I entered the cryptocurrency circle in 2017, when Bitcoin had just broken its previous high and the market was in a frenzy. Like many newcomers, I had 10,000 yuan, fully expecting to double it quickly. What happened next? I ended up getting severely beaten in the first year: altcoins went to zero, contracts were liquidated, FOMO made me chase prices... I lost everything except my underwear. But eight years later, I have 38 million in my account. This isn't luck; it's the lessons learned from falling into pitfalls. Today, let's talk about something practical, no metaphysics, just the survival logic that ordinary people can replicate.
1. Capital management: Surviving is the key to laughing last.
What is the biggest fear in the cryptocurrency circle? It's not missing out; it's losing everything. I've seen too many people go all in, and the moment the market fluctuates slightly, they exit immediately. My ironclad rule is: never go fully invested. Each trade should use at most 20% of my capital, and if a single loss exceeds 10%, I must cut my losses.
Why 20%? After five consecutive losses, the principal is left with 50%, but as long as you catch a wave of trend, you can recover. Those who go all in have no chance to turn around.
Locking in profits is the way: transfer a portion of the profits to stablecoins or withdraw. Numbers in the account are virtual; what goes into your pocket is real.
2. Follow the trend, don’t try to catch the bottom: only eat the fish belly, not the tail.
Newbies love to catch the bottom, while veterans look at the trend. I used to always want to buy at the lowest point, but ended up often buying halfway up. Later I realized: the market is a bottomless pit when it falls, but an upward trend requires real money to push.
My strategy: wait for the price to break through key moving averages (such as the 30-day and 120-day lines), and gradually enter when there is a pullback. For example, after Bitcoin broke the 200-day moving average in 2025, every time it retraced was an opportunity.
Give up 'catching falling knives': rebounds during a crash are like mirages, looking tempting but result in being trapped.
3. Stay away from 'meme coins': high returns come with high risks.
A coin that doubles in one day? It is likely to zero out the next day. Especially those altcoins without technology or ecosystem, relying purely on marketing, the pump is to dump.
Only play mainstream coins: in my portfolio, Bitcoin and Ethereum account for 70%, the rest goes to leading Layer 2 (like ARB, OP) and AI tracks (like TAO). These projects at least have solid technology and community support.
Don’t believe 'missing the bus if you get on late': truly good projects will have multiple entry points, while meme coins only give you one chance to cut losses.
4. Technical indicators are tools, not the Bible.
I rely on MACD, but not blindly follow it. Its core is to judge the strength of momentum.
Buying point: when the DIF and DEA cross above the 0 axis after breaking the 0 axis, it indicates a shift from bearish to bullish.
Selling point: the death cross above the 0 axis is a risk signal; at least reduce your position.
But indicators may lag, so it must be combined with trading volume. When the price breaks through a platform with increased volume, it is usually a sign of institutional entry; a rise on low volume may be a trap.
5. The art of averaging down: increase position when making money, cut losses when losing.
Many people average down after losing, but end up deeper in the hole. My principle is: only add to profitable positions.
For example, when Bitcoin rises from 20,000 to 25,000, I will add during pullbacks because the trend is confirmed.
But if the price falls below the stop-loss after buying, it indicates a wrong judgment; decisively cutting losses is wiser than holding on.
6. Mindset determines the ceiling: endure loneliness and hold onto profits.
90% of the time in the crypto market is oscillation or downtrends; real main upward waves may only last a few months. If you chase every rise and fall daily, the transaction fees can eat up your principal.
Reduce trading frequency: I now only make 3-5 key trades a year, spending the rest of the time enjoying tea and watching shows.
Filter out noise: group chats and KOL 'insider' information are mostly emotional output. On-chain data (like whale movements and net inflows to exchanges) is the hard reference.
Final words.
There are no myths in the crypto world, only survivors. My 38 million was accumulated through 'less loss + guaranteed profit'. The market always has opportunities, but the principal is only once. Remember: when the trend comes, go all out; when the trend goes, stay empty and learn. This is the ultimate rule for ordinary people to navigate bull and bear markets.
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