At 3 a.m., the community was in an uproar again.
Some people post screenshots: '2 million capital left with 30,000, can't pay off credit cards'; some go crazy in the group: 'Why do I always buy at the peak and sell at the bottom'; and some directly send voice messages, crying, asking: 'Can anyone tell me how to make money in the crypto world?'
I've seen this scene for 5 years.
From the 94 crash in 2017 to the 519 disaster in 2021, from the 312 circuit breaker to LUNA's zeroing out, I've seen too many people go from being full of confidence to being heavily in debt. The crypto world can indeed create wealth, but it is even better at destruction — those who survive do so not by luck, but by firmly adhering to these iron rules:
1. Capital is life; without capital, you don't even have the qualification to break even.
Last year, a fan messaged me: 'Old Ma, I've mortgaged my house for 5 million to enter the market, and now I'm down 70%. Should I cut my losses?'
I stared at the screen in silence for half an hour.
The cruel truth of the crypto world is: losing 50% of 1 million leaves you with 500,000, but to earn back 100,000 from 500,000 requires doubling — the difficulty of preserving capital is far greater than you imagine; but the probability of bouncing back after losing all your capital is smaller than winning the lottery.
Old Ma's bloody history: in 2018, I gambled with my living expenses on altcoins and lost 80% in three days. When I saw my balance drop to just two digits, even eating instant noodles for a week felt extravagant. Since then, I've set strict rules for myself: only use money that 'losing it won't affect my life' to enter the market.
2. Slow is fast; those who want to get rich overnight often perish on the way.
I've seen too many people: just after making 50,000, they want to make 500,000; after making 500,000, they set their sights on 5 million. What happens? They not only give back their profits but also lose their capital.
Real masters in the crypto world aim for only 15%-30% profit each year. It may seem slow, but those who can achieve this consistently for 5 years have already outperformed 99% of investors. It's like rolling a snowball; the important thing isn't how fast you start, but whether you can keep it rolling.
Market beatings: a friend who traded contracts turned 100,000 into 3 million in three months, flaunting luxury cars every day on social media. As a result, one fluctuation caused his 20x leveraged position to blow up, and he is still doing odd jobs to pay off debts.
3. Positioning is the bottom line; those who are all-in are gambling with their lives.
Remember: there are always opportunities in the market, but once your account blows up, you will never get another chance.
I've seen the most stable old players always maintain a 30-50% position. It seems like they earn less in a bull market, but when a bear market arrives, the cash they hold becomes their ammunition for bottom fishing; while those who are all in can only watch their assets shrink, without even the qualification to average down.
Practical advice: divide your funds into 10 parts, never exceed 3 parts for a single token position, and always keep 3 parts cash on hand — this is not being conservative, but leaving a way out when the market suddenly changes.
4. Don't chase the rise, don't try to catch the bottom, and don't go all in; these three 'nos' can save your life.
When the market surges, the group is full of cries of 'missing the boat'; when it crashes, it is crowded with 'bottom-fishing' warriors. But the truth is:
Those who chase the rise, 90% buy before a pullback.
80% of those who try to bottom out end up buying halfway up the mountain.
Those who are heavily positioned eventually become the fuel for the market.
Ayu's mindset: the more fiercely it rises, the more you must endure; the more brutally it falls, the more you must wait. Real opportunities will never make you feel 'if I don't buy now, it will be too late.'
5. Take your time when buying, but be decisive when selling.
The most common mistake for beginners: placing an order in a second when buying, but hesitating for three days when selling.
The correct approach is the opposite:
Observe for 3 days before buying, confirm the trend before taking action, and you can even build your position slowly in 3-5 times.
Don't be greedy when selling; directly place an order when the target price is reached, and don't regret it even if you miss out.
Remember: it's okay to hesitate during sideways movements, but when the market starts, hesitating for a second could mean losing 20% or even turning a profit into a loss.
6. Don't be obsessed with earning the last copper coin.
Last year, when Ethereum rose to $4,800, I cleared my position at $4,000. Some laughed at me for selling too early and missing out on hundreds of thousands.
But later when ETH dropped to $880, those who laughed at me had lost all their capital.
The crypto world is never short of opportunities to make money, but the real winners are those who can pocket their profits. Just like eating fish, you only need to eat the fattest part in the middle; if you insist on gnawing at the head and the tail, you might get choked by the bones.
7. Stopping losses is not admitting defeat; it's about surviving to fight another day.
This is the most counterintuitive yet most important rule: when it's time to cut losses, be quick, even if it rebounds right after.
I've seen too many people: when down 5%, they want to wait for a rebound; when down 20%, they comfort themselves that it will come back; when down 50%, they just lie flat — in the end, they watch their account balance turn to 0.
Stop-loss formula: if a single token loses 15%, you must stop loss; if the total account loses 20%, stop trading immediately. Remember, this is not a rule, but a lifeline.
8. If you see the right cycle, you've already won half the battle.
Beginners look at minute charts, experts look at weekly charts, and big players look at monthly charts.
Short-term fluctuations are noise; the real trend hides in weekly and monthly charts. For example, after the March 12 incident in 2020, there were three buy signals at the weekly level; just seizing one could yield 3-5 times the return.
Cycle mindset: don't exceed 20% of total capital for short-term trades, use 80% of your position for medium to long-term layouts — use short-term money to test, and long-term positions to profit.
9. What goes up for long must come down, and what goes down for long must come up; this is an iron rule in the crypto world.
When Bitcoin rose to $20,000 in 2017, everyone said it would break $100,000; when it fell to $15,000 in 2022, some said it would go to zero.
But history always repeats: the bull market crashed 90% in 2013, 84% in 2017, and 78% in 2021 — every time when fear reaches its peak, a turning point arrives.
Remember: the market always swings between extreme optimism and extreme pessimism. If you can remain calm when others are greedy and composed when others are panicking, you've won.
10. Holding cash is not scary; missing out is not regrettable.
The crypto world has tokens that soar every day and stories of wealth being made daily. But the truth is: 99% of opportunities are not worth participating in.
Last year, a fan made statistics: he traded 127 times in a year, of which only 19 were profitable, and the profits from these 19 were not enough to cover the losses of the other 108 trades.
Old Ma's insight: there are truly only 5-8 times in a year that are worth taking action. Most of the time, waiting with cash is the best strategy.
11. Patience is more important than IQ.
I know an old player who has survived since 2013; he is not the smartest, but definitely the most patient.
During the pandemic in 2020, he waited with cash for 6 months until Bitcoin dropped to $3,800 before taking action; in the 2021 bull market, he waited another 4 months and only increased his holdings when Ethereum broke $3,000.
While others are busy chasing trends, he's sipping tea; while others are cursing their losses, he's reviewing his trades. The result? His returns are at least 10 times those of those 'diligent traders.'
12. Withdraw upon reaching your target; don't fall in love with the battle.
Before entering, always ask yourself: how much do I want to make this time? Once you reach your goal, you must exit.
My rule is: short-term target 20%-30%, medium-term 50%-100%, long-term over 200%. Each time I reach my target, I immediately liquidate half and set a take-profit for the rest.
When making money, the courage to exit is more important than the determination to enter. Just like hunting, once you have enough game, you should go home; if you insist on staying in the forest, you might encounter wild beasts.
13. Stop-loss is a fundamental skill; profit is a reward from heaven.
Many people think, 'I've studied for so long; the market should allow me to make money' — this is the most dangerous thought.
The essence of the crypto world is a zero-sum game; if someone profits, someone else loses. Stop-loss is a survival skill you must learn, just like wearing a seatbelt when driving; profit depends on market conditions, luck, and timing, and cannot be forced.
Keep a calm mindset: losing is normal, and making a profit is a pleasant surprise. This way, you can actually perform more steadily.
14. Money is earned by waiting, not by trading.
Those who trade frequently, 90% are paying fees to the exchanges.
I have done statistics: people who trade more than 10 times a month have an average fee ratio of 15%; while those who trade 1-2 times a month have fees of less than 1%.
Real big money comes from 'lying down to earn': choose the right target, buy in, and then go to work or sleep. Frequent trading not only doesn't make money but also messes with your mindset.
15. Execution is 100 times more important than strategy.
This last point is the consensus of all veteran players:
Knowing a lot of theories is not as good as doing one thing.
No matter how good the plan is, if you don't execute it, it's just waste paper.
I've seen too many people: clearly set a stop-loss but hesitate to cut losses when it drops; clearly say not to chase the rise, but can't help but rush in when the market surges.
The biggest enemy in the crypto world is not the market, but your own desires and lucky thinking. If you can strictly follow your plan, even if your strategy is simple, you can outperform most people.
Lastly, Old Ma says something from the heart.
These principles are understood by everyone who has survived in the crypto world for 3 years. But why are there still people losing badly?
Because there are countless temptations and fears between knowing and doing.
The crypto world is never about who earns faster, but about who survives longer. It's like a marathon; those who sprint ahead often can't finish the race.
If you can engrave these 15 iron rules into your bones, even if the market is bad, you can smile and wait for the next bull market.
Finally, let me leave you with a saying: there are always opportunities in the crypto world, but you only have one chance at capital. Protect your life, so you can wait for the market wave that belongs to you.
(If you find this useful, please share it with your friends struggling in the crypto world; it might save their life.)
