Discipline is the only protective charm, and mindset is more important than skills.
In 2015, with the determination of 'if I don't succeed, I will die trying', I entered the cryptocurrency circle with 50,000 saved from my job. At that time, Bitcoin was only over 2000, and most people around me didn't even know what 'blockchain' was.
Ten years later, my assets have exceeded eight figures. This is not a myth of sudden wealth, but a survival guide written with blood and tears.
I remember the most painful lesson was in 2018. At that time, I thought I had grasped the market rules, heavily leveraged long positions, and then encountered a black swan event, losing 100,000 in capital and going to zero in half an hour. At that moment, I deeply understood what it means to 'respect the market.'
My three core survival rules.
1. Use position control to preserve your life.
In the crypto world, living long is 100 times more important than making quick profits. I now strictly follow the 'Double Ten' rule: a single transaction should not exceed 10% of total funds, and if daily losses exceed 2% of total funds, trading stops.
For altcoins, I am more cautious: no single altcoin should exceed 5% of total funds, no exceptions even if I am optimistic. Once an altcoin surges 5 times, I will immediately sell 70% of the principal and let the profits continue to run.
Remember, 90% of losses in the crypto world are not due to 'bad luck', but because of 'lack of rules'. Over-leveraging, reckless investments, and trusting anonymous projects are the real sources of losses.
2. The market is specialized in treating all kinds of disobedience; stop-loss is the bottom line for survival.
I set a strict rule for myself: set a hard stop-loss line at -15% for spot trading, and do not hold contracts for more than 4 hours.
Many people have a misconception that 'holding on will bring back the loss'. But the extreme volatility in the crypto world far exceeds imagination! In 2022, LUNA dropped from $119 to $0.0001 in just 7 days; those who kept 'bottom-fishing' ended up losing everything.
My strategy is: only do trend-following trades, never bottom-fish against the trend. In a downtrend, all rebounds are traps; in an uptrend, all pullbacks are golden opportunities. 90% of losses in the crypto world come from 'bottom-fishing against the trend', while the key to profit lies in 'buying low with the trend'.
3. Identifying scams is more important than choosing opportunities.
The most disgusting aspect of the crypto world is not losing in the market, but losing to scams. Every year, over 2000 projects run away, and DeFi scams have an average annual loss of over $4.2 billion.
I have summarized a 'three-step project inspection method':
Must be audited by top institutions like Certik and PeckShield.
Core team members must disclose their real names; anonymous teams are 99% scams.
Must be listed on mainstream exchanges, with a 24-hour trading volume > 10% of circulating market value.
I always believe in one thing: the crypto world lacks opportunities, but what it lacks is the capital and mindset to 'survive to wait for opportunities'.
My daily operation strategy.
For different scales of funds, I adopt different strategies:
For small funds (3000-50000 yuan), I focus on new coin listing strategies, selecting only the top 3 projects launched on Binance/OKX, and intervening when the turnover rate on the first day exceeds 200%.
For medium funds (50000-500000 yuan), I adopt a 'stable + aggressive' combination: 70% of funds allocated to mainstream coins like BTC/ETH, and 30% to high-potential altcoins.
For large funds (over 500000 yuan), I pay more attention to risk diversification and may even keep 90% of long-term assets in cold wallets, leaving only 10% as liquid funds for trading.
My trading secret:
When buying, I adopt the 'pyramid building method': the lower the price, the larger the position; as the price rises, I gradually reduce the buying proportion. When selling, I do the opposite, using the 'reverse pyramid selling method': as the coin price rises, I gradually increase the amount sold.
I never pursue buying at the lowest point or selling at the highest point. Instead, I follow the principle of 'batch operations' to ensure I can respond calmly in any market situation.
Sincere advice for beginners.
If you just entered the crypto world, I would like to share a few insights:
1. Do not play with high-leverage contracts.
High-leverage contracts are just gambling; 90% of novice contract traders go bankrupt within 3 months. If you really want to learn about contracts, you can start with low leverage (3-5 times), but be sure to understand the risks involved.
2. Refuse frequent trading.
In the crypto world, trading 24 hours a day, there is no need for frequent operations. I advocate waiting patiently like a hunter for the perfect opportunity, rather than making impulsive investments at the sight of prey. Most people's losses stem from over-trading.
3. Take out the principal when you double, never go to zero.
Whether it's spot, contracts, or meme coins, remember one iron rule: when you double, you must take out your principal! Let profits run, so even if it goes to zero later, your principal has already landed safely. It sounds simple, but it's exceptionally difficult to execute, and this is the key distinction between ordinary people and mature investors.
4. Participate with money you can afford to lose.
Never use money that affects your life to trade cryptocurrencies, and do not borrow money to invest. The crypto world is highly volatile; only by investing spare money can you maintain a stable mindset and make rational decisions.
Epilogue: There are no shortcuts in the crypto world, only cycles.
In ten years of the crypto world, I have personally experienced three bull-bear transitions. My deepest realization is that the market never lacks opportunities; what it lacks are people who can calmly seize those opportunities.
Popular coins in a bull market often drop the fastest; truly promising coins, on the other hand, remain quietly at the bottom. This counterintuitive characteristic causes many retail investors who follow market sentiment to suffer heavy losses.
If you just entered the crypto world, I want to tell you: slow is fast. The strongest force in the crypto world is not technical analysis, nor insider information, but compound interest + time. As long as you can survive in the crypto world, over time, compound interest will bring you astonishing returns.
I remember when I first started, I was like a headless fly, chasing after price fluctuations every day, resulting in heavy losses. Later, I realized that 'less watching the market and more thinking' is the key to profitability. Now, I only spend a small amount of time each week reviewing the market, while most of my energy is focused on learning new knowledge and self-improvement.
One day in the crypto world equals ten years in reality. This industry changes rapidly; only by continuously learning can you keep pace with the times.
If you want to survive in the crypto world and achieve wealth growth, feel free to follow my latest updates. I will regularly share practical experience and market analysis to help everyone avoid traps and seize truly valuable opportunities.
Remember, in this market, 'stability' is more important than 'speed', surviving is more important than how much you earn. I hope my experience can help you avoid detours and go further and more steadily in the crypto world.
Do you have any unforgettable experiences in the crypto world? Feel free to share your story in the comments!
