The cryptocurrency market is a place that both creates opportunities for quick wealth and can also wipe out all capital in just a few hours. Many traders have experienced both the feeling of 'hitting the peak' and 'free falling' – and after many years, those who remain have come to one conclusion: survival is more important than winning. Below are 3 survival rules distilled from real money and valuable lessons:

1. Leverage is a Double-Edged Sword: Never Consider It as Wings

Leveraged trading helps amplify profits, but it can also cause accounts to evaporate in an instant. Many investors have made hundreds of thousands in just one day, only to lose everything within hours when the market reversed.

The safety principle is: leverage should not exceed 2x, and the weight of each coin in the portfolio should not exceed 4% of total capital. No matter how clear the trend is, capital preservation must always come first. In a volatile market like crypto, discipline is the only barrier against greed.

2. Don't Look for 'Long-Term Tickets' in Altcoins

Altcoins can bring huge profits in a short time, but most only exist cyclically. Many projects that once 'went to the moon' have vanished without a trace, leaving investors with worthless 'digital papers'.

A reasonable strategy is: 80% of the portfolio should be allocated to Bitcoin and Ethereum, two assets with high liquidity and solid foundations. The remaining 20% can be used to experiment with altcoins, seen as learning costs or short-term opportunities. Most importantly – never entertain the illusion of 'x100' or 'hold until it returns to its golden age'.

3. Cutting Losses is the Final Boundary to Preserve Capital

There is no perfect trading system, but one unchanging principle is: set a hard stop-loss, a maximum of 7% for each trade. Even if the market seems to be about to recover, if the price hits the stop-loss threshold, leave the position immediately.

Before opening a position, ask yourself: If I lose all this money, can I pay rent, living expenses, or maintain capital for the next trade? If the answer is 'no', it means the risk has exceeded the safe limit.

Conclusion

The world of cryptocurrency is not short of opportunities, but the ones who last the longest are not the best traders, but those who know how to manage risks, maintain discipline, and survive each cycle. Amidst the turbulent waves of the market, preserving capital – is the greatest victory.