What you have described is a classical example of gambling and not trading. Anyone willing to risk 100% of their capital in a single trade is more or less saying he is willing to lose all the funds if the trade go bad and which is mostly the case for such type of traders because they don't have the mental readiness to manage their capital properly. This class of people does not last long in trading because the market will always find time to deal with them and make them learn the hard way. You will therefore, agree with me that it is bad habit to risk 100% of your capital in a single trade.
There has been people who took money that didn't even belong to them, and bet hedged with it, and lost it all and literally ended their lives. Of course people are not ready to trade long term like this, they are insane for doing it. But what I mean is that those are extreme cases, 100% is a lot, but if someone trades with 10% of their money, that's actually not bad in our world, in the crypto world I mean. This isn't Axe capital where every move is millions, we are poor schmucks who have 100 bucks to invest, so believe me, people can be quite daring when that's all they have.
But even when you grow to a few thousand dollars, 10% is what you do, not 1%, because 1% is nothing, you can't trade with 1-20 dollars range, that's just not possible, plus wouldn't even bring in any value, if you trade ten bucks, even at ten percent return, that's a dollar. So yeah, that may sound like gambling to you, but it's just literally the only way to trade when you are poor, and 1% is just not possible.