# 8 Years in the Crypto World: From Penniless to Supporting a Family: 12 Rules to Avoid Pitfalls, Helping You Save 3 Years of Detours

After 8 years of ups and downs in the crypto world, I've lost six figures in principal and stumbled upon various dark pits, only to go from being penniless to supporting my family through trading—today, I’m sharing the 12 rules forged from real money, each one encapsulating the essence of avoiding pitfalls. It’s recommended to save them; they could save your account at critical moments.

1. Capital is Lifeline: The crypto market is volatile; without capital, there’s no chance of turning the tables. Protecting your capital is essential to stay at the table long-term.

2. Greed is the Root of Loss: In the early days, chasing highs to “get rich quick” led to being trapped. Later, I learned that making steady profits is more reliable than chasing big wins; accumulating small profits can happen faster.

3. Focus Your Energy: Don’t buy a bunch of coins for “risk avoidance”; it’s easy to miss opportunities. Stay within your limits and follow trends, leaving room to handle sudden fluctuations.

4. Don’t Over-Leverage: I’ve seen too many people over-leverage and stubbornly hold onto losses, leading to even greater losses. Controlling your position and trading less is the key to steady profits.

5. Enter Steadily and Exit Quickly: Don’t impulsively chase after rising prices; wait for the right moment to enter. Don’t hesitate to sell; avoid profit loss; be decisive with stop-losses, and execute them without hope for luck.

6. Losses Have Limits: Market profits have no ceiling, but losses can be a bottomless pit. Don’t be greedy for profits that can never be fully realized; allowing losses to accumulate can wipe out all previous gains.

7. Don’t Delay Stops: Stop-losses are the last line of defense for your account. If triggered, exit immediately; hesitation will only exacerbate losses.

8. Real Profit is Cash in Hand: Regardless of long or short positions, book profits as soon as they are realized; they are illusory until you cash them in.

9. Extremes Lead to Reversals: No matter how crazy the rise, there will be corrections; no matter how bad the fall, there will be rebounds. Don’t let extreme market conditions cloud your judgment.

10. Waiting for Opportunity is Better than Blind Trading: In the early days, I always wanted to “catch every wave,” leading to significant losses from frequent trading. Later, I learned that patiently waiting for opportunities leads to steadier profits.

11. Stop-Loss is a Responsibility: You must strictly enforce stop-losses yourself; profits are gifts from the market. How much you can earn depends on opportunity; don’t force it.

12. Wealth Comes from Waiting: Truly profitable trades come from waiting, not from continuously buying and selling while fixating on the market.

The most uncontrollable aspect of the crypto world is desire; only by adhering to rules and strict execution can one go far. The details of capital planning, seizing opportunities, and controlling pace will be discussed with you slowly later.

In this market, it’s too difficult to walk alone. I’ve already stumbled through all the pitfalls and paved the way; do you want to follow along?