After three years of navigating the cryptocurrency world, I have experienced the despair of overnight liquidation and the ecstasy of tenfold returns. These survival rules, earned through hard cash, can help you avoid at least five years of detours if you understand them. Behind each rule lies the practical experience condensed from countless painful lessons.

One, The Lifeline for Small Capital Breakthroughs: The Iron Rule of 200,000 Principal

For retail investors with a principal below 200,000, contract trading is essentially a gamble. Starting with a principal of 50,000 and executing a rolling strategy, capturing three opportunities to double can surpass the million mark. Looking back at the hundredfold trend of Dogecoin in 2021, the hidden rules were already in place before the explosion: when the perpetual funding rate on exchanges exceeded 0.1%, the total liquidation amount exceeded 500 million for three consecutive days, and community activity surged by 300%, wise investors had already withdrawn their principal and continued to play with profits. Remember, surviving in the crypto world is more important than anything else.

Two, The Cruel Truth of Monetizing Cognition: The Value of Simulation Trading

Force yourself to conduct three hours of review every day; this is a mandatory course for survival in the crypto world. Always remember this formula: Simulation Trading Returns × 0.3 ≈ Real Trading Returns. When you can achieve continuous 300% returns in a simulated environment for three months with a maximum drawdown controlled within 15%, then consider entering the real trading battlefield. Pay special attention to sudden market movements between 3 AM and 5 AM, as this is a litmus test for your trading mindset.

Three, The Countdown to the Cashing In of Positive News: Warnings from On-Chain Data

In the face of unexpected positive news, always remember the 'Three-Minute Rule': the first three minutes after a market launch often represent a trap. Use tools like Nansen to check on-chain data; if the transfer volume of the top 10 addresses surges by 200% within one hour after the news is announced, you must sell at market price immediately. The lesson from the night before LUNA's collapse in 2022, when whale addresses collectively moved 36 hours in advance, is still fresh in memory.

Four, The Bloody Harvest During Holidays: The Truth Behind the Data

72 hours before major holidays such as the Spring Festival and Christmas, be sure to reduce your position by 50%. Statistics show that from 2020 to 2023, the average market drop in the 48 hours before the Spring Festival reached 23.6%. Coupled with Coinglass's long-short ratio indicator, when the long-short ratio exceeds 1.5, the risk of liquidation before the holiday is as high as 82%. Do not go against historical data.

Five, Capital Management Techniques: The Wisdom of the 532 Formation

Adopt a scientific 532 capital allocation strategy: 50% in mainstream coins (BTC/ETH), 30% in new public chains (SOL/AVAX), and 20% in MEME coin speculation. Whenever profits exceed 30%, immediately transfer 50% of the profits to a cold wallet. Using the compound interest formula, as long as you achieve five instances of 30% returns, your principal can grow 4.56 times.

Six, The Golden Code of Short-Term Trading: The Application of Technical Indicators

Focus on the combination of 15-minute candlesticks and the EMA21 moving average; when the trading volume exceeds three times the 20-day average, the trading win rate can reach 68%. Pay special attention to the time window from 10:00 AM to 11:00 AM Eastern Time, which is when Wall Street institutions concentrate their adjustments, often containing trading opportunities.

Seven, Opportunities Amidst Crashes: The Waterfall Three-Wave Law

During market crashes, remember the Waterfall Three-Wave Law: the first wave harvests retail investors, the second wave squeezes leverage, and the third wave crushes faith. When the futures funding rate falls below -0.05%, the probability of a market rebound exceeds 75%. The 2023 Bitcoin rebound from 20,000 to 30,000 is a perfect illustration of this law.

Eight, The Art of Dynamic Stop-Loss: The Lifeline to Protect Your Principal

Setting dynamic stop-loss lines is key to risk control: set the first stop-loss at ±3% of the opening price, and immediately reduce your position by 50% if it drops below; if it continues to fall by 2%, then close all positions. Once losses exceed 5% of the principal, trading must be paused to adjust your mindset. In the crypto world, controlling risk is always more important than pursuing profits.


These survival rules may not guarantee overnight wealth, but they can significantly increase your chances of survival in this brutal market. Remember, there are no perpetual winners in the crypto world, only survivors who understand to respect the market and strictly follow their strategies.

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