Entering the cryptocurrency world, I started with 50,000 and gradually increased to 302,000; in the third year I broke 590,000, and in the fourth year it exploded: 3.78 million in August and over 7 million in November.
When my account reached over 4 million, I quit my stable job and even borrowed money to leverage trading. A financial crisis shattered my illusions, profits were all lost, and I was left in debt, reluctantly selling my house to repay. My family was on the brink of collapse.
During my low point, I realized: previous profits were mostly due to luck. In the following three years, I reviewed and learned day and night, ultimately achieving financial freedom through practical logic.
Now I share 6 core practical logics to avoid 80% of pitfalls:
1. Don’t be a “cryptocurrency collector,” 3 core coins are enough.
BTC: Capture long-term trends, avoid missing out;
ETH: Moderate volatility, trade for price differences;
1 strong sector-leading coin: like AI or RWA sector leaders, more reliable than randomly buying obscure coins.
No matter how hot the market is, don’t blindly jump in; focus to avoid distractions.
2. When emotions run high, “not trading” is the best strategy.
When 3 types of signals appear, stop immediately and calm down:
The number of liquidations across the network surges;
Three consecutive large bullish candles and trending on exchange hot searches;
Laypeople follow the trend to buy.
Calm down for two hours, or minimize a month’s earnings loss.
3. Position size is the bottom line; don’t take shortcuts with “one-time bets.”
This position size helps avoid multiple crashes:
50% USDT: Emergency funds to manage risks;
30% base position: Hold quality coins long-term, unaffected by short-term fluctuations;
20% short-term position: Quick entries and exits without greed.
Preserve capital to have a chance to turn things around.
4. Lock in profits when you earn, cut losses when you lose; don’t rely on “fantasies” to trade.
Profit-taking and loss-cutting are hard rules:
10% rise: Reduce position by half to lock in profits;
20% rise: Liquidate and shift to lower-risk assets;
5% drop: Cut losses based on logic, re-enter after stabilizing;
10% drop: Close positions and reflect, don’t add positions until a rebound.
Discipline preserves capital; without execution, it’s all talk.
5. Don’t understand the charts? You can grasp basic logic in a week.
3-step basic method, understand the market in a week:
Look at daily candlesticks + MA10/MA30, find support/resistance levels;
Observe volume: Rising volume with no price increase is often a “false breakout”;
Check sector rankings: Don’t chase coins that are just catching up at the end.
Understanding the basics can help you avoid most obvious pitfalls.
6. Building positions is like going to war; attacking in batches helps you survive longer.
Taking 3,000 as an example:
First invest 900 as a base position;
Add 900 when it pulls back to support;
Add 600 when it breaks resistance;
Keep 600 to handle spikes or new opportunities.
In the cryptocurrency world, it’s about rhythm, not speed.
