When I first entered the market with $70,000 ten years ago, I never imagined that trading coins would become my livelihood. From facing liquidation three times to understanding the pulse of a bull market, from being a naive trader chasing highs and cutting losses to comprehending the capital games behind K-lines, those nights spent staring at the charts at 3 AM, those moments of my account values swinging like a roller coaster, have finally crystallized into the survival logic I can articulate today. This is not textbook theory but a practical guide forged from real money experiences. If you also want to survive and earn steadily in this market, these words are worth embedding in your bones.
I. Hidden in trends is a cash machine; don’t let volatility scare you away.
Many people fail because they 'can’t hold on.' I have seen too many retail investors panic and take profits after earning 20% in the early stages of a bull market, only to watch the coin double afterward. Remember, the inertia of trends is far more stubborn than most people imagine — once a rally takes shape, it will not abruptly halt due to short-term fluctuations. Those large pullbacks that make you anxious are essentially the main players cleaning up leveraged longs: After the leveraged players are forced to liquidate, floating positions decrease, allowing the market to go further.
During the 2021 bull market, when the Ethereum I held fell from $4000 to $2800, 80% of my friends sold at a loss, reasoning that 'the bull has run away.' But I focused on the on-chain data: net outflows from exchanges continued to rise, and whale addresses were quietly accumulating. And the result? Three months later, ETH soared to $4800. So when facing a pullback, rather than panic selling, it's better to clarify two numbers: Is your cost basis within a safe margin? Has the fundamental situation of this coin deteriorated? As long as those two points hold, enduring the fluctuations is waiting for profits to mature.
II. The 'needle' in a bull market is money for those who are prepared.
Experienced players know that the K-line chart in a bull market never lacks long lower shadows — those sudden drops of 10%-20% are essentially the main players testing the market's absorption capacity. At this time, two operations are most taboo: being fully leveraged and getting liquidated, or watching with an empty position and missing opportunities.
My approach is to always keep 30% of my capital for 'golden opportunities.' When Bitcoin dropped from $10,000 to $6,000 in 2017, I gradually invested my spare funds, averaging my cost down to $7,500; after the crash on March 12, 2020, I went all-in on mainstream coins at $3,800. While these 'needles' hurt others, they become opportunities for those who are prepared. But remember: Only when a major coin drops more than 20%, mainstream coins follow suit, and market sentiment turns fearful, is it a signal to act. Chasing after a high only to get stabbed by a needle is the price of greed, not an opportunity.
III. Position management is not a technique; it's a qualification for survival.
After trading coins for ten years, I have seen too many cases of individuals falling back to square one after having amassed tens of millions; 90% of the issues stem from position management. Some people go all-in on a single sector, only to watch others make money when the sector rotates; others chase highs and cut losses, only to see the coins they just sold surge, while their newly bought ones get trapped, leading to a complete psychological collapse.
My position iron rule is '30-30-40': 30% of the position is held in major coins like Bitcoin and Ethereum for stability; 40% is allocated to 2-3 strong sectors (like last year's DeFi and this year's AI concept); the remaining 30% is flexibly allocated, either waiting for pullbacks to accumulate or catching short-term hotspots. More critically, once you buy and hold, don’t get restless — in 2022, the SOL I held rose from $20 to $120, experiencing three pullbacks over 30%, yet I didn’t budge and ended up earning four times more than those who frequently traded. Remember, even the worst quality coins will see gains in a bull market; frequently switching vehicles will only cause you to miss the true major waves.
IV. Find opportunities in the criticism, and hide your retreat in the praises.
The market always makes money for contrarians. In 2019, when LINK rose from $1 to $20, the forum was filled with accusations of it being a 'pyramid scheme'; before AXS exploded in 2021, many mocked that 'making money from games is a scam.' But when a certain coin is being shouted as a 'hundredfold coin' across the internet, it is often not far from the peak — just like when Bitcoin surged to $60,000 in 2021, even the aunties in the neighborhood were asking how to buy; by then, I had already started reducing my holdings.
The key to judging divergences lies in two points: First, the direction of funds — no matter how loud the criticism, as long as whale addresses are accumulating and there is a net outflow from exchanges, it deserves attention; second, the fundamentals — if the project's progress exceeds expectations, even if there are short-term doubts, long-term funding will recognize it. Conversely, when everyone is hyping logic and shouting price targets, no matter how optimistic you are, cut your position by 30% first — the market never lacks opportunities, but it lacks capital.
V. Short-term trading is a trap, long-term investing is a practice.
In the first five years, I was obsessed with short-term trading, making dozens of trades a day, paying hundreds of thousands in transaction fees, and when I finally calculated, I realized I hadn’t made as much as I could have with a long position. I later understood: the volatility of the crypto market is ten times that of the stock market; short-term trading is like trying to catch flying knives in a storm — occasionally you might catch one, but eventually, you will get hurt.
I bought Litecoin in 2017 for $120, and after a 40% drop, I held for 8 months before exiting at $1300; I bottomed out on DOT in 2020 and held for 15 months, rising from $3 to $40. These profits were not achieved by staring at the charts but were earned by trusting the trend. Of course, long-term investing isn't about stubbornly holding — if the fundamentals of a coin deteriorate (like if the team runs away or faces regulatory issues), decisive loss-cutting is essential. But as long as the logic is still intact, don’t be scared away by short-term fluctuations: In a bull market, holding onto a tenfold coin's core is not about technology, it's about patience.
VI. The pullbacks in a bull market are 'check-ups;' three tests are necessary to pass.
Novices always think that one major pullback signifies the end of a bull market, but that’s not the case. The 2017 bull market experienced four pullbacks of over 30%, and in 2021 there were five crashes, with someone always shouting 'the bull is gone,' yet the market always reaches new highs. This is because big funds need to use pullbacks to complete their chip exchanges: institutions accumulate at low levels, while retail investors panic and hand over their chips. This cycle must repeat to push the market higher.
The signal to judge whether a pullback has finished is very simple: Look at whether the major coin has maintained critical support levels (such as previous highs or the 200-day moving average), and whether mainstream coins have stopped falling before the major coin. During the May 2021 pullback, Bitcoin dropped below $40,000, but Ethereum stabilized at $2,800, and funds flowed back from altcoins to mainstream coins — that was a signal to increase positions. Remember, every pullback in a bull market is an 'opportunity to get in'; the difference is whether you have cash and whether you dare to act.
VII. Practical strategies: A 'sure-win' approach proven over ten years.
(I) Trend-based trading: Let profits run on their own.
Coin accumulation tactic: Choose 3 high-quality coins that you have thoroughly researched (for example, those with sound ecosystems, reliable teams, and in the top 20 by market cap), and invest 10% of your salary each month, regardless of price fluctuations. I started dollar-cost averaging Ethereum in 2018 at an average cost of $150, and now that investment has multiplied by 30 times.
Tracking capital flow: In a bull market, capital always flows from major coins to mainstream coins, and then from small mainstream coins to promising altcoins. In the first half of 2023, BTC led the way, and after July, funds shifted to mid-cap coins like SOL and ADA; catching this rhythm can double your profits.
(II) Trading strategy in a volatile market: Buy low, sell high to roll profits.
Pyramid bottom-fishing: For example, if a major coin drops from $50,000, add 10% position for every 5% drop, ensuring that the total position does not exceed 50% by the time it falls to $40,000. This method can keep costs at a relatively low level, allowing you to profit once it rebounds.
Moving average strategy: Focus on the 50-day and 200-day moving averages on the 4-hour chart; buy low and sell high when the price is between the two lines, cut losses if it falls below the 200-day MA, and increase your position when it stands above the 50-day MA and is trending upwards. This is suitable for those who don't have time to monitor the markets.
(III) Risk control: Surviving a bear market is essential to reap benefits in a bull market.
Add to your position in line with the trend: Only when your holdings yield over 30% profit and the trend is clear should you use 50% of your profits to increase your position. For example, if the coin you bought rises from $10 to $15, you would add to your position using half of the $5 profit, ensuring that any pullback does not impact your principal.
Do not increase your position against the trend: This is a bloody lesson! In 2018, when EOS fell from $100 to $50, I increased my position, and it eventually dropped to $2, almost leading to liquidation. Unless you can confirm that it is the bottom, increasing your position against the trend is suicidal.
VIII. The last ten heartfelt words, understand them to avoid losing millions.
The money in crypto is endless, but the losses can be complete; taking profits isn’t cowardice, it’s wisdom.
The major coin won’t collapse; if it really does, the entire market will be gone, and the operators are more afraid of a crash than you are.
It's far more difficult for major players to unload than for retail investors; their rallies are all about finding someone to take over — don’t be the last one holding the bag.
Focus on coins that show strong volume at the bottom during declines — either the main players are accumulating, or there are big funds with confidence.
The pain of a washout is often strongest just before dawn; enduring another day could mean the arrival of sunny weather.
The essence of mid-term trading: Heavily invest in one coin, keep 10% for trading, sell when it rises significantly, and buy when it falls significantly.
For short-term trading, focus on three aspects: K-line patterns, market enthusiasm, and capital flow speed — all are essential.
Coins at the bottom are the safest — the longer the price stays flat at a low level, the greater the potential for an explosion.
Do not chase coins that are accelerating; however, you can follow those that have just begun to accelerate — a steep slope is the signal to exit.
In technical indicators, divergences are ten times more useful than the values themselves (for example, if the price hits a new low while MACD does not, that is a bottom signal).
Trading coins for ten years, my biggest realization is: This industry doesn't earn luck money; it's about cognitive differences and execution ability. Some become rich through a single market cycle, but those who can sustain a living from trading rely on stable systems. If you find these experiences useful, consider following me — I will share more market analysis tips, position formulas, and first-hand news from the community. The crypto world is never a solo venture; being in a reliable community can save you three years of detours.
To be honest: The market is always changing, but human nature does not change. Those who can control their greed and fear have already made their money. Which category do you think you belong to? Let's chat in the comments; it might help you avoid the next pitfall.
