Only by protecting the principal can one laugh until the end.
In 2018, in a rented room in Shanghai, I watched helplessly as my account surged from 400,000 to 4,000,000, feeling like the chosen one. But three days later, it plummeted, and on Christmas Eve, my account was down to 700,000. I finally understood that the so-called 'holding on for a rebound' was merely self-deception.
Eight years of struggles in the cryptocurrency world have transformed me from a frequent liquidator to a steady player with assets worth tens of millions. The three iron rules I share today are not just embellishments, but life-saving talismans that I obtained with real money.
❶ Leverage locked at 3 times, don’t let impulse bury you.
Once upon a time, I was also a leverage fanatic. 20 times leverage made me earn 500,000 in a single day, feeling like a trading genius. At that time, I didn’t understand what risk was, only felt that the crypto world was an ATM.
As a result, the '924 storm' of 2021 came, and I lost 800,000 in two hours, with my account going directly to zero. At that moment, I finally woke up: leverage is a double-edged sword, misuse it and it becomes a knife for self-harm.
Now I have set strict rules for myself: leverage not exceeding 3 times, single coin position not exceeding 5%. Sounds very conservative, doesn’t it? But it is this 'conservativeness' that allowed me to survive the subsequent LUNA collapse and FTX crisis, and steadily grow.
In the crypto world, one day equals ten years in the human world. High leverage seems like a shortcut, but in reality, it is a trap. Protecting the principal is more important than seeking short-term high profits.
❷ 85% of funds should be bet on mainstream coins, don't be fooled by altcoins.
I remember once I bet 300,000 on an altcoin, which peaked at 1.8 million. Greed prevented me from taking profits in time, and it ultimately went to zero, losing everything.
There have been too many such lessons. In those years, every altcoin project told beautiful stories, claiming to change the world. In reality, most are carefully designed harvesting games.
Now I strictly follow the 85% rule: 85% of funds allocated to Bitcoin and Ethereum, only 15% of spare money occasionally playing with altcoins.
This is not stubbornness, but the realization of a truth: mainstream coins are anchors, altcoins are sails. A ship without an anchor will capsize in a storm. The reason Bitcoin and Ethereum can survive bull and bear markets is that they have real ecological support and a consensus foundation.
❸ 8% hard stop loss, discipline is more reliable than luck.
When Bitcoin dropped 15%, I stubbornly held on, resulting in a loss of half a down payment. This lesson was too profound.
Now I set an 8% stop loss for every trade, cutting it as soon as it hits, without hesitation. This seems simple, but it is a test of human nature.
Many people worry that after setting a stop loss, the coin price will rebound, missing profit opportunities. But my experience is: the crypto world never lacks opportunities, what is lacking is the principal that can last until tomorrow.
Discipline is the lifeblood of survival in the crypto world. I have seen too many technical analysis experts ultimately defeated by their mindset and discipline. A true hunter does not rely on predicting the market but on managing risks.
The essence of survival in the crypto world: only those who survive are winners.
Eight years in the crypto world have taught me that this market is not about who makes money the fastest, but about who survives the longest.
Most of the once-glorious 'contract masters' have disappeared in several black swan events. Meanwhile, those stable and low-key long-termists have gradually accumulated considerable wealth.
The crypto world is not a casino, but a battlefield for converting cognition into value. Every penny of your profit comes from your understanding of the market and self-discipline.
If you are struggling in the cryptocurrency world, you might want to try these three iron rules. They seem simple, but require great willpower and discipline to stick to. But please believe, as long as you can adhere to these principles, there is hope to survive in this cruel market and achieve steady growth.
Remember, in this market, lasting longer is more important than making quick profits. To survive is to have the qualification to talk about making money. Follow Xiang Ge to learn more about the first-hand information and precise points in the crypto world; learning is your greatest wealth!
