The "Doubling Method" that every crypto world investor should know - An in-depth look at the Martingale strategy

In simple terms: If you lose, double your bet; theoretically, you can always recoup investment.

This tactic has been used since the 18th century in French gambling houses, and it was later proven by mathematician Paul Lévy—if you have unlimited funds and keep doubling your bets, you will eventually win back all your losses. Sounds tempting, right?

How to use it in the cryptocurrency world?

Simple and straightforward:

• In the first round, I invested 1000U to buy coins and lost.
• The second round invested 2000U, still at a loss.
• The third round invests 4000U… and so on.
• Until a turn of profit, the earnings from this round are enough to recoup investment for all previous losses.

Why are so many people trying?

✓ Psychological Comfort: Having a clear mathematical formula as a guarantee is better than random投心安. ✓ Flexible and Easy to Use: Not limited by exchanges/coins, can be used for both spot and options. ✓ Strong sense of breakthrough: Especially when the bear market declines severely, the thrill of doubling back is very addictive.

But there are a lot of pitfalls here.

❌ Huge capital requirements: After 10 consecutive losses, you need to invest over 1 million in the 11th round, which most people simply cannot afford. ❌ The earnings are negligible: Even if you win, you only earn a little of the initial bet. Is it worth taking such a big risk for this little profit? ❌ Some markets can explode: A bear market crash or a black swan event, your capital pool can hit rock bottom in minutes.

Common Flip Over Scenes

• Haven't figured out an exit point: Greed continues to double down, and in the end, there's no money left to cut losses.
• Treat it like gambling: Investing recklessly without doing homework can actually accelerate bankruptcy.
• Principal too small: Only 5000U but want to use this trick, 5-6 losses and it's game over.

Look at it from a different angle

This strategy is actually more popular in the foreign exchange market than in the crypto space, as fiat currency generally does not go to zero, making the risk relatively smaller. But the crypto space is different — a project can die suddenly, and your funds could be completely lost.

Conclusion

The Martingale strategy can be used, but must meet: a sufficiently strong capital pool, clear stop-loss points, serious research on the market, and solid psychological qualities. Otherwise, it is gambling, not investing.

Instead of chasing this “invincible formula,” it is better to first master the basics—learn to stop losses, diversify allocations, and accumulate through regular investments; these are the true principles for long-term survival.