7 Iron Rules for Survival in the Cryptocurrency World

In the cryptocurrency market, those who seem to make substantial profits appear to have caught the wave, selected the right assets, or are simply lucky. However, upon deeper investigation, I realized that the group of people who can achieve sustained and stable profits all have a set of "golden rules" guiding their operations. It's not about blindly charging ahead, nor about gambling desperately; rather, it relies on strong self-discipline, a well-developed system, and stable mindset management.

First Rule: Controlling capital allocation is more critical than anything else. You might think you lost due to the market situation, but in reality, you lost due to your position. Being heavily invested in a counter-trend movement, no matter how good your method is, will be futile.

Second Rule: Do not operate based on emotions. Placing an order is not an emotional outburst, not because "it is too weak, I want to short it", nor because "I feel it is going to rise". Any trade lacking logic and systematic support is just throwing money away.

Third Rule: Do not procrastinate on stop-losses. Many people fail by saying "let's observe a little longer", leading to irreversible consequences. A mature trader does not avoid making mistakes; instead, they know how to admit their mistakes immediately.

Fourth Rule: Trade familiar assets and do not engage with cryptocurrencies you do not understand. If you can't see through it, don't touch it; don't follow what others recommend; avoid chasing after assets that have risen too steeply.

Fifth Rule: Establish a clear trading system and adhere to it strictly. This includes entry logic, profit-taking and stop-loss rules, and position adjustment standards. Execution ability is more critical than the strategy itself.

Sixth Rule: Acknowledge that you are an ordinary person; do not fantasize about getting rich quickly. Truly exceptional individuals do not double their profits daily but steadily outperform 90% of people. This is not about who makes money faster, but about who survives longer.

Seventh Rule: Trading is not everything in life; allow yourself emotional buffering. Do not place all your emotions on gains and losses; otherwise, you can easily transition from "losing money" to "losing control".

The final and most essential rule: To make big money, first learn not to lose money. This is a counter-intuitive market; if you want to take money from others, you must be calm, rational, and patient enough.