Introduction: Stop asking 'which coin will rise', first understand 'how to buy without losing'.
When I first entered the coin market, I was like a headless fly: buying Bitcoin because others said it was good, jumping into a coin because someone in the group said it would pump, and as a result, I lost 60% over 3 years. It wasn't until the 4th year that I realized: 90% of losses in the coin market are not because 'the wrong coin was chosen', but because the most basic 'survival logic' was not understood.
Now I can earn steadily, not because of 'insider information', but because of 7 'anti-human' iron rules. These rules seem simple but help you avoid 80% of the pitfalls—even if you're a beginner, following them can save you 3 years of detours. 1. Learn to 'understand coins' before talking about 'making money'. Many people buy coins like unboxing: they buy what sounds good, and when they hear others shouting for a price increase, they buy in. But the truth in the coin market is: out of 100 coins, 99 will fall back, and only 1 will rise in the long term.
Don't be fooled by 'concepts'; look for 'real value': to determine if a coin is worth buying, first ask 3 questions.
What problem does it solve? (For example, Bitcoin solves 'decentralized storage of value', Ethereum solves 'smart contracts')
Is the team really working? (Look at code submission frequency, whether there are real applications, don't trust projects that 'only release white papers')
Which exchanges has it been listed on? (Coins listed only on small exchanges are 90% likely to be scams; they should at least be listed on the top 3 exchanges)
When I choose coins now, I spend 1 week researching the above 3 points. Although I've missed many 'short-term pump coins', I've avoided more 'zero-value coins'—remember, making money requires 'not stepping into pits'.
2. Risk management: don't put 'all your eggs' in 'baskets that can break at any time'.
The most dangerous in the coin market is not the crash, but 'putting all your money on one coin'. In 2018, I went all in on an altcoin, going from a 50% profit to losing everything, and only then did I understand that 'diversified investment' is not a cliché.
Positioning should be like a 'pyramid': stable assets should take the majority, while risky ones should take a smaller share.
60% of the capital should be used to buy 'mainstream coins that can recover even when they drop significantly' (such as Bitcoin, Ethereum); these coins can often rebound even after a 50% short-term drop, serving as the 'ballast' of your portfolio.
30% of the capital should be used to buy 'potential second-tier coins' (like public chains or DeFi projects with real applications); these coins may rise quickly, but set a stop-loss (sell if they drop 20%).
The remaining 10% can be used for 'thrill-seeking', buying small-cap coins, but remember: this part of the money, even if it all goes to zero, won't affect your life.
In last year's bear market, my position in mainstream coins dropped by 30%, but because I didn't go all in and with the rebound of second-tier coins, I controlled my overall loss to under 10%—keeping the principal allows for a chance to recover.
3. Holding long-term is not 'stubbornly holding on', it's 'grabbing the big and letting go of the small'.
Many people understand 'long-term holding' as 'buying and not moving', resulting in turning profits into losses. The true 'long-term investment' is 'grasping major trends while letting go of small fluctuations'.
Hold onto mainstream coins, and take profits on altcoins.
Coins like Bitcoin and Ethereum, which have consensus, can be held for 3-5 years: in 2017, I bought 10 Bitcoins, and despite experiencing a drop from 20,000 to 3,000, I didn't sell, and now it's increased tenfold—this type of coin's value is 'nurtured by time'.
Don't talk about 'long-term holding' for altcoins; sell when they rise 50%-100%: last year, I bought a certain public chain coin for 5 yuan, it rose to 12 yuan, and I took profits. Although it later went up to 15 yuan, I have no regrets—altcoins' 'high points' are fleeting, and securing profits is what matters.
Remember: long-term holding is not 'stubbornly enduring losses', but 'ignoring short-term fluctuations when the trend hasn't changed'. If a coin's fundamentals change (like the team running away or technology being eliminated), continuing to 'hold long-term' is foolish.
4. The most profitable moves are 'buying when others are panicking, selling when others are frenzied'.
Chasing highs and selling lows is human nature, but those who make money in the coin market all 'do the opposite'. At the peak of the bull market in 2021, everyone around me was shouting 'Bitcoin can reach 1 million', but I sold 60% of my position; in the bear market of 2022, when everyone was scared of 'dropping below 10,000', I actually increased my Bitcoin holdings—these two moves made me an extra 3 million.
A simple way to judge 'panic' and 'frenzy'.
Open the news: if everywhere is filled with 'myths of getting rich in the coin market', and even the aunt at the vegetable market is discussing buying coins, it's 'frenzy time', and it's time to sell.
Look at the data: if the 'liquidation volume' on exchanges suddenly surges, and trending topics on Weibo are all about 'Bitcoin crashing', it's 'panic time', and you can buy in batches (don't go all in at once, increase your position in 3-5 times).
The core of reverse thinking is not 'going against the market', but 'not being swayed by emotions'—be more vigilant when others are greedy; be more patient when others are fearful.
5. Stop-loss and take-profit: it's not a 'technical skill', it's a 'lifesaver'.
I've seen too many people 'make money 10 times and lose it all once': they are reluctant to sell when prices rise, and unwilling to stop losses when prices fall, ultimately turning profits into losses. But true experts understand: stopping losses means 'minimizing losses', while taking profits means 'locking in profits'.
Stop-loss should be 'firm': run away when losing 10% at most.
Before buying any coin, set a 'stop-loss line': for example, if you buy a coin for 10,000 yuan, sell if it drops to 9,000 yuan, with a maximum loss of 1,000 yuan. Don't think 'let's wait and see if it may rebound'; in the coin market, crashes often 'do not give you the chance to wait'. I now set a stop-loss for every transaction, and even if I look back and think 'I sold too early', I will never regret it—preserving the principal allows for future opportunities.Don't be 'greedy' when taking profits: sell in 3 batches, secure the profits.
If a coin rises 50%, sell 1/3 first; if it rises 100%, sell another 1/3; the remaining 1/3 can be used to 'bet for higher', but set a 'trailing stop-loss' (for example, sell everything if it drops 10% from the high). Last year, when SOL rose from 20 to 40, I used this method to sell; although I missed the last 5 yuan increase, the profits I secured were already quite satisfying.
6. Policies and news: the 'invisible hand' more important than K-lines.
The coin market is a 'policy-sensitive market': if a country says 'we need regulation', it may crash; if a large institution announces 'buying', it may soar. Those who ignore policies will eventually be educated by the market.
Spend 10 minutes every day reading 'key news'
Focus on: US SEC (regulatory policies), top exchanges (listing/delisting announcements), major institutions (like Grayscale, BlackRock's movements).
Don't panic when you see 'bad news': for example, if regulatory policies are introduced, first check 'is it for all coins or certain types'. Mainstream coins often rebound after a drop, while altcoins may drop to zero directly.
Don't go crazy when you encounter 'good news': for example, if a certain coin is 'favored by major institutions', first check 'is it a real purchase or just an announcement'. Many good news pieces are 'used to scam investors'.
7. Only those who are always 'learning' can earn for a lifetime.
Changes in the coin market happen faster than flipping a book: today it's DeFi, tomorrow it's AI, the day after it's RWA... Those who don't learn will be eliminated quickly.
Don't be obsessed with 'technical indicators', focus more on 'new trends'.
I spend 200 hours every year learning new things: reading white papers, studying industry reports, tracking the progress of leading projects. For example, in 2023, I researched 'RWA (real-world assets on-chain)', and preemptively invested in related tokens, which accounted for 40% of my annual profits—opportunities in the coin market are always left for those who 'know the trade'.
Conclusion: The core of making money in the coin market is 'living long'.
From losing 60% to earning steadily, my biggest realization is: the coin market is not a 'casino', but a 'battlefield for cognitive monetization'. Understanding coins, controlling positions, stopping losses, not being greedy, and continuous learning… these 7 iron rules seem simple, but they can help you survive in the coin market.
