleeds, and you simply can't withstand it.

This is why you often see a sea of "shorts' corpses" on the gainers list.

**First Trap: Emotions = Fuel**

Coins that can climb the gainers list come with inherent heat. Retail investors chase, media hype, communities boil over—FOMO emotions are ignited to the extreme. At this moment, if you short, it’s like using real money to oppose the entire wave of emotion. The herd effect of human nature is vividly displayed here—everyone is buying, but you insist on selling. The result? You get crushed by the emotional tide with no way to fight back.

**Second Trap: Small Cap = Short Squeeze Hell**

Many coins that surge wildly have very small circulating supplies, which gives the big players room to manipulate. They don’t need particularly clever tactics—just a slight push, and all the retail short stop-loss orders explode. Your stop-loss, instead of protecting you, becomes a stepping stone for them to push the price even higher. Short squeeze sounds simple, but only those who have experienced it know that despair firsthand.

**Third Trap: Fast Volatility + Poor Liquidity**

On the chart, it looks like a pullback, but in reality, it’s just a pause for the main players to shake out the market. Just when you think it’s about to top out, it suddenly surges, piercing your stop-loss. At such times, even the best technical analysis is useless. Small-cap coins have fragile liquidity; a large trade can cause violent swings, and shorts fear this kind of rapid reaction the most.

**Fourth Trap: Fee Costs**

When shorts pile up, the exchange’s funding rate starts to flip. Instead of earning from shorting, you end up paying. The longer you hold the position, the more these costs accumulate to ridiculous levels. Sometimes, your stop-loss isn’t hit by the market, but by the fees eating away at your position—an experience that’s truly exhausting physically and mentally.

**And the most deadly point**

Humans are naturally inclined to buy the top. But when the market is crazy, it never plays by the usual rules. Extremes often surpass your imagination. You think, “It can’t go higher,” but the market just keeps rising relentlessly, smashing all rational judgment to pieces.

**So how to survive longer?**

First, avoid the gainers list. Missing a wave of market movement is far less important than preserving your capital. With a solid base, you have a chance to turn things around.

Second, if you must participate, set a risk limit in advance. Know how much you’re willing to lose and accept it—don’t hold onto illusions.

Third, only focus on assets with sufficient liquidity. Stay away from small-cap “monster coins.” Liquidity is your last lifeline.

Fourth, wait. Wait until emotions truly cool down and trading volume significantly decreases before judging the trend. Shorting at this point has a better chance of success.

In the crypto world, it’s not about how accurate your judgment is, but how long you can survive. Going against the trend during a frenzy, betting isn’t based on technical analysis but on market sentiment. Statistically, that’s a losing gamble.

So, even if many coins on the gainers list are skyrocketing, stay calm. Combine current heat, liquidity, and emotional temperature before making decisions. This way, your chances of survival will truly improve.