Following the rules is more important than relying on luck; surviving is more crucial than making quick money.
Last week at a gathering, Old Wu raised his glass and clinked it with mine, blushing as he said, 'If it weren't for you waking me up back then, I would still have to apply to my wife just to change a sofa.' Can you believe it? Six months ago, he sent me a voice message crying at three in the morning, saying that his 1500 yuan principal was reduced to just a few cents, and he was about to use his child's milk money.
As an old-timer who has been crawling in the cryptocurrency market for five years, I have seen too many beginners like Old Wu: after struggling in the workplace for several years, he saved some hard-earned money and jumped in after hearing people say, 'The cryptocurrency world creates wealth.' As a result, he was either scared out of his wits by the violent fluctuations or got carried away by the explosive rise of altcoins, ultimately becoming 'chives' without even knowing where the problem lay.
Lao Wu's rebound is not due to luck, nor is it due to 'insider information', but it strictly followed the three survival iron rules that I repeatedly emphasized to him. Today I will share these nuggets of wisdom with everyone; beginners can directly copy the homework after reading.
The first experience of a crash: the lesson of blindly following the trend.
Lao Wu is a seven-year veteran in the workplace, saving up 1500 yuan in capital by being frugal. When he first entered the market, he was like he had been injected with adrenaline, chasing after every popular coin; if someone said a coin would rise, he would go all in, and within two weeks, he lost 1000 yuan.
When I asked him, 'Why did you buy this coin?' he hesitated and said, 'It was recommended by someone in the group.' I didn’t hold back at that moment: 'Are you gambling your family's living expenses based on someone else's words? If you lose, who will you be losing to?'
This kind of blind following behavior is exactly the pit that beginners are most likely to fall into. Some criminals often engage in illegal activities under the guise of 'stable coins' and 'high returns', and many KOLs spread FOMO sentiment on social media. Research shows that 68% of popular coins on Twitter halve in price within a month.
The first iron rule: split capital, lock the basket.
My proposal for Lao Wu is simple and straightforward: divide the 1500 yuan into three parts, each 500 yuan, with each part focused on its role without overlap.
Use the first 500 yuan for 'short-term flexible trading', only focus on mainstream coins like Bitcoin and Ethereum, setting a profit-taking line of 2%-2.5%. Don’t underestimate the thin profits; the crypto market is highly volatile, and being able to consistently earn small profits is better than 90% of beginners. Lao Wu later relied on this position to earn small profits several times a week, which added up.
Use the second 500 yuan for 'trend trading', ignoring daily fluctuations, and wait for a clear trend in the technical analysis before entering the market, holding for 2-3 days before exiting, never getting attached to the trade.
The key is the third part of 500 yuan, which I told him to put directly into an offline wallet and lock it up: "This money is life-saving money, and it must not be touched even if the market drops below the bottom." This is the trump card for dealing with extreme market conditions; with it, there will be no chaotic operations during panic.
At first, Lao Wu didn’t listen and secretly used 300 yuan from his trend position to chase a small coin that rose 20% in a single day; as a result, it fell 15% that night, losing 60 yuan. When he told me about this, I didn’t comfort him, just said, 'That 60 yuan bought you a lesson; it was worth it.' After that, he became completely honest, strictly following the splitting rules.
The second iron rule: discipline is more important than analysis.
Knowing when to 'hit the brakes' is ten times harder than knowing how to 'drive'. Many beginners can understand trends, but just can’t control their hands—wanting to earn more when they make a profit, waiting for a rebound when they incur a loss, ending up either on a roller coaster or facing liquidation.
I set two 'hard rules' for Lao Wu: the loss per transaction must not exceed 0.8%, and he must close the position when it hits the point, even if it rebounds the next second; if profits exceed 2%, reduce the position by half and use profits to bet on subsequent trends, so that even if it drops, he won’t lose the principal.
When a mainstream coin surged 5%, Lao Wu was tempted to add 600 yuan to chase the high and screenshot to ask me, 'Can I enter?' I called him directly: 'Did you forget the 60 yuan loss from chasing the rise last time? Entering now is just picking up the tab; if you trust me, immediately close the software and go play with your kids.' As a result, that night the market fell by 3%, and later Lao Wu told me, 'My back was all sweaty; fortunately, I didn't act impulsively.'
Remember, the crypto market is not short of opportunities, but lacks people who can survive to wait for those opportunities. Data shows that high-frequency traders have a loss rate of up to 92%, while those who set automatic stop-loss points (recommended not exceeding -15%) have a significantly higher survival rate.
The third iron rule: learn to 'stay in cash' and don't fight against the sideways market.
The most common mistake beginners make is 'itchy hands'; even if the market has no trend, they must buy a coin and stare at the K-line, which wastes time and affects their mindset.
I told Lao Wu: "When the market is sideways, focus on doing your job well, it's ten times better than staring at the screen." He followed this advice later, focusing on workplace projects during the market's sideways movement, and instead earned performance bonuses, without missing out on making money in the crypto space—this is the true essence of 'dual-line profit.'
The crypto space is not a casino; you don’t need to be fighting all the time. Data shows that beginners who strictly adhere to trading discipline have a three-year survival rate that can increase from 19% to 68%. Many times, patience is more important than technology.
Survival is victory: Lao Wu's rebound and enlightenment.
Eight months later, Lao Wu's account surpassed 60,000 yuan, not only replacing new furniture for his family but also saving an emergency fund. A few days ago, he said: 'It turns out that the crypto space is not a casino; following the rules is more important than anything else.'
This statement hits the nail on the head. I've seen too many people with more capital than Lao Wu end up losing a lot, not because they are not smart, but because they treat the crypto space as a 'get-rich-quick' casino, forgetting the most basic risk control.
Our country's financial regulatory authorities have clearly indicated that virtual currencies are not issued by monetary authorities and are not legal tender, and cannot be used as currency in the market. Any virtual currency and tokenization activities related to real-world assets are unauthorized illegal financial activities.
A few pieces of advice for beginners.
There are indeed opportunities in the crypto space, but the prerequisite is that you must first learn to survive. If you are still buying coins based on 'hearing news' and are still going all-in chasing rises and falls, stop and take a look at how much capital you have left.
Invest with spare money, and do not invest more than 5% of total capital in a single project; always keep emergency cash; learn first and then practice, mastering the basic principles of blockchain and understanding core indicators; establish mechanical trading discipline, set stop-loss points, and withdraw the initial investment when profits reach 30% of the principal.
Recently, the China Internet Finance Association and six other associations jointly released a risk warning, reminding the public to be highly vigilant against various forms of virtual currency and real-world asset token business activities, and to protect their 'money bags.'
Lao Wu’s rebound has no secret; it’s just about strictly following these basic rules. In the crypto space, controlling risk is always more important than chasing high profits. Survive, and you will have a chance to see the sun tomorrow.
To be honest: the biggest fear in investing is pretending to understand when you don’t. Admitting you are a novice is not shameful. At the same time, you must have a sense of respect for investment, avoiding heavy costs due to ignorance and overconfidence.
I hope Lao Wu's story inspires you. Feel free to share your thoughts and experiences in the comments section, but remember not to mention specific coin recommendations or trading platform names. Follow Xiang Ge to learn more first-hand information and precise points about crypto knowledge; learning is your greatest wealth!
