At 32, looking at the reminder of 20 million in my bank account, I suddenly remembered my 24-year-old self who just entered the market — with 300,000 principal rushing into the crypto world, squatting on the rooftop all night after the first liquidation. In 8 years, from losing to having only 60,000 left, to now having a passive income of 300,000 per month, it’s not luck, but four 'anti-human nature' skills honed after being battered by the market.

1. Cognitive Breakthrough: Don't be a 'K Line Master', be a 'Rule Executor'

When I first entered the market, I spent all day studying MACD golden crosses and Bollinger Band breakouts, thinking that mastering the techniques would lead to profits. After going all-in on Dogecoin in 2021, my 300,000 principal dropped to only 60,000, I finally understood: the crypto world is an ATM for cognition, not a playground for techniques.

My 'Three-Dimensional Learning Method' is 10 times more effective than burying my head in K lines.

  • 40% Energy for Financial Education: Using futures thinking to play spot trading. During the '519 crash' in 2021, I opened a BTC short with 10% of my position, hedging 80% of my spot losses.

  • 50% Time on Practical Trading: Each month, take 1% of the principal to experiment. In 2023, I chased a certain meme coin and lost 30,000, but learned that 'any coin with an average daily trading volume below 50 million shouldn't even be touched.'

  • 10% Resource Mixing: Joined 3 communities worth tens of millions, found out a month in advance in 2024 that BlackRock was going to launch an ETH ETF, and made 4 million by positioning early.

The harshest is 'Error Review': Every Saturday, I print out the delivery orders; for each mistake, I stick it on the wall. Now it’s filled with 27 sheets of A4 paper — remember, the speed of making money in crypto depends on the speed at which you correct your mistakes.

2. Fund Allocation: This set of numbers can help you lose 80% less.

The lesson from going ALL IN on Dogecoin in 2021 taught me one principle: position management is a matter of life and death. Now my fund allocation looks like a 'pyramid', the higher up, the more stable.

When starting with 300,000, do not exceed 20% in a single coin.

Last year, when SOL broke through the 20-day line, I used 20% of my 300,000 principal (60,000) to open a 2x leverage position, adding another 30,000 after a surge. In the end, I made 120,000. If I had gone all-in at first, a 10% correction in between would have led to liquidation.

After funds reach 5 million, leverage should be reduced to zero.

Currently, 50% of my coins are BTC and ETH (bear-resistant), 30% are BNB and SOL (platform tokens + leading public chains), and 20% are halving coins (for example, LTC is halving in 2024, bought in at 80 and made 2.5 times profit). I sell 5% every time it rises by 10%, and add 3% when it drops by 5%, never gambling on a single bet.

Remember: the scariest thing in crypto is not the crash, but using 100% of your position to welcome the crash. Last year, a fan with 5 million fully invested in a certain altcoin lost 90% in three days, and is still working to pay off debts.

3. Stop-Loss and Take-Profit: The 3% iron rule helped me survive 3 crashes.

Stop-loss should be as quick as cutting meat.

If mainstream coins drop by 3%, you must cut; if altcoins drop by 5%, run immediately. In 2022, when BTC dropped from 30,000 to 29,100, I cut without hesitation, although I lost 9,000, I avoided the abyss that followed when it fell to 15,000.

Don't be a 'Greedy Ghost' when taking profits.

Conservative strategy: Take 10% profit first and close half; set the remaining position to 'protect principal stop-loss.' Last year, when ETH rose from 1800 to 1980, I first pocketed 90,000, and even if the rest dropped back to 1800, I wouldn’t lose — this tactic helped me avoid countless 'roller coasters.'

Aggressive strategy: Move the stop-loss up every 5% increase. When LTC rose from 80 to 280, I used a 2% trailing stop profit, eventually exiting at $240. Although I didn’t sell at the peak, I still made an 80% profit, which was enough.

4. Choosing Coins to Avoid Pitfalls: Only play with 'Honor Roll Students', stay away from 'Problematic Youth.'

Safe targets are these three categories.

  • BTC/ETH (accounting for 50% of the position): Bought ETH at $300 in 2018, sold in batches at $6000 in 2021, making 20 times profit.

  • Platform tokens + leading public chains (accounting for 30%): BNB went from $200 to $800, relying on the hard logic of 'exchange profit growth.'

  • Halving coins (accounting for 20%): LTC halving in 2024, positioned six months in advance, bought at 80 and sold at 280, making a clear profit.

Three categories of coins that will crash if touched

  • Any coin with an average daily trading volume below 50 million: In 2023, I chased an altcoin, bought it, and it dropped immediately. I wanted to sell but found no one to take it, ultimately losing 70%.

  • Weekend sudden surges: 9 times out of 10, it's a bait from the big players. Last year, a certain coin surged 30% on Sunday and dropped back to its original form on Monday, trapping a bunch of retail investors.

  • Teams with vague information: If you don’t even know who the founder is, would you dare to give them your money? I fell into this pit in 2022, and when the project team ran away, my 150,000 directly evaporated.

Lastly, let me say something heartfelt.

Those who make money in crypto understand one principle: to win, one must act against human nature. When others panic and cut losses, you must dare to add positions; when others are frantically chasing rises, you must know when to stop.

From 300,000 to 20 million, I've liquidated 3 times in 8 years, cried countless times, but each time forced myself to follow the rules — the trading system is like a steering wheel; no matter how bad the road, if you grip it tightly, you can reach the destination.

Remember, the crypto world is not a casino, it’s a place for cultivation. If you can control your actions and stick to the rules, money will naturally come to you.