Hello everyone, I am an old player who has been in the cryptocurrency world for nearly ten years. From the first time I encountered Bitcoin at 28 to now, I have experienced the despair of losing everything overnight and also tasted the feeling of assets multiplying by a thousand times. If you ask me what has brought me to today, my answer is: 'Talk less about faith, and follow the rules more.'
Many people think that trading cryptocurrencies relies on luck, but in my eyes, it is more like a game of fighting against one's own nature. Today, I won't talk about myths of getting rich quickly; instead, I will share ten hardcore rules that have allowed me to 'survive' in this battlefield. After reading, you might avoid five years of detours.
1. The 'survival rules' of the crypto world in my eyes.
Don't fall in love with the market.
Markets have no feelings, but people do. I've seen too many people holding onto a coin that has gone to zero, simply because they 'believe in its future.' Remember, your money won't increase because of your faith. When the trend reverses downward, the fast runners are the winners.
'Stop loss' is your lifeline.
I blew up my account early on, fully invested in the mindset of 'just hold on a little longer.' Now my rule is: any single loss should not exceed 2% of total funds. This is not cowardice; it's to ensure I can see tomorrow's sun.
Opportunities are always there, but capital is not always present.
'Fully invested in one shot' sounds passionate, but after the passion usually comes the blood. No matter how optimistic you are, always keep some bullets outside; when a black swan comes, you'll have the qualification to bend down and pick up gold.
Learn to 'shut up and observe' amid the noise.
When all communities are shouting 'charge,' I usually step back to look at the candlestick charts. The frenzy of the crowd is often a reversal signal; the peaks of 2017 and 2021 were both pushed to the cliff by emotions.
2. My practical toolbox (practical tips).
How to play with small funds? Try the 'three-stage push method.'
Phase One (within 1,000 U): Only play with 1-2 coins that you have thoroughly researched, use 5% of your portfolio to practice trend trading, and don't take profits when you earn or average down when you lose.
Phase Two (10,000 U): Diversify into 3 different tracks (such as Layer 1, DeFi, AI), only select the leaders in each track, with long-term positions accounting for 70% and short-term swings for 30%.
Phase Three (100,000 U+): Must allocate 20% stablecoins + 50% major coins + 30% potential altcoins, with contract leverage not exceeding 3 times.
What to look for in candlestick charts? I only look at three signals.
Shadow line battle: The longer the upper shadow, the heavier the selling pressure above; don't rush to chase. The longer the lower shadow, the more likely there are buyers below, which may be an opportunity.
Sideways breakout: The longer the price oscillates within a range, the greater the strength of the breakout. But remember, false breakouts are more common than true ones; wait for a pullback confirmation before acting.
Volume speaks: Rising volume is a good thing, while falling volume means to run fast; shrinking volume during an uptrend is a danger signal, while shrinking volume during a downtrend can be observed.
Resistance and support: My 'road theory.'
Imagine the price as a road, where support is a 'speed bump' (easy to bounce back when it drops here) and resistance is a 'height restriction' (easy to fall back when it rises here). But the key is that speed bumps can be crushed, and height restrictions can be breached, so always keep your stop-loss in mind.
3. A few words from old hands.
The most colorful mushrooms in a bull market are usually the most toxic. Those altcoins that triple in a day are essentially a game of 'whoever runs slow pays the bill.'
A truly good project is often so quiet that you overlook it. By the time it suddenly appears on trending searches, it usually has already completed its first wave of growth.
Every time you feel 'this time is different,' the market will teach you the same lesson. History does not repeat itself simply, but human nature has never changed.
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