With small funds in the cryptocurrency world, the first step is not to make big money, but to learn how to avoid losses.

Many people start with the mindset of doubling their investments, making heavy bets, and chasing skyrocketing gains, but most losses are not due to a lack of opportunities, but because they cannot control their emotions, and the first wave of losses crushes them.

Here are the 8 trading principles I have always adhered to. Ultimately, it is about preserving your capital first, then talking about profits.

1. If you're trapped, don't think about turning the tables overnight.

Getting trapped is common, but the real danger is wanting to make it all back at once. The only goal at this time is to lower your cost and regain control, not to rush for results.

2. When the market is quiet, risks are easiest to overlook.

A flat market with no fluctuations does not mean safety. Many dangers in the market quietly arise when you let your guard down.

3. Rapid increases are often not opportunities, but choices.

A market that rises too quickly is destined for digestion. When prices pull back and patterns converge, it indicates that the market is repricing.

4. Good positions are never chased into.

Comfortable buying points usually appear during price pullbacks and market panic. The key to success is being able to resist the urge to buy when prices rise and being bold enough to enter when they fall.

5. In the absence of extreme market conditions, try to stay calm.

Do not chase prices, nor blindly bottom-fish. In uncertain markets, it is wiser to remain in cash than to make random trades.

6. Follow the trend, watch key support and resistance.

Focus on support levels when the price rises and on resistance levels when it falls. Trading against the trend may yield short-term gains, but in the long run, it is a waste of time.

7. Position management determines success or failure.

Being fully invested or heavily leveraged will only eliminate your margin for error. The market will always have opportunities, but you may not always be able to stay in the game.

8. What ultimately determines success or failure is not technology, but emotion.

Technical analysis can be learned by anyone, but whether you can stay calm, not chase prices, and not panic sell is the key to whether you can survive in the market long-term.

The key in the cryptocurrency world is not to see who can explode the fastest in the short term, but to see who can stay in the market for a long time. If you protect your capital well, profits will naturally follow.