I used the dumbest method to trade cryptocurrencies, turning 50,000 into 5 million through practical experience.

In June 2021, my account balance was 35,000 yuan. Due to blindly following the trend and trading altcoin contracts, my 6 million principal evaporated.

After spending half a month in the bar, a friend's remark, "BTC has dropped to 30,000," made me decide to take one last shot with the remaining 50,000.

This time I did only three things, but they completely changed my fate:

1. Cut off all illusions.

2. Set strict rules.

Never exceed a single position of 5% (i.e., 5,000 yuan).

Strictly control stop-loss at 3% of the opening price.

For every 100% profit, forcibly withdraw 30% of the principal.

3. Only focus on mainstream coins: stubbornly trade BTC/USDT perpetual contracts, stay away from the temptation of altcoins.

The first battle was full of dangers. On April 10, I noticed that CME had institutional premium long positions, while Binance perpetual contract funding rates were negative.

I decisively went long with 10x leverage at 24,100, with a 5% position.

When the price dropped to 23,500, my account suffered a floating loss of 6,000 yuan, nearing the stop-loss, I discovered that shorts were opening positions without considering costs.

Against human nature—adding margin and reducing leverage, I ultimately took profit at 27,900, gaining 38,000 in a single trade, and my principal returned to 138,000.

The ETH market in June was a true life-and-death test. Amidst a bullish market, I saw OKX's open interest surge but on-chain transfer volume was insufficient, a typical signal of a bull trap.

I decisively shorted at 1,930, and as I neared stop-loss, I noticed the funding rate skyrocketing, I quickly adjusted my strategy, ultimately closing at 1,800, with my principal exceeding 250,000.

On Thanksgiving in November, I caught key signals of a sharp reduction in Binance's BTC reserves and a narrowing of Grayscale's premium rate. I went long at 34,000 with 5x leverage, wildly earning 120,000, directly breaking through 500,000 in principal.

By March 2024, through strictly executing this position management strategy, my principal miraculously rolled to 5.2 million.

Now, my computer screen is always divided into three: the left screen shows CME position data, the middle screen shows changes in Binance's reserves, and the right screen monitors on-chain indicators.

If you are also deeply in losses in the crypto circle or want to make a comeback with small funds, before you start, please ask yourself: Can you treat each trade's stop-loss order as an untouchable lifeline, just like I did?

The trade that helped me break through 2 million in principal hides a key order placement technique!