In the crypto market, most investors fail not because of a lack of opportunities, but because of a lack of discipline. Below is an objective summary from the experiences of many long-time investors – rules distilled from many cycles of ups and downs, helping new investors avoid 80% of risks right from the beginning.

1. Never Go Full-Margin or All-in – The 'Divide by 5' Rule is the Number 1 Defense Line

Most investors are "swept away" due to the mentality of "betting once to change their life." But the crypto market is highly volatile, prices can drop 30–50% in just a few weeks, and any all-in order carries a huge risk of bankruptcy.

The "divide by 5" principle is regarded by many as a survival shield:

  • Divide the entire capital into 5 equal parts.

  • Each time you enter a trade, only use 1 part.

  • Even when facing a strong signal, absolutely do not use more than 2 parts.

Effect:

  • Avoid the risk of account liquidation when the market reverses.

  • Always keep capital to handle unexpected situations.

  • Reduce psychological pressure, do not panic when prices fluctuate.

This is not a strategy to make quick money – but a method to ensure you still have capital to continue existing when the market fluctuates strongly.

2. No Need to Use Dozens of Indicators – Only 2 Core Signals Are Enough

Many newcomers spend hours reading a multitude of complex indicators, but in reality, most decisions come from two simple but extremely effective signals:

(1) MACD – find entry points according to the trend

  • Macd > 0 → strong trend.

  • Signal DIF crosses above 0 → a safe testing point.

  • Only enter orders when MACD confirms a clear trend.

(2) Volume – the factor revealing real cash flow

  • Price increases but volume decreases → buying power is weak, easy to reverse.

  • Volume increases sharply but price remains stable → smart money exits.

Just mastering these 2 factors, investors can avoid most "bull traps" and "bear traps" in the market.

3. Stop-loss Is Always More Important Than Taking Profit – The Principle of Asset Safety

Crypto is a market extremely easy to create the illusion that "prices will return." But in reality, many assets drop 70–90% and never return to previous peaks.

Therefore, the fundamental principle is:

Always set a stop-loss before entering a trade.

And it should apply the strategy:

"Momentum – Increase profits, raise stop-loss"

  • Whenever the price increases by a certain level (for example, 15–20%), pull the stop-loss up accordingly.

  • Never let a profitable order turn into a losing order.

  • When the trend reverses, the stop-loss will protect most of the gains.

When the trend is strong and stable, this strategy helps optimize profits while ensuring safety.

4. Maintain the Habit of Regularly Reviewing the Market

A simple but effective habit:

  • Every week, spend time reviewing the weekly chart.

  • When the moving average (long-term MA) starts to level off or slope down, that is a warning signal of weak cash flow.

  • MACD on the larger frame shows a death cross, it is best to gradually reduce positions.

This method helps to see the "big picture" clearly and avoid being swept up in daily small fluctuations.

5. No Need for Sacred Secrets – Only Need Discipline

The crypto market changes every hour, but the fundamental rule does not change:

  • No all-in

  • Do not chase hype

  • Do not predict based on emotions

  • Do not hold losses indefinitely

Many people can make money quickly, but only those with discipline can survive long enough to meet the right cycles.

Crypto is like farming: Harvesting too early will lead to failure, being too greedy will lead to total loss.