In the past few years in the cryptocurrency world, I've witnessed too many heartbreaking tragedies: a college student using online loans to leverage 100x, only to have debt collection calls made to their counselor after their position went bust; a food delivery driver mortgaged his only house to cover his position, and ended up nearly selling his electric bike; a mother maxed out three credit cards to cover her bills, having to borrow even for her child's milk powder...
In reality, debt isn't the real threat; what's truly terrifying is trying to fill it with a gambler's mentality—the more desperate you are to recoup your losses, the deeper the hole you'll fall. Let me share with you my experience over the years in helping people pay off their debts. Contracts are inherently a high-risk battlefield. If you can't handle it, it's better to just live a normal life, where you can still find contentment in the daily grind.
Step 1: Cut off the “toxic source of funds” first and don’t let debt snowball
The root cause of debt is often not a loss of money, but a vicious cycle of "taking money from one pocket to pay for another." I met a man who initially lost 50,000 yuan and borrowed online loans to recover his losses. His losses only worsened, and he ended up with a debt of 300,000 yuan. The first step to clearing debt is to cut off the source of borrowing:
Immediately deactivate all lending tools: Freeze Huabei, credit cards, and online loan apps, and reduce your balance to the minimum. Don't believe that "using new debt to pay off old debt will alleviate the problem." High pressure will inevitably lead to distorted financial strategies—you'll overinvest in bets out of fear of defaults, and you'll continue to hold onto orders out of a rush to repay, ultimately spiraling out of control.
Last year, I mentored a single mother who initially used her credit card to cover her balances. I caught her there, and she was forced to close it. She said, "Although I felt a lot of pressure when I closed my online loan accounts, I felt a sense of peace of mind because I no longer had to calculate interest every day." Later, she slowly paid off her debts through steady operations, and she finally realized: if you don't borrow, you won't lose more money.
Step 2: Establish a "safe warehouse" to put on a life jacket for funds
No matter how much capital you have left, even if it is only 2000U, you must split the funds according to this ratio. This is the bottom line for survival:
20% U-margined contracts: Only open 1-3x leverage (never 5x or more), and limit your position size to no more than 30% of this capital. For example, if you have 2000U principal and 400U in contract funds, the maximum single position size is 120U. Even if your position is liquidated, you only lose 120U, leaving no damage to your foundation.
50% spot: Prioritize mainstream coins like BTC and ETH, and avoid altcoins. Even if spot prices fall, there's still a chance they'll recover, but if altcoins plummet, they might actually go to zero. During last year's bear market, a friend invested 50% in BTC. Although it dropped 30%, this year's rebound not only recouped his investment but also earned him 20%.
30% stablecoin investment: put it in a decentralized investment platform (for example, one with an annualized rate of return of 5%-8%). This part of the money is "emergency food" and should not be touched unless absolutely necessary. Even if you earn enough to buy a cup of milk tea every day, it is better than losing it all.
Remember: high leverage is poison when you're in debt. 100x leverage might seem like a quick win, but a 1% fluctuation can wipe out your position, and you simply can't withstand the normal fluctuations of the cryptocurrency market.
Step 3: In and out quickly, using "small steps and steady wins" to reduce debt
Debt repayment isn't about getting rich overnight, but about making a little money every day, accumulating little by little. The "hotspot quick attack strategy" I've developed is suitable for debt-ridden periods:
Only trade 1-3 times a day: Focus on small 5-15 minute market movements and avoid long-term holdings. The cryptocurrency market fluctuates rapidly, so small trades make it easier to capitalize on these swings and avoid the harmful effects of staying up late.
Choose the right coin: Choose mainstream coins with a daily volatility >5% (e.g., BTC, ETH, SOL). Too low a volatility will make you lose money, while too high a volatility will easily lead to pitfalls. Avoid altcoins that suddenly surge by more than 10%, as these are likely a scam.
Stick to stop-loss and take-profit strategies: Set a 1-2% stop-loss when opening a trade (for example, if you're long, immediately cut your losses if the price drops 2%), and a 2-5% take-profit (if the price rises 3%, sell half and keep the other half to see the trend). Don't be greedy and hope for a "bigger rise," and don't be lucky and hope for a "rebound." Mechanical execution is more important than anything else.
Stop trading when your daily profit exceeds 5%. For example, if you have a 2,000U investment and earn 100U per day, shut down your computer. Don't try to "take advantage of my luck and make more." Last year, a mother used this rule to earn 30-50U per day and paid off her 380,000 yuan debt in 6 months.
Fatal Taboos: If You Do These 4 Things, Your Debt Recovery Will Fail
During the debt period, any mistake may make you start all over again. These 4 red lines must not be crossed:
❌ Do not hold onto orders for more than 4 hours: If you lose money on an order, accept it. Holding onto an order for more than 4 hours will cause your mind to break down, often leading to a margin call. I once saw a delivery guy hold onto an order for 3 days, going from a 5% loss to a 50% loss. He almost lost his house.
❌ Trading is prohibited between 22:00 and 2:00: This time period is when the cryptocurrency market fluctuates the most and is most susceptible to manipulation. Furthermore, staying up late to trade will cause your mind to be unclear, and your error rate will double.
❌ Do not operate more than two coins simultaneously: Multi-coin operation will distract you, and you will end up not doing well in any of them. Focusing on one mainstream coin is 10 times more reliable than randomly trading three altcoins.
❌ Avoid opening positions when you're emotionally charged: Avoid opening positions after an argument, staying up late, or losing money. 90% of your decisions during these times are likely to be wrong. You can set a "cooling-off period": when you're feeling down, force yourself to refrain from trading for an hour.
Finally, I want to say: The most fair thing in the cryptocurrency world is "everyone is equal before discipline"
I have seen a single mother pay off 380,000 US dollars in 6 months with 2,000 US dollars. It was not luck that made the difference, but the small profits she made every day. I have also seen rich second-generations use 1 million US dollars as capital and 100 times leverage to chase altcoins, and finally lost 911 to the amount of Meituan and eMule. What they lost was not money, but discipline.
The key to clearing debt isn't about getting rich quick, but rather using mechanical trading to smooth out the debt curve. Earn a little every day, avoid greed and gambling, and your debt will slowly decrease like an hourglass. If you're currently in debt, don't panic. Cut your debt first, build a safe position, and earn money slowly with small trades.
The cryptocurrency world isn't just about being a "gambler." Maintaining discipline, even if you earn just 100 units a day, will help you escape the abyss. Remember: only those who can manage risk are qualified to profit.
Making money in the cryptocurrency world doesn't rely on metaphysics, but on using simple techniques thoroughly and using rules as a foundation. Only in this way can you avoid pitfalls and make more money in the short term. Follow me for more simple and practical operation skills, and let technology become your confidence in making money~
On Black Friday 2020, staring at the meager $3,780 in my account, I smashed my keyboard until it cracked. The ETH margin call notification was still hanging on the screen. It was my third margin call, and my original $200,000 capital was practically gone. Even my wife couldn't help but delete my trading app, leaving me with the words, "If you continue to trade crypto, don't come back to this place."
That night, I sat by the river, feeling the cold wind for four hours, my whole body numb. I had once firmly believed that if I just observed enough candlestick charts and memorized the MACD and RSI, I'd be able to make a fortune. The result? I panicked and took profits at the slightest rise, and sold my stocks at the slightest drop. I was like a clockwork top, being led around by the market.
It wasn't until later that I met Lao Chen at an offline gathering—an old man who wore cloth shoes and didn't speculate on hot topics, but who had quietly built a nine-digit account using the most primitive Excel software. He looked at my operations and said, "You're not speculating in crypto, you're being manipulated by the cryptocurrency world."
It was he who taught me the "343 Position Building Method", which was so old-fashioned, but it saved my life - in two years, I made $60 million from $3,780.
Why is this "rigid" method of building a position effective?
80% of the losses in the cryptocurrency world are due to two words: guessing the top and buying the bottom.
I used to love predicting market trends, but I always ended up buying in halfway up the market and selling before it took off. The most ruthless thing about the 343 method is that it doesn't require you to guess the direction; it just requires you to follow the rules.
Just like stopping at a red light and going at a green light, you don't need to predict the traffic, just follow the lights. This method divides the position into three sections and follows the price rhythm step by step.
The full process of the "343 Position Building Method" (taking 200,000 yuan as an example)
1. [30% Trial Position]: Sell a little first, don’t buy all the stocks, and keep some for the future.
Only choose long-term stable mainstream coins (BTC, ETH, BNB) and avoid altcoins.
First invest 30% of the principal - for example, take 60,000 out of 200,000. If BTC is 30,000 US dollars at the time, buy 2.
This step is not to make money, but to detect market sentiment and see whether the rise is real or the fall is false.
2. [40% Coverage]: Core operation, lowering costs and avoiding chasing rising prices
After buying:
• Going up? Don’t rush to buy. Wait for a pullback to the 10-day moving average before adding 40% to your position.
• Falling? For every 10% drop, add 10% to your position (10% of 200,000 is 20,000), up to a maximum of 80,000.
✅ Example:
• 30,000 to buy BTC: 60,000
• Fall to 27,000: add 20,000
• Fall to 24,300: add another 20,000
• Fall to 21,870: add another 20,000
• Fall to 20,500: add the last 20,000
Ultimately: I bought 5.44 BTC at an average cost of $25,700. I don't need to return to $30,000; I can make money as long as it rises to $26,000!
3. [30% Trend Position]: Wait for the signal to confirm before entering the market to reduce mistakes
When the price of the currency stands above the 7-day moving average for three consecutive days, or the MACD forms a golden cross above the zero axis, you can add the last 30%.
This is to ensure that "you will only increase your investment when the chances of winning are greater", unlike before when you just increase your investment based on your own ideas.
Reaping profits is not based on impulse, but on rules
The profit-taking of this method is also extremely restrained:
• Increase 20% from cost and sell 20%
• Increase by 50%, then sell 30%
• If the price goes up 100%, clear the remaining 50%
Compared to making a huge profit in one go, it is easier to lock in profits by selling in batches.
I used this method to take profits many times when SOL increased 10 times. Although I didn't get the top, I made more money and more steadily than most people.
How did I grow from 3780 to 60 million? It was because of two things:
1. Emotional isolation: knowing that you will be compensated with 20,000 if the stock price drops by 10%, you don’t have to worry about it or bet on the direction, and your mentality will be stable.
2. Limit losses and magnify gains: The worst loss is locked in the first trial position. If the trend is right, the profits of the next two positions will explode.
Last year, a fan used this method and turned his 50,000 yuan investment into 480,000 yuan. He told me, "The hardest part isn't the steps, but resisting being lazy and taking shortcuts."
The last heartfelt words
In the cryptocurrency world, many people believe that getting rich quickly requires secret techniques and genius operations. However, after three failed attempts, I realized that the most effective methods are the ones that seem the dumbest.
The 343 position-building method has helped me go from sleepless nights to a stable mindset; it's helped me escape the brink of bankruptcy and live a life of freedom. Best of all, this method keeps me happy even when my stock price drops, because I know how to recover; and keeps me calm even when it rises, because I have a plan for taking profits.
If you are also experiencing the cycle of "buy when it falls, sell when it rises", if you don't know when to enter the market and how to cover your position safely, if you want to get rid of emotional trading and stop being led by the market -
Follow me. Next, I'll share the practical Excel template for this method, the techniques for dynamically adjusting take-profit orders, and a list of commonly pitfall currencies, to help you avoid years of detours, preserve your capital, and build a better future.
Money in the cryptocurrency world is never made by speculation, but by persistence.
To make $1 million in the cryptocurrency world, you either have to rely on a bull market and hold on, or you have to bet on a lucky coin, or you have to use high leverage to bet on the right direction. But most people lose money, so don’t just rely on the get-rich-quick stories; first determine how much risk you can tolerate.
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How I Used the Pyramid Model to Build a Stable Profitable System in the Cryptocurrency Industry! Only Six Steps are Needed
Without further ado, let’s get straight to the point!
After more than 10 years of cryptocurrency trading, I have established a complete trading pyramid model to help everyone who wants to make continuous and stable profits on the path of a trader, and to establish a complete set of guidelines; the way to take trading performance to the next level is to turn a good trading mentality into a habit.
To achieve trading success, you need to go through six steps. We can call these six steps the six cornerstones of successful trading. They are: choosing a focus, determining a trading style, using the right trading techniques, controlling position sizing, internalizing profitable trading patterns into habits, and self-control.
Step 1 to Successful Trading: Focus
For a trader, focus is one of the most powerful weapons in your arsenal. It determines how you view the market. More importantly, it determines what you ignore. With the vast amount of information generated by any market, you need to ignore most of it. For some traders, their focus might be reading the financial media; for others, it might be weekly meetings with their traders; for still others, it might be examining technical charts; or perhaps you've invested in a short-term trading system and your focus is following its rules.
You will immediately understand that each of these perspectives will lead to a completely different view of the market. Someone reading an article written by a stock commentator or analyst will have a completely different understanding and perspective of the market than someone trading according to a short-term trading system. This will differ in the following aspects:
Timeframes – This can range from minutes to months or years. Markets – Markets include stocks, futures, commodities, and CFDs. Each type of market presents different risks and opportunities. Objectives – Some traders seek long-term returns and dividends, others seek short-term trading profits, and many fall somewhere in between.
Even if you are similar to others in all three aspects, other traders may still have very different ways of profiting from the market. For example, one of my colleagues focuses on profiting from market gaps, while I like to trade when prices rise or fall, and others use candlestick charts or moving averages... The differences are practically endless.
You still need to consider money management, but the trading system itself takes care of risk control. Since your focus is very narrow, the entire trading process will become much simpler.
Step 2 to Successful Trading: Decide on Your Trading Style
The so-called talent is essentially a "trading style" that matches you. There are many different trading methods in the market. Even if you have determined your focus, there will still be many trading methods based on that focus.
For example, your focus might be on hedging a market target price. Based on this focus, you might trade as the market price moves toward your target price after the market opens. However, some traders might adopt a more relaxed trading style, simply placing a limit order at or near their target price, adding a suitable stop-loss, and then going off to play golf.
Another trader might adopt a more aggressive trading style. They might carefully observe price action at the opening, exiting the trade quickly if it doesn't go their way. If it does, they'll quickly move their stop-loss to lock in profits. In both cases, the focus is identical, or very similar, but the trading styles are vastly different. Which trading style is better?
Your trading style will also depend on your personality and psychology. Or in other words: your trading style is a combination of your own talents, personality, core values and beliefs.
Step#3to Successful Trading: Use the Right Trading Actions
The concept of "correct trading" itself is simple and straightforward, but it also has two distinct aspects. Your focus must give you an edge that will produce expected profits over the long term. And you must trade correctly to realize your edge.
The first aspect relates to the nature of being a professional trader, meaning you need to carefully examine your focus to ensure it truly makes money. You are responsible for how you trade, and you need to carefully examine your approach to ensure it earns you money. The second aspect is achieving excellent trades to fulfill the positive expectations of your trading method. Once you are doing this and have the confidence to maintain it, you are ready to move on to the next step...
Step 4 to Successful Trading: Control Your Position Sizing
When you actually start trading, you'll encounter the question of position sizing. The following key points are important.
You've established your focus. You've become an expert in your area of focus and developed a trading style. You've carefully tested the components of your trading process in the markets and know you have an edge. You've demonstrated this edge in live trades. You understand the key concepts of money management (which, in a sense, is also part of your trading style).
Once all of these elements are in place, if you want to make a decent amount of money as a trader, you must increase the size of your trades. As you progress, and if you trade correctly, your account balance will continue to grow, and you can continue to increase the size of your trades.
You need to consider money management. In simpler terms, this means avoiding risking too much on any given trade. I recommend setting a risk factor of 2%-4% on each trade. This means if you have a total trading capital of £10,000, you should only risk £200-400 on each trade. Generally speaking, it's better to risk less than more.
This risk factor may seem low, but you need to be aware that losses can occur at any time and you must be able to cope with them without causing serious damage to your capital.
For example, if your trading method yields a 50% win/50% loss (which is mediocre, as your wins must, on average, outweigh your losses to give you that much-needed edge), then statistically speaking, you're likely to experience 11 or more consecutive losses in every 1,000 trades. Unless you're well-versed in statistics, no one would suspect such a high number of losing streaks. And if you're risking 10% per trade, you're probably going to be wiped out.
Also, keep in mind that if you halve your account, you'll have to double it (achieve a 100% profit) to get back to your starting account. This isn't easy to achieve, so it's best to avoid halving your account in the first place. By risking 2%-4% each time (adjusting your risk based on your overall bankroll), you can minimize the impact of inevitable losses and still capitalize on those 11-game winning streak (statistically possible, but certainly not excessive).
Therefore, trading psychology will once again be introduced into your risk management. If you are the type of person who is willing to take high risks and enjoy the excitement, you must pay special attention to yourself and do not ignore the advice I gave above because of these psychological tendencies.
Money can raise a number of psychological issues, but the reality is that if you want to make your trading a business, you must manage these issues properly. Being an emotional, poor loser in a competitive environment can negatively impact your ability to handle the financial losses you will inevitably experience in the trading process. As you consistently treat trading as a business, profits will naturally follow.
Step#5to Successful Trading: Internalize Profitable Trading Methods into Habits
As humans, most of our behaviors are just habits. Some of us develop profitable habits and become wealthy and successful, while most of us, for various reasons, develop habits that lead to failure and make life a struggle.
For such situations, a lot may need to be done to properly address the human herd mentality: you only need to go to your local pub, football stadium or rock concert to see how much we humans like to be sociable.
Successful people are often those who enjoy working independently and independently. They also possess a highly positive mindset towards success. They view success, wealth, and successful people as worthy goals or inspiring role models.
If you want to profit, you must avoid that behavior and, ideally, adopt the steps outlined in this article. These steps are inherently simple. If you follow them consistently, they will become powerful, success-leading habits (the opposite of the destructive habits most traders develop).
We're all prone to falling into bad habits, and those habits need to be eradicated. This is easier said than done. Take me for example. In November 2012, I decided I was drinking too much, so I decided to quit drinking for a year. I found it easy to do and considered myself a successful self-directed effort. A year without alcohol wasn't a big deal, after all. But I worried that if I started drinking again in November 2013, I'd immediately relapse. However, I was pleasantly surprised to find that I could manage my drinking quite comfortably. I'm not saying bad habits won't relapse, but for me now, I've eliminated old bad habits and am happy to maintain new ones.
Remember, a habit is formed by repeating the same behavior over and over again. Unfortunately, your subconscious mind doesn't know or care whether a habit you're developing is good or bad. When it comes to your trading, you need to identify which bad habits you've developed and find ways to eliminate them. This is still easier said than done. Remember: many of our habits play a positive role in our daily lives, so most of them are extremely useful!
Unfortunately, in many cases, our habits are subtly undermining our own efforts to succeed. When we set out to achieve peak performance in a certain area, we all need to change our less helpful habits in order to succeed.
Step 6 to Successful Trading: Develop Your Self-Control
Finally, I'd like to add one more thing I call the sixth cornerstone: self-control. You cannot be a successful professional trader unless you decide what you want and take action.
Of course, there's more to it than just these things as you actively grow your bankroll and learn to navigate new challenges at each stage. Your unique relationship with money may be a key factor in this process.
The six-step method outlined above can be well applied to all aspects of trading or life if appropriately modified according to actual needs.
6 Trading Rules for Survival in the Cryptocurrency Circle: What I Learned After 5 Liquidations!
Brothers, stop asking "how to make money in the cryptocurrency world" and first understand "how to survive." It took me five margin calls to finally understand: the cryptocurrency world isn't about who makes money fast, but who survives the longest. Master these six survival systems, and even those with average skills can survive the market.
1. Capital Management: The 1% Risk Rule Locks the Bottom Line
The single risk must never exceed 1% of the principal. This is the iron rule for saving life.
Algorithm: With a capital of 100,000 yuan, the maximum loss in a single transaction is 1,000 yuan. The position can be calculated in reverse order (for example, with a 3% stop-loss for a BTC contract and 10x leverage, a position of only 3,333 yuan can be opened at a time).
Split your portfolio into 5 units: 3 for trend trading and 2 for swing trading. Stop trading if you lose all of 1 unit in a trend trade, and stop trading if you suffer two consecutive losses in a swing trade. Last year, a student used this strategy to consistently earn 20,000 yuan a year with a 50,000 yuan investment, with a maximum drawdown of only 8%.
2. Double Stop-Loss Insurance: Double Blockage of Technology and Funds
Technical stop loss: For trend orders, look at the 4-hour MA20, and cut if it falls below it; for swing orders, use 2×ATR (for example, ATR500, stop loss 1000).
Capital stop loss: Cut losses immediately when the loss reaches 1% of the total capital, regardless of technical factors.
A tough trick: Use conditional orders to set stop-loss in advance, set the stop-loss when placing the order, and let the system take control.
3. Position Dynamic Balance: Keep 30% in Cash for Both Bull and Bear Markets
Bull market position = (current price ÷ previous historical high) × 100% (e.g. BTC 50,000 ÷ previous high 69,000 ≈ 72% position).
Bear market position = (previous historical low ÷ current price) × 30% (e.g. BTC 30,000 ÷ previous low 15,000 × 30% = 15% position).
Adjustment signal: If the weekly MACD golden cross rises by 10%, add 10% to the position; if the weekly MACD dead cross falls by 10%, reduce 10% of the position. Use mechanical operations to avoid emotions.
4. Market Filtering: 90% of Markets Should Be Abandoned
Three-cycle resonance before taking action:
Only go long when the weekly MA5 is above MA20, and go short when the weekly MA5 is above MA20, and keep a short position when the market goes sideways.
The trading volume must be magnified by more than 1.5 times, otherwise it is a false market.
Only enter the market at the beginning/middle of the month in a bull market and at the end of the quarter in a bear market, and avoid the 3 days before and after the delivery date.
5. Emotional Management: Mechanical Execution Schedule Instead of Brain
Pipeline transactions and standardize decisions using execution tables:
If the profit reaches 30%, the position will be forced to close at 20%, and if the loss reaches 1%, it will be cut immediately.
A single violation will result in a 24-hour trading suspension, and we rely on rules to combat human weaknesses.
6. Counterintuitive Techniques for Surviving a Bear Market
Position swap: 80% of altcoins are swapped for BTC, with the least drop and the fastest rebound.
Option insurance: For every 20% drop, spend 1% of the principal to buy call options. When the price reaches $16,000 in 2023, you will earn $30,000 on a $5,000 option.
Reduce frequency: Transaction once per month, saving 80% in transaction fees.
Conclusion: The ultimate secret to survival is accepting mediocrity. I rely on the simple method—strict fund management, mechanical execution, and 90% of the time short positions—to achieve steady annual growth. The rule of the cryptocurrency world isn't offense, but defense. If you can survive a bull market and earn 20% compound annually, you're a winner.
Survival Dashboard: Three daily questions - Drawdown exceeding 5%? More than 3 trades per week? Violation of the execution table? Only meet all the requirements to pass.
How many people, driven to despair by market volatility, have relied on this system to stabilize their positions, or even turn things around? Countless—but the key lies in this: dare to follow, dare to act, and do not drag your feet.
To make $1 million in the cryptocurrency world, you either have to rely on a bull market and hold on, or you have to bet on a lucky coin, or you have to use high leverage to bet on the right direction. But most people lose money, so don’t just rely on the get-rich-quick stories; first determine how much risk you can tolerate.
If you are also a fan of cryptocurrency technology, click on the coin homepage.
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