The most painful truth in the crypto world is that 90% of people lose not because they can't find great coins, but because they don't understand the most basic survival rules. I've seen too many retail investors rush into the market with their hard-earned money, buying coins based on feelings and relying on luck to hold them, only to later complain that 'the crypto world is a scam.' In fact, the logic for making money in this field is not complicated; the key is whether you can stick to these 7 bottom lines.
One, before buying coins, ask yourself 3 questions to avoid 80% of the pitfalls.
Many people buy coins like buying groceries—following others blindly without knowing what they are buying. The biggest pitfall I fell into two years ago was following the trend to buy a 'metaverse concept coin' without even reading its white paper, and when the project team fled, the coins in my hands turned into a useless string of code.
I later developed a habit: for any coin, I must understand three things before buying:
Technical background: Is the 'innovation' mentioned in the white paper real technology or just hype? For example, does the blockchain's consensus mechanism and application scenario have actual value? Coins that can't even explain their technical logic, no matter how popular, should be avoided.
Market positioning: What problem does it solve? Is it like Bitcoin doing 'digital gold' or like Ethereum doing 'decentralized platforms'? Coins without a clear positioning, no matter how sharply they rise, are bubbles.
Is the team reliable? Does the founder have a public resume? What is the code submission frequency? I once fell into a pit because I ignored this point, and a project I invested in disappeared three months after launch.
Two, the core of position management: make your money 'live' longer.
The risk in the crypto world has never been about 'how much it drops,' but rather 'can you withstand the drop.' I've seen too many people go all-in on a certain altcoin, elated when it rises, but collapsing in despair when it falls, ultimately cutting losses in panic. True experts always keep their positions 'able to attack when advancing, able to defend when retreating.'
My position formula is: 5:3:2
50% of your position should be in mainstream coins (like Bitcoin and Ethereum), which have relatively low volatility and can stabilize your base.
30% allocated to 2-3 leading potential sectors (such as the current Layer 2, AI concept coins) for high returns;
20% kept as cash, to buy more when prices crash, ready to increase positions when opportunities arise.
More importantly: always use 'spare money' for trading. This means that if you lose this money, your quality of life will not be affected. The reason my mindset collapsed in the first three years was that I invested money meant for buying a house; I couldn't sleep at night when it dropped, and all my trades were wrong.
Three, long-term holding is not about 'stubbornly holding'; it is about 'choosing the right target and being patient with it.'
People often ask me, 'What if I can't hold onto my coins?' The issue isn't 'can't hold'; it's that 'you don't believe in the coins you bought.' I've held onto Ethereum since 2020, experiencing 3 pullbacks of over 50%, but I've never panicked—because I know its ecosystem has been expanding, with increasing users and transaction volume; short-term fluctuations cannot change the long-term trend.
But long-term holding does not equal stubbornly holding on:
If the fundamentals of a coin change (e.g., core team members leave, technology becomes obsolete), you must decisively cut losses;
Coins like Bitcoin and Ethereum, which have been validated through multiple bull and bear cycles, have a very high win rate for long-term holding; while those with difficult names and concepts, 'long-term holding' will only lead to deeper losses.
Four, the essence of chasing highs and cutting losses: being led by market emotions.
The easiest way to lose money in the crypto world is to rush in when you see others making money and to cut losses when you see prices drop. In 2021, when Dogecoin surged, a friend of mine bought in at a high price, only to see it drop from $0.7 to $0.1, and he only dared to cut losses after an 80% loss—when he cut losses that day, it just happened to be the bottom.
To avoid such tragedies, remember this: the more the market is euphoric, the calmer you need to be; the more the market is panicking, the clearer you need to think.
When everyone in the group is shouting 'hundredfold coins' and 'I've missed out,' it's likely a top signal;
When you open the market software and everything is green, and even experienced players are saying 'the bear market is coming,' you might as well look at those quality coins that have been mistakenly killed.
Five, stop-loss and take-profit are not a numbers game; they are a discipline for survival.
I've seen the most regrettable retail investors: they buy coins and make a 50% profit but are reluctant to sell, only to panic and sell at a loss when it drops back to the cost price. Some even refuse to cut losses after a 30% drop, hoping it 'will come back,' only to end up deeply trapped.
My ironclad stop-loss and take-profit rules:
Stop-loss: if a single loss exceeds 15%, you must cut your position (mainstream coins can be relaxed to 20%). Stop-loss is not giving up; it is to preserve capital for the next battle.
Take-profit: sell in 3 batches. Sell 1/3 when it reaches 50% of expected profit, sell another 1/3 when it reaches 100%, and set a 'breakeven stop-loss' for the remaining 1/3 (for example, liquidate if it drops to the cost price). Don't be greedy by trying to 'sell at the highest point'; if you can capture profits in the mid-range, you're already ahead of 80% of people.
Six, news policies are more important than K-lines, but don't be fooled by clickbait.
The crypto market is sensitive to policies. When China introduced regulatory policies in 2021, Bitcoin dropped 30% in one day; in 2023, when the U.S. approved a spot ETF, Bitcoin surged from $30,000 to $48,000. Those who don't understand how to read the news can easily get caught in such volatility.
When reading the news, focus on the core:
Don't just look at the headlines; analyze the 'targeted' nature of the policies. For example, if a country bans cryptocurrency trading, is it for all coins or just exchanges? Does it affect coins in decentralized wallets?
Focus on 'long-term impact' rather than 'short-term sentiment'. For example, regulatory tightening may be a short-term negative, but it will eliminate inferior projects, which is beneficial for quality coins in the long run.
Seven, learn as long as you live; the crypto world does not eliminate smart people, it only eliminates those who stop evolving.
Five years ago, I made money trading mainstream coins, three years ago I profited from DeFi mining, and now I'm studying Layer 2 and AI concepts—strategies in the crypto world change every year, and those who cling to old experiences will eventually be eliminated by the market.
How can ordinary people learn? No need to read thick books; just do these 3 things:
Spend 20 minutes each day reading industry news (such as the progress of core projects and newly introduced policies);
Research a new coin's white paper every week (you don't need to understand it fully; focus on its innovations and implementation difficulties);
Review your trades once a month (what you did right, what was an emotional decision, and how to improve next time).
In the cryptocurrency industry, making big money relies on luck, while making steady money relies on logic. I've seen too many people using complex technical indicators to analyze, only to end up losing everything—because they couldn't even stick to the most basic survival rules.
These 7 points may seem simple, but less than 10% can actually achieve them. If you can adhere to them, even if you can't catch a hundredfold coin, at least you can survive in the crypto world, and those who survive will eventually encounter their opportunities.#稳定币监管风暴 #以太坊突破3700
