When I first entered the crypto world, I also faced liquidation, being cut, and being washed, losing until my heart ached.
Later, I grit my teeth and borrowed tens of thousands as my last gamble, and gradually rolled it into millions, tens of millions.
Now I’m sharing with you the pitfalls I’ve stepped into and the insights I’ve gained over the years—losing less is still a win.
1. Market rhythm is always the priority: focus on the cycle, don't impulsively buy.
The crypto market emphasizes cycles; not understanding cycles is like a blind person crossing a river.
I only focus on one thing—BTC's rhythm 30 months before and after halving.
18 months before halving: set up base capital.
12 months after halving: selling while rising.
During the halving in 2020, I preemptively invested 60% of my funds in mainstream coins.
On March 12, I felt like vomiting from the drop, but I held on, and in the end, it tripled.
Remember this phrase:
Small coins look at the big pie, the big pie looks at the Federal Reserve.
2. Position size is the lifeline: profits come from skills, survival relies on position size.
Never, ever go all in.
What I use is the 'three-three system' that I figured out myself:
30% as base capital.
30% Swing trading.
30% cash waiting for opportunities.
When LUNA collapsed in 2022, it was this 30% cash that allowed me to buy ETH at the bottom of 1000 dollars.
There’s another hard rule:
No single coin position should exceed 20%.
You never know who will be the next to blow up.
3. Indicators are not for show; they are for survival.
I only look at three signals every day:
RSI above 70 → Prepare to run.
MACD daily death cross → Must reduce positions.
If the main force has been continuously flowing out for three days → Leave, no explanation.
In 2021, when BTC surged to 60K, these three signals lit up red together.
I cleared 80% of my position and narrowly avoided the subsequent halving.
4. Don't panic when a black swan comes: survive using formulas and you win.
Crypto market bad news never tells you in advance.
What I use is the 'emergency template for extreme markets':
Drop over 30% → Look for support levels.
Volume rebound 15% → Only then can you enter.
Surge over 50% → Check if the good news is sustainable.
Volume reduction pullback 20% → Take profits and exit.
On the night of FTX's collapse, the market was full of screams, and I used this formula to protect 20% of my principal.
5. Those who can make money are always upgrading their understanding.
I set three habits for myself:
Read a new project white paper every week.
Monthly review of operation logs.
Rewrite the investment framework once a year.
In 2018, I lost a lot relying on ICO.
After that, I completely changed my approach, only investing in projects that are truly valuable, applicable, and have a future.
The market is always changing,
not updating your understanding is a slow suicide.
Last piece of advice: if you can avoid leverage, don’t touch it.
Leverage is not a shortcut to making money; it's an accelerator to liquidation.
Profitable?
Withdraw the principal immediately, use profits to snowball, and you can walk steadier.
Opportunities in the crypto world are never lacking.
What is truly lacking is—people who can endure.
