After ten years of trading cryptocurrencies, the pits I've fallen into could pave a road of blood and tears; the real money lost has completely worn away that bit of 'luck.' Every word I say today carries the pain of cutting losses back then.

Small funds wanting to turn over in the crypto world rely not on luck, but on the conviction they hold onto and the execution that is ingrained in them.

These six iron laws are what I have forged through ten years of youth; behind each one is a story that makes me want to slap myself.

First, quit gambling: Hundred-fold contracts are poison; compound interest is the sustenance.

Ten years ago when I first entered the circle, I was blinded by the myth of 'getting rich overnight.' Seeing someone post screenshots of contract profits claiming '10,000 turned into 100,000 in a week' made me envious, and I secretly put in the 50,000 I had saved for my wedding into the contract market, leveraging 100 times. What happened? Three days later, a spike wiped my account clean. That night I sat in an internet cafe all night, cigarette butts piled up like a small mountain, and I didn't even have the courage to call my girlfriend.

Later I understood: Don't fantasize about shortcuts like 'turning 10,000 into 1 million.' That requires a seven-fold increase, relying on consistently making small targets of doubling your money each cycle, not taking a gamble. Like in 2020, when I started with 100,000, making just 10% a month, I still tripled my investment over a year, much steadier than those chasing contracts. Now I don't even have a contract app on my phone; my longest-held spot position has been for 5 years, with profits far steadier than the rollercoaster contracts.

Second, capital is more precious than life: If a single loss exceeds 10%, stop immediately.

The most fatal weakness of small funds is that they can't withstand losses. Ten years ago, I suffered a huge loss: in 2014, when BTC fell from $8,000 to $3,000, I didn't believe it. At $5,000, I put all my remaining $20,000 in, and when it fell to $3,000, I lost 40%, being directly eliminated from the market and not daring to touch coins for two whole years.

Now I have an unbreakable rule: Calculate the worst-case scenario before opening a position, and never let a single loss exceed 10% of total funds. For instance, if I have 100,000, I invest at most 10,000 each time I buy coins; even if it drops, I only lose 10%, which doesn't hurt too much. Last year, when SOL dropped from $120 to $80, I managed to control my position, and after averaging down, I quickly broke even, while those fully invested are still stuck.

Third, hoard coins in a bear market, cash out in a bull market: Bitcoin is an unsinkable aircraft carrier.

I have endured two bear markets; at my worst, I only had 3,000 left in my account, and I had to be frugal even for meals. But every time the fear and greed index dropped below 20 (extreme fear), I gritted my teeth and pulled out 80% of my funds, buying a little Bitcoin every month, regardless of whether the price was $3,000 or $10,000 at the time.

Don't complain that Bitcoin rises slowly; it's the only 'aircraft carrier' in the crypto world that can keep you up with every bull market. The BTC I bought during the bear market in 2018, even though it fell 50% during the crash on March 12, 2020, increased tenfold by 2021. Those who cursed 'Bitcoin will go to zero' during the bear market were left behind when the bull market came.

Fourth, bullets must hit the target: New tracks must be precise, and don't touch air coins at all.

With the remaining 20% of my funds, I only focus on new tracks with real logic - such as today's DePIN, RWA, AI. For each track, I select 3-5 projects, research them for three months, read white papers, check team backgrounds, and monitor on-chain data, then buy in batches.

Early on, I fell into the pit of air coins: in 2017, I bought a coin called 'Space Chain' that claimed it would 'send satellites to the sky,' but it dropped 99% upon listing, and the team simply ran away. Now when I see those 'group buying' or 'no real-world scenario' MEME coins, I can't get away fast enough - small funds can't withstand turmoil, every penny must be spent wisely.

Fifth, taking profits in a bull market is a true skill: Don't be greedy for the last coin.

During the last bull market, I made a fatal mistake: when ETH rose to $4,000 in 2021, my position had already made 5 times profit, and someone in the group shouted, 'It could break $10,000.' I got carried away and didn't sell. As a result, it later fell to $2,000, and I lost half my profit, which made me so angry that I couldn't sleep well for three days.

Now I have set rules: Sell 1/3 when it triples, sell another 1/3 when it quintuples, and sell everything when it octuples. The profits from selling are immediately converted into Bitcoin or stablecoins, never being greedy. Last year, ARB rose from $1 to $3, and I sold 1/3 according to my rule. Later, when it fell to $1.5, I watched others get stuck while I had cash to buy back at a low price; that's the confidence that comes from taking profits.

Sixth, investment is for a good life: Only the money withdrawn to your card is real profit.

Every cycle, I withdraw a portion of my profits to improve my life - in 2019, I used the money I earned to buy a new computer; in 2021, I took my family to Sanya; last year, I bought my wife the necklace she had been mentioning for a long time. Don't underestimate these 'small joys'; they are both positive feedback for your investments and can prevent you from becoming a 'paper-rich' gambler.

I've seen too many people with floating profits of millions in their accounts, yet they won't spend a penny. In the end, when the market reverses, they have nothing left. Remember: Only the money that is withdrawn from the exchange to your bank account, which can be used to buy groceries, pay medical bills, or buy gifts for family, is real profit.

It took ten years for me to understand: The most precious thing in the crypto world is not short-term profits but the ability to survive in the long run. As long as you are still at the table, there is a chance to recoup your losses and make a comeback. Patience is more important than cleverness, risk management is more important than returns, and living is more important than anything else.

In the dark nights of my early days in the crypto world, I stumbled around and got hurt; now I hold a light in my hand, knowing where the pitfalls are and where the path lies. This light will stay on as long as you are willing to follow - after all, in the crypto world, avoiding detours is the fastest shortcut.