In 2018, I jumped into the crypto market with a seven-figure principal, like a rookie entering a casino—chasing trends faster than anyone, buying the dip more aggressively than anyone, my mind filled with thoughts of 'doubling my wealth'. What was the result? Three years later, my account shrank from a million to just over 200,000, my wife almost divorced me, and the despair of smoking late at night while staring at the K-line chart still sends chills down my spine when I think about it.
But deep down, I just refuse to accept defeat: Why can others make money while I can only be a 'leek'? I settled down and locked myself away for three months, analyzing all my operations. I learned the hard lessons of going all in, stubbornly holding against the trend, and chasing after skyrocketing scams, and I've engraved each pitfall in my mind. Now, in my fourth year, I set out again with just over 200,000, and step by step, my account has long surpassed 34 million.
After 7 years of ups and downs, I won’t say I’m a 'master', but these 6 ironclad rules, gained through real money, can help you avoid 90% of the detours, especially suitable for friends still struggling with losses:
Middle section: 6 survival iron rules, each one a bloody lesson.
1. Capital allocation: Cut off the risk at the source.
This is the first lesson I learned from 'losing everything': Total capital must be divided into 5 parts, only 1 part is used for each trade, and if any single loss reaches 10%, exit immediately. Even if you are unfortunate and lose 5 times in a row, the total loss would only be 10%, which is much safer than losing more than half your principal in a market crash early on. Remember: In the crypto market, being alive gives you a chance; as long as you have the green hills, you don’t have to worry about no firewood.
2. Go with the trend: Don’t confront the trend head-on.
In the early bear market, I always thought 'it has hit the bottom', repeatedly catching falling knives, and ended up deeper in the hole. Later, I understood: rebounds during a downtrend are mostly traps to lure buyers; corrections during an uptrend are the real entry opportunities. Trends are like floods; you can only ride the waves by going with the flow; pushing against them will only get you crushed. Never think you can 'reverse your fate.'
3. Stay away from skyrocketing targets: There are no free lunches in the sky.
Those niche cryptocurrencies that rise 5-10 times in the short term may look tempting, but in reality, the main players have already made their profits and are ready to unload. Retail investors entering the market are just picking up the pieces. I once chased a skyrocketing altcoin and lost 80% in a week, which made me wary of the 'hundredfold myth.' The ones that can truly sustain a bull run are always quality targets supported by value; don’t let short-term gains cloud your judgment.
4. MACD signals: Buy and sell criteria that even beginners can understand.
No need for complex indicators; beginners can just look at the 0-axis crossover of MACD: When DIF and DEA form a golden cross below the 0-axis and the price breaks through a key position, that’s the buying point; when a death cross forms above the 0-axis and the price breaks support, sell immediately. I currently rely on this signal for 80% of my trades; it’s simple and direct, with a very low error rate, 100 times more reliable than listening to 'inside information.'
5. Don’t add to losses, but add to profits: Don’t magnify your mistakes.
Adding to your position while losing is like giving 'life support' to a mistake, which will only deepen the hole; if you’re in profit and the market is favorable with increased trading volume, add a small position to let your profits run. Remember two key points: a price increase with volume is likely an opportunity; a price increase with no volume means it’s time to exit. Also, stay away from air tokens that have no real application and rely solely on storytelling.
6. Weekly review: More important than frequent trading.
In my early years, I could trade seven or eight times a day, busy like a top, but the busier I was, the more I lost. Later, I changed to spending two hours each week reviewing: What operations went well this week? Which pitfalls did I encounter? How should I adjust my strategy? Gradually, I formed my own trading system. Frequent trading is just paying fees to the platform; reviewing is the real 'cognitive upgrade,' which is also the core reason I can profit long-term.
Conclusion: In the crypto world, it’s not luck that earns you money, but the difference in cognition.
To be honest, the crypto market has never been a place for 'gambling on luck'; it’s a battlefield for realizing cognition—your control over risks, your judgment of trends, and your restraint on human nature will ultimately reflect in your account. I’ve seen too many people come in with the mindset of 'getting rich overnight' and end up losing everything. The core issue is not understanding: the stricter the risk control, the steadier the path; the more informed you are, the longer you earn.
After 7 years, I’ve stepped into many pits and shed many tears; I don’t want you to repeat the same mistakes. If you’re struggling in the crypto market, it might be worth noting down these 6 golden rules and practicing them slowly.
Lastly, I want to ask: How much 'tuition' have you paid in the crypto world? Do you have your own unique insights? Let’s chat in the comments, and let’s avoid pitfalls and make money together! Follow me for more practical insights to help you navigate the crypto market with fewer detours.
