Brothers, I still get chills thinking about that red alarm bell ringing five years ago at midnight. The liquidation alert from the exchange sounded like a death knell, and in three hours, 6 million in assets evaporated to leave only a string of negatives. I stared at the screen, feeling like I was nailed to a cross—one second I was calculating what car to buy, and the next second I couldn't even pay the rent for my rental apartment.
That night, I locked myself in the bathroom, and it took half an hour of cold water to wake me up. Later, I begged everywhere for money, gathered 200,000 in capital, and re-entered the market with the mindset of "if I die once more, I will completely withdraw." For 90 days, I only slept 4 hours a day, printed all the liquidation records and plastered them on the walls, and cried while reviewing the K-line charts. I managed to develop a method with a 90% win rate, turning 200,000 into 20 million.
Now I understand: the crypto world is not a casino; it’s a battlefield—casinos rely on luck, while battlefields rely on tactics. Today, I’m sharing these 8 iron rules that I’ve earned through life and death; each one comes with bloody lessons. If you understand them, you can at least survive an additional 5 years in this battlefield.
First, when the market drops sharply, and your coin only slightly declines—this is a "life-saving charm" from the whales.
During the most intense wave of the bear market in 2022, when BTC dropped 15% in one day, my ETH only dropped 3%, and the trading volume shrank by half. At that time, everyone in the group was shouting "run, ETH is next," but I focused on the order book—there were very few sell orders, and the whales were quietly absorbing. I held for three days, and not only did ETH not drop, but it also rebounded by 10%, while those brothers who followed suit and cut losses ended up missing out.
This is the most straightforward "signal" in the crypto world: when the market crashes, coins that resist the decline either have whale support or hard logic (for example, ETH had merger expectations at that time). You don’t need to panic; just hold on and wait for the rebound. Whales don’t spend effort to support the price for altruistic reasons.
Second, beginners should not complicate things; the 5-day line and 20-day line are your "navigators."
When I first experienced liquidation, I researched MACD and RSI every day, but the more I looked, the more confused I became. Later, an experienced trader taught me: for short-term trades, focus on the 5-day line; if the price is above it, hold; if it drops below, sell. For medium-term, look at the 20-day line; if it breaks, run—don’t hesitate.
In 2023, while playing SOL, I held the 5-day line for 15 days and made a 40% profit; later, when it broke the 5-day line, I decisively liquidated and avoided a subsequent 20% drop. The most common mistake beginners make is "looking for better indicators"; in fact, the simplest is the most effective—the key is not how great the indicators are, but whether you can strictly execute them.
Third, in a major upward trend, "no movement" is more terrifying than "decline."
During the AI concept wave in 2024, FET rose from $1 to $2 without volume (trading volume was about the same as usual), so I decisively increased my position. Later, when it rose with volume to $3, I continued to hold; until one day it suddenly fell with volume by 8% and broke the 20-day line, at which point I immediately liquidated and netted a profit of 1.5 million.
There are only three rules for major upward trends:
No volume increase = the whales haven’t sold out, so you can hold on.
Declining volume but not breaking the trend (for example, not breaking the 5-day line) = just a washout; don’t panic.
Volume drop + breaking trend = whales are running away, so run quickly.
The key is: if there’s no movement three days after buying, you must sell. I’ve learned this the hard way—after buying a coin that was stagnant for 5 days, thinking it would rise, only to suddenly drop 15%. Later, I found out it was the whales "testing patience", waiting for retail investors to sell.
Fourth, a drop of 50%+ from a high and dropping for 8 days—this is a "rebound signal."
Last year, there was a meme coin that dropped from $10 to $5 (a 50% drop) and continued to fall for 8 days, with everyone in the group cursing it to "zero." I remembered this iron rule and built my position in three batches: on the first day, I bought $10,000, on the second day when it dropped another 5%, I bought $20,000, and on the third day, I stopped if it didn’t drop. As a result, on the 10th day, it rebounded by 30%, and I made a profit of $9,000.
The logic behind this is the "oversold rebound": after 8 days of decline, retail investors have mostly sold off, and the whales can pull it back with a little effort. But remember: such coins should only be played short-term; if they rebound 10%-20%, get out—don’t fantasize about returning to highs—getting any money from hell is already a win.
Fifth, leading coins are "fighter jets"; altcoins are "paper airplanes."
During the bull market in 2021, I chose a lesser-known Polkadot coin over DOT (the leading one) because it was "cheap." As a result, DOT tripled, while the altcoin dropped 70%. I later understood: leading coins are at the forefront when they rise and have funding support when they fall, while altcoins can only follow trends and will drop harder.
When buying leading coins, remember: don’t complain about the price. BTC rising from $10,000 to $60,000; how many people missed out because they thought it was "too expensive"? Don’t buy altcoins just because they’ve dropped significantly—leading coins can rebound after a 50% drop, while altcoins could drop to zero. The core of trading leading coins is "getting in the trend," even if buying at a high price; as long as the trend hasn’t broken, you can still sell at a higher price.
Sixth, the trend is more important than the price level—don’t be a "garbage picker."
In 2023, I made a mistake by bottom-fishing a coin that dropped from $20 to $2, thinking, "It’s dropped 90%, it must go up now." As a result, it continued to drop to $0.5, trapping me for half a year. Later, I realized: in a downtrend, "cheap" is a trap; if the trend hasn’t reversed, don’t touch it no matter how cheap it is.
The correct approach is: only buy coins that are "currently rising"—even if they rise from $10 to $20, as long as the trend is still there (for example, the 20-day line is upward), there’s still opportunity; those that keep dropping, no matter how much they fall, don’t touch them—the market won’t rise just because "you think it’s cheap."
Seventh, a single windfall does not count as a win; ongoing profit is the real skill.
Before liquidation, I made 3 million on a meme coin by luck and thought I was the "chosen one," but ended up losing it all later. Now, I ask myself every day at the market close: Did I make money today because my strategy was right, or was it just luck?
Reviewing trades involves three things:
Profitable trades: Did you buy according to plan? Did you execute your take-profit?
Losing trades: Was it because you didn’t set a stop-loss, or did you misread the trend?
Trades you didn’t make: Did you miss them because of hesitation? Why did you hesitate?
Last year, I cured my habit of "greed and not taking profits" through reviewing trades, and my profits stabilized significantly—earning in the crypto world isn't difficult; the hard part is sticking to the rules every time.
Eighth, staying in cash is "invisible profit"—if you can’t stay in cash, you’ll eventually face liquidation.
During the bear market in 2022, I stayed in cash for 3 months, watching others buy the dip and lose money every day, while I didn't lose a cent. Later, when BTC dropped to 16,000, I finally acted and made back all my previous losses in one go. Staying in cash isn't "not making money"; it's avoiding the pitfall of "certain losses."
Now I have an iron rule: if I’m not sure, I will not place a trade. When I can’t understand the order book, the news is chaotic, and emotions are high, I just close the computer and go for a run. Trading is not about who places more orders but who has a higher accuracy rate—ten random trades are not as good as one precise trade.
Brothers, from 6 million in liquidation to 20 million, my greatest gain wasn’t the number in my account but understanding that "surviving is more important than anything else." The crypto world is like a tide washing away the sand; every day someone gets swept away. Those who remain at the table are not the ones who gamble the most bravely but the ones who understand "when to bet and when to stop."
I write these 8 iron rules in the notes of my trading software and review them every day at market opening. Now I’m giving them to you—not to make you rich, but to help you survive a few more rounds in this battlefield until you find your own market.
Remember: the crypto world is not short of opportunities; what it lacks is "when the opportunity comes, do you still have capital?"
If you also have tens of thousands of dollars in capital and want to try your hand in the cryptocurrency world but are afraid of pitfalls; if you've heard of "dollar-cost averaging mainstream coins" and "collecting airdrops" but don’t know how to operate specifically; if you want to understand "how to choose potential coins" and "when a bull market comes, should you increase or decrease your position"—then consider following me. Tomorrow, I will break down the dollar-cost averaging plan, the three essential data dimensions to look at when selecting coins, and even the basic script logic for collecting airdrops, teaching you step-by-step how to avoid the pitfall of "blind gambling" and find a survival strategy in the crypto world that suits you.
The money in the crypto world is never made by "gambling"; it's calculated. Follow @币来财MAX , and tomorrow we’ll talk about how to ensure every bit of your capital is on the right path.
