When the ashtray was filled with the 17th cigarette butt, the red warning on the screen was still flashing — it was a spring night in 2020, when mainstream crypto assets plummeted 40% in a single day, and my account went from 9.6 million to zero in an instant, with eight years of accumulation shattered into bubbles.
As a veteran who has immersed in the crypto market for eight years, I once thought I had grasped the doorknob to financial freedom. During the peak of the bull market in 2017, with assets approaching 10 million, I quit my job, upgraded to a spacious apartment, and even planned for an early retirement. However, the double gamble of high leverage and 'faith-based holding' ultimately could not escape the blow of a black swan.
During the two weeks of being out of contact, I hid in a rental house eating instant noodles, and the credit card overdraft limit was just enough to pay the rent. It was at that moment that I suddenly realized: in the cryptocurrency market, 'staying alive' is always more important than 'making quick money.' The pitfalls I experienced and the tears I shed over the past eight years have ultimately crystallized into five ironclad survival rules embedded in my bones, which I now share with every friend who is preparing to enter the market or is still struggling:
One, risk isolation iron rule: always use 'spare money' to gamble.
The volatility of the cryptocurrency market is more than 10 times that of the stock market, and no asset can guarantee only gains without losses. My bottom line is: only 10% of liquid assets can be invested, and the remaining 90% must be allocated to real estate, stable bonds, savings, and other 'safety nets'. This money must satisfy the condition of 'zero return does not affect life'—the children's tuition, mortgage, and emergency funds must never be touched. Treating investment as a 'game you can afford to lose' is the only way to remain rational when the market is crazy.
Two, emotional contrarian indicators: stay away from the trap of group consensus.
The 'reverse survival rules' I summarize have been proven effective:
When neighborhood security guards and market aunties actively ask 'which cryptocurrency can make money', immediately reduce positions to below 30% (signal of an overheated market);
When intermediary platforms are laying off employees on a large scale, negative industry news piles up, and people around you change their attitude towards 'coins', start to invest in batches (characteristics of a bottom region);
When everyone on social media is shouting bullish and KOLs are collectively recommending coins, decisively clear out short-term positions. The truth is always in the hands of a few; operating against the crowd's emotions can help avoid the pitfalls of chasing highs and selling lows.
Three, asset security first: offline storage is the last line of defense.
After stepping into the risks of centralized platforms and private key leaks, I completely understood: asset control is more important than returns. Even if it costs just a few hundred dollars, a hardware wallet must be allocated—storing large assets offline, leaving only small amounts for daily trading. I still remember the panic when a platform suddenly couldn't withdraw funds; now, although offline storage is troublesome, it can bring a lifetime of peace of mind, making this investment highly cost-effective.
Four, project selection criteria: refuse 'stories', only recognize hard data.
The cryptocurrency market is never short of projects that make false promises: not discussing technology but only visions, open-source code, and fake lock-up data are everywhere. My selection criteria are only three:
The code is open source and has a continuous update record;
Real capital inflow (not fake volume data);
Application scenarios are implemented, rather than merely hyping concepts. Projects without hard data support, no matter how enticing the story, are directly blacklisted; this is the core logic to avoid air coins.
Five, stop-loss and take-profit discipline: embedded in operational instinct.
Losses and profits are both tests of human nature; the iron rules I set have never been broken:
If there is a single-day loss of 15%, immediately cut losses and exit, never harboring the luck of a 'rebound to break even';
If profits exceed 50%, take profits in batches (30% withdrawal, 30% reinvest in stable assets, 40% remain in position);
Never add to losing positions, do not turn small losses into big losses. The market is never wrong; the wrong is knowing you are making mistakes but unwilling to cut losses.
Now my asset allocation has already returned to stability:
70% allocated to mainstream cryptocurrency assets (strongest consensus, relatively controllable volatility, betting on the long-term development of the industry);
20% invested in government bond reverse repos and high-rated bond funds (hedging against market downturn risks);
10% kept in offline wallets (testing one's discipline, avoiding impulsive trading).
No longer chasing trends, no all-in gambling, no fantasizing about becoming rich overnight; let 'quick money' go to speculators and keep 'guaranteed returns' for myself. Eight years of ups and downs have taught me: cryptocurrency investment is not about luck, but about cognition, discipline, and trends of the times; only by staying alive can one wait for the day when trends materialize.
I am A Qiang, focused on the cryptocurrency circle for many years, sharing useful and diverse professional knowledge. If there is fate, who will help you if not money? Follow A Qiang, and let me unlock those matters in the circle, clearing the clouds of the cryptocurrency market. I hope our encounter can be filled with kindness and harvest!
