Five Iron Rules: The Survival Principles I Learned After Losing Big in the Crypto World

To be honest, these five iron rules are not something I came up with out of thin air, but rather lessons learned through repeated liquidations and recoveries, bought with real money. Many people ask me: How can I make money in the crypto world? I just want to say, if you can truly follow these five points below, turning one hundred thousand into five million is not a dream.

First: Stop losses and take profits decisively like a machine

I once stubbornly held onto a position, going from a profit of twenty thousand to a loss of thirty thousand. At that moment, I completely understood: trading is not marriage; you can't get emotionally attached to your position. If the direction is wrong, cut it immediately, and when making money, take the profit in time; don't wait for the market to teach you a lesson.

Second: Don't fantasize about catching the top and bottom

I used to chase after "buying at the lowest point and selling at the highest point." The result was either getting trapped by chasing the rise or buying the dip halfway up the mountain. Later, I realized we don’t need to be gods; just enter in the lower range and exit in the higher range, capturing the main trend is enough.

Third: Volume and price must mutually verify

One of the most memorable times was when I saw a certain coin break a new high. I was so excited that I went all in, and ended up losing everything in two days. Later, I reviewed and found that the rise had almost no volume support; it was completely a trap by the main force to lure in buyers. Remember: volume-less rises are often traps; missing out is better than getting trapped.

Fourth: React quickly when news comes

In the crypto world, information is money. I remember once a sector was stimulated by good news, and without hesitation, I jumped in first, doubling my investment in half a day. If you react a moment too late, you often can only take over others' positions. If you can't get the leader, grab the second tier, and you can still make a profit.

Fifth: Learning to rest is more important than frequent trading

My worst experience was trading every day, resulting in painful losses just from fees. Later, I understood: the real market only has major upward trends; most other times are just fluctuations and corrections. Those who know how to stand aside and rest can preserve their strength for the next big battle.

These are not motivational quotes, but experiences I’ve distilled from countless failures. The iron rules are simple, but the hard part is whether you can control yourself and listen to these few words at critical moments.