From a loss of $300,000 to a profit of $3.58 million! The top 5 strategies for turning around in the crypto world, this approach is tougher than technology!

In my 8 years in the crypto world, I've encountered more pitfalls than profits. From rushing into the market in 2017 with dreams of wealth, to almost jumping off a building after losing $300,000 in ICOs in 2018, to now being able to stand firm during each bull and bear market transition, it's not luck that got me here—but five ironclad rules forged through repeated liquidations. Today, I'm revealing these hard-earned strategies, and every word is soaked in blood and tears; I suggest saving them for easy access next time.

One, cycle anchoring: stick to the Bitcoin halving cycle and hit the wealth nodes accurately.

The core logic of the crypto world is hidden in Bitcoin's halving; it's a lesson I learned only after losing $200,000. The 18 months before each halving is the golden window for building a base; 12 months after the halving, it's time to gradually take profits.

In 2019, I suffered a huge loss. At that time, there were still 10 months until the 2020 Bitcoin halving, and I was eager to gamble on altcoins. As a result, when the March 12 crash occurred, my account was directly cut in half. Later, I focused on the halving cycle to reallocate: in March 2020, I used 60% of my funds to buy BTC and ETH in batches, and even when the market dropped to $3,800, I didn't sell. After the halving, this portion of my position increased threefold, not only recovering my losses but also making an additional $1 million.

Remember: the rise and fall of small coins depend on Bitcoin's movements, and Bitcoin's movements depend on the Federal Reserve's actions. In 2021, when the Federal Reserve loosened policies, Bitcoin surged to $69,000; in 2022, with interest rate hikes, it fell back to $15,000. Understanding this correlation helps you grasp the 'time zone clock' of the crypto world.

Two, dynamic position balancing: the thirty-thirty-thirty strategy helped me bottom fish Ethereum during the LUNA crash.

On the night of the LUNA crash in 2022, I watched my account's altcoins evaporate by 70%, but because I kept 30% cash, I dared to add to my position when Ethereum dropped to $1,000—this is the lifesaving aspect of the 'thirty-thirty-thirty' strategy: 30% as a long-term base, 30% for trading, and 30% cash on standby.

In my early years, I suffered huge losses by going all-in. In 2018, I put all my money into an ICO project, but the project team ran away, leaving my $300,000 principal with less than $50,000. Now I've set a red line for each cryptocurrency: a single coin position must not exceed 20%, no exceptions, even for coins I am optimistic about. Last year, when SOL dropped from $260 to $10, I only allocated 15% of my position, which not only spared me from serious losses but also allowed me to use cash to lower my cost basis.

Positioning is like ballast on a ship; too full will capsize, too light will drift. Balance is essential to withstand the storms.

Three, signal filtering: three indicators helped me avoid the 50% drop from $60,000.

In May 2021, the day Bitcoin surged to $60,000, I cleared 80% of my position. It wasn't about accurate prediction, but three signals turned red at the same time: RSI exceeded 70 (overbought), MACD showed a death cross on the daily chart, and main capital flowed out for three consecutive days.

In the past, I often argued with signals. In November 2020, when ETH rose to $600, the RSI was already at 80, and I thought 'it can still go up', but it dropped back to $400 before stabilizing, costing me an unnecessary loss of $200,000. Now I've set a strict rule for myself: if any two of three indicators trigger an alert, reduce my position; if all three are lit, clear the position. This strategy helped me avoid numerous crashes of altcoins in 2022.

Signals are like traffic lights; don't rush through a red light—wait for the green light to go. Although it's a bit slower, you won't get hit.

Four, black box response: on the night of the FTX explosion, I relied on a formula to recover 20% of my losses.

In the crypto world, there are more black swans than white ones. On the night of the FTX crash in 2022, the numbers on the trading software fell like a waterfall, and the group was filled with cries of 'it's over' and 'liquidated'. I stared at the screen and recalled my summarized 'market formula': if the drop exceeds 30%, first look at the support level, wait for a rebound of 15% before entering.

That day at 2 AM, ETH dropped from $1,800 to $1,200 (a drop of 33%), just hitting the daily support level. At 4 AM, it suddenly rebounded to $1,380 (a rise of 15%), and I immediately used 30% of my cash to top up my ETH position. By dawn, ETH returned to $1,500, and I not only didn't lose money but made 20%.

Later, in my review, I realized that the essence of this formula is 'don't catch falling knives'—during a crash, don't rush to bottom fish; wait for the market to catch its breath and confirm the rebound momentum before acting, as the success rate will be much higher.

Five, cognitive iteration: from losing $300,000 in ICOs to only investing in coins with applications, it took me three years.

2018 was my darkest year. At that time, ICOs were booming, and I saw others doubling their investments by buying white papers. In a moment of impulse, I invested all $300,000 into five 'hundredfold' projects. As a result, when regulation hit at the end of the year, these coins either went to zero or dropped by 99%, leaving me with just over $20,000 in my account.

That night I sat on the balcony all night, realizing one thing: the opportunities for quick money in the crypto world always have a scythe behind them. Starting the next day, I deleted all groups discussing air coins and focused every day on studying the white papers of mainstream coins, looking at their technological implementation, user numbers, and ecosystem development. In 2019, I used all my remaining money to buy ETH—at that time, it had just experienced the ICO winter, priced at less than $200, but decentralized applications were already taking shape.

Now I have a habit: studying a new project's white paper every week, reviewing my trading logs every month, and updating my investment framework once a year. Last year, during the DeFi explosion, I made five times my investment by researching projects in advance, particularly in UNI and AAVE. The market is always changing; clinging to experiences from 2017 is like using an old map to find a new road.

Lastly, let me share a heartfelt piece of advice: after every profit, I always transfer out my principal and only use the profits to snowball. During that bull market in 2021, I made $5 million, first transferring out $3 million to buy a house, while the remaining $2 million continued to be invested. Later, when the bear market came, even if the profits halved, my principal was still safely lying in the bank.

Opportunities in the crypto world are always there, but the premise is that you have to stay alive. These five tips might not make you rich overnight, but they can help you stand on the shore during every wave—rather than being washed up on the beach.