Six Rules for Survival in the Cryptocurrency World: Stay Away from Liquidation, Move Towards Stability.

1. Ironclad Profit and Loss Management:

Take Profit: Restrain greed, set preset targets. Cryptocurrency prices will not rise indefinitely; realizing some profit is already a success.

Stop Loss: Execute decisively! Abandon sunk costs, exit upon a breakdown. 'Amputation for survival' protects the principal; fantasizing about a reversal is costly.

Core: There is no end to making money in cryptocurrency, but you can lose all your principal!

2. Refuse Frequent Trading:

Don’t fantasize about 'double profits from both sides'; being able to profit from one side is enough.

Beware of transaction fees: Especially with high-leverage contracts, losses occur immediately (1-2%). Ensure potential gains far exceed costs; otherwise, trading is meaningless.

3. Learn to Wait with No Position:

If you don’t understand the market, don’t open a position! 'Missing out' is far better than 'losing money'.

Trading is a game of probabilities; entering when the direction is unclear is like 'opening a blind box'. Be patient and wait for high-certainty opportunities. (Hedging can reduce directional risk but is not a panacea)

4. Gradually Accumulate:

Abandon the fantasy of getting rich quickly. Use light positions (e.g., using 100 principal to open 10 times leverage) to steadily accumulate (e.g., earn 10-20 per trade).

Pursue a win rate (60-70%): A few trades a day with steady profits far surpass heavy gambling. Little by little, compound interest can be substantial.

5. Never Over-Leverage:

Absolute taboo! Black swan events (such as sudden bad news) can instantly destroy heavily leveraged accounts.

Use light positions to test the waters, prioritize stability. The cryptocurrency world is not lacking in opportunities (still available in the next 10-20 years); you must be alive to seize them. Don’t be misled by short-term illusions.

6. Strive for Unity of Knowledge and Action:

The hardest but most crucial! Overcome human weaknesses (greed, fear, luck).

Eliminate unplanned, arbitrary trades. Success requires:

A mindset far beyond the ordinary

The courage to act decisively when the time is right

Discipline to exit decisively at a stop loss

The determination to 'amputate for survival'

Core Summary:

The key to stable profits is risk control (stop loss/light positions/no positions) + disciplined execution (take profit/not frequent trades/not over-leveraging) + mindset cultivation (unity of knowledge and action).

Remember: Preserving the principal is the top priority; opportunities are always reserved for those who are alive and prepared.