Want to make money in the crypto space for the long term? The 6 iron rules from a 33-year-old with 20 million: don’t chase trends, don’t fully allocate, control emotions, execution wins half the battle.

Eight years ago, I was just an ordinary office worker, squeezing onto the subway and calculating rent, looking at a four-digit balance in my bank account, never imagining that by the age of 33, I could accumulate 20 million in net assets through the crypto space.

This journey is not about relying on luck to bet on trends, but about the six iron rules summed up after countless falls—understanding them can help you avoid five years of detours in the crypto space and dodge 80% of deadly traps.

Rule one: Only invest spare money in the crypto space; don’t touch your living foundation.

In the year I first entered the market, I made a mistake that almost left me homeless. At that time, I had the money for three months' rent, and seeing my colleagues making money trading altcoins, I impulsively went all in.

As a result, in less than a week, the coin price plummeted by 90%, and the landlord came knocking for rent every day; I had to shamelessly borrow money from friends to get by. That night, sitting on the floor of my rental, I finally realized: the crypto space is not a casino; you can’t throw your money for food and rent into it.

Now I divide my funds into three parts: 60% is for family reserves and daily expenses, this part is like a 'stabilizing force'; even when I see news about 'hundredfold coins', I never touch it; 30% is invested in bank wealth management and government bonds for steady returns.

Only 10% is safe to put into the crypto space; even if this part is lost, it won’t affect my family's life. I’ve seen too many people use mortgage and dowry money to invest in coins, panicking and cutting losses when the market drops, ending up with no profits and causing chaos in their lives.

Rule two: Stop-loss is a lifeline; leave when it’s time, no hesitation.

On the day of the crash on March 12, 2020, I sat in front of the computer all night. My friend Wang had a position of 500,000 and kept repeating 'wait a bit longer, it will definitely rebound', waiting from morning till midnight, only to watch his account balance fall to 0.

However, because I set a stop-loss at 15% in advance, although I also lost, I preserved 85% of my principal. Later, when the market warmed up, I recovered my losses in less than a month.

Since then, I set a strict rule for myself: mainstream coins have relatively small fluctuations, with stop-loss set at 10%-15%; altcoins are like 'rollercoasters', with stricter stop-losses at 5%-8% where I need to exit. Moreover, set automatic stop-loss immediately after placing an order, regardless of how the market fluctuates, never manually cancel the order.

Many people think stop-loss means 'acknowledging losses', always hoping 'just hold on a bit longer and it will come back', but forget that stop-loss is not a loss; it’s preserving capital for the next opportunity—don’t let a single mistake completely kick you out of the market.

Rule three: No matter how hot the trend is, don’t chase blindly; opportunities are hidden in the quiet.

A few years ago, when Dogecoin exploded, no one in the office wasn’t talking about it. A colleague jumped in at a high of $0.7 and boasted to me 'I’m about to double my money', only to be stuck for three years, now sighing whenever Dogecoin is mentioned.

I never followed the trend; I only tried a small position of 5% when Dogecoin corrected to the 5-day line and trading volume suddenly increased, and I quickly withdrew after making 20%.

The trends in the crypto space are like a revolving lantern; today it’s DeFi, tomorrow it’s NFT, and the day after it changes to AI concepts, but lively places often hide pitfalls.

I’ve summarized a rule: when the market aunties are all talking about a certain coin, the risk is coming; conversely, when the market is quiet and no one is discussing the trends, that’s when real opportunities appear.

Over the years, I have stuck to the principle of 'investing in undervalued mainstream coins + entering the market with volume'; no matter how others shout about 'hundredfold opportunities', I never blindly chase the trends.

Rule four: Never fully allocate your position; keep cash on hand to respond.

Thinking back to the wave of LUNA going to zero still scares me. At that time, my position in LUNA only accounted for 5%, so even if it went to zero, it wouldn’t have a big impact on my overall account.

But I know a major investor who put 90% of his funds into LUNA, and in just three days, his assets of tens of millions turned into liabilities, ultimately forcing him to exit the crypto space.

After this incident, I became more cautious about position management: a single coin position should never exceed 30%, even if I am optimistic about that coin; always keep 20% cash in the account, so that even when faced with sudden market movements, I have funds for averaging down or stop-loss.

During a bull market, I would put 60% of my money into mainstream coins like Bitcoin and Ethereum for stability, 30% in quality altcoins for profit, and keep 10% as cash; during a bear market, I would adjust it to 40% mainstream coins + 60% cash, allowing me to withstand downturns and buy at the bottom.

Rule five: Be decisive in taking profits; don’t be a 'rollercoaster player'.

I used to suffer big losses due to greed. When ETH rose from $200 to $1000, I kept thinking 'it can go higher' and never took profit. Not long after, the market corrected to $400, and I lost 70% of the profits I had earned before.

After that incident, I set a profit-taking rule for myself: take 30% profit when the coin doubles, take 50% when it triples, and set trailing stop-loss on the remaining position, so even if the market corrects, I can preserve most of my profits.

Many people always think about 'earning the last penny'; the result is often 'a bamboo basket fetching water is a futile effort'. Remember, the profit numbers on the screen are virtual; only the money transferred to your bank account is real. Don’t be a 'rollercoaster player'; when it’s time to take profit, don’t hesitate—secure your gains for peace of mind.

Rule six: Keep your emotions stable; don’t be an 'emotional trader'.

Feeling elated during profits and panicking during losses is a common problem many people face in the crypto space; I am no exception. Once, I made 300,000 from Bitcoin and thought I had 'seen through the market', casually buying several altcoins, only to lose 200,000 in a week. That night, I went over my trading records again and again, only to realize that it was emotional turmoil that led to my reckless operations.

Since then, before every order, I ask myself two questions: Am I acting out of greed or panic? Does this decision align with my trading rules?

If emotions run high, immediately close the trading software, even if it means missing an opportunity; it’s better to make no mistakes. The crypto space is never short of opportunities, what it lacks are people who can rationally handle them. Stabilizing your emotions is more important than understanding K-lines.

Looking back over these eight years, going from being broke to saving 20 million, the key was not how many trends I caught, but learning to 'survive through bull and bear markets'.

These six iron rules seem simple, but very few can truly stick to them. In the crypto space, making money is not about luck; it’s about knowledge and discipline. The next bull market is coming soon; I hope you can become a market winner by following these rules.

If you also want to avoid detours in the crypto space, pay attention to @趋势猎手老金 gold; I only bring along partners with strong execution—after all, no matter how good the rules are, only proper execution can truly help you make money.