I jumped into the crypto space in 2017, and like many naive newcomers at the time, I watched people around me become rich with altcoins and impulsively borrowed 50,000 yuan to dive in. What was the result? In the first year, the market taught me a lesson: chasing highs and selling lows, believing every rumor, my highest record was losing 30% in a single day, and in the end, I could only survive on instant noodles until payday.
But today, eight years later, I managed to survive and roll my assets to tens of millions, not relying on any 'insider information' or 'accurate predictions', but rather through the painful lessons learned at the cost of three bankruptcies. Today, I will share three of my most essential survival rules; if a newcomer understands just one, they can at least reduce their losses by 500,000.
First rule: The market is a 'PVP arena'; don't treat KOLs as saviors.
When I first entered the circle, I spent every day on Twitter chasing big influencers' calls, thinking that following them would guarantee a win. What happened? They quietly sold their positions while I blindly bought in. The worst time was in 2022 when I followed a 'ten-thousand-fold potential' project, waking up to find my assets shrank by 80%, and that KOL had deleted their post and run away.
Now my principle is:
All information must be cross-verified: white papers, on-chain data, and community activity are all essential;
Reject the echo chamber effect: deliberately seek opposing viewpoints to criticize, such as bearish reports or competitor analyses;
Even if you are optimistic about a project, do not hold more than 10% of your total funds.
It’s like that old saying: 'In the crypto circle, you are fighting alone. Everyone is pursuing their own interests, and no one will truly consider you.'
Second rule: Survive on 'stop-loss discipline,' not on the myth of becoming rich overnight.
I have seen too many people using 20x leverage to gamble, doubling their money in a few days with endless glory, but the next wave of volatility can lead to a total loss. In fact, making money relies on the market, while safeguarding wealth depends on risk control. My own painful history:
In a leveraged trade in 2019, I lost several thousand dollars in minutes because I didn’t set a stop-loss. After that, I set strict rules for myself: any single loss must not exceed 5% of total assets, and stop-loss orders must be set in advance.
My clumsy method of risk control:
Before each trade, I handwrite a 'trading plan': entry logic, stop-loss points, profit targets, and even write down 'what to do if I lose';
Never add to a winning position: only add in batches after confirming the trend, and each time the addition must not exceed 50% of the initial position;
Daily mandatory review: if you made a profit, analyze the proportion of luck; if you incurred a loss, you must find the specific error.
Third rule: endure loneliness to reap significant rewards.
The most counterintuitive aspect of the crypto circle is that—90% of the time you should stay still, but you need to be precise on the 10% of opportunities. The stage where my assets exploded the most was actually during the 2021 bull market when I only made 3 trades in mainstream coins, each held for at least a month.
Many people are constantly messing around with altcoins, only to find that their returns cannot outpace simply holding Bitcoin. My strategy is:
In a bull market, only capture sector rotations: layout narratives in advance (such as DeFi, Layer 2), and do not engage in fish tail markets;
In a bear market, hold BTC/ETH: use 80% of your position as ballast and 20% for trading to balance risks;
Absolutely do not chase highs: if you miss it, you miss it; the market will always have the next opportunity.
Finally, let me say something heartfelt.
Someone asked me if working full-time in crypto is tiring? Of course, it is tiring! Watching the market for 10 hours a day and not taking a holiday for 5 years is the norm. But compared to physical fatigue, I fear more the mental breakdown: getting inflated after sudden wealth (I almost floated to the sky when I made millions at 24), self-doubt after a total loss... these are all essential lessons.
Now, every time I place an order, I force myself to answer four questions:
Is the logic clear? (Don't touch what you don't understand)
Is there risk control? (Set stop-loss properly)
Is the position aggressive? (Not too light, not too heavy)
Can you afford to lose? (Sleep well)
The crypto circle is not a casino, but a place for mental cultivation—what is cultivated is the restraint of greed, and what is practiced is independent thinking. Remember, only those who have lived through bull and bear markets are qualified to discuss the future.
Follow Xiang Ge to learn more about firsthand information and precise points in the crypto world, becoming your navigation in the crypto circle; learning is your greatest wealth!#加密市场反弹 #美联储降息 $ETH
