In the deep autumn of 2018, I squatted in front of the ATM counting my balance, 30,278 yuan. Behind me came a text from the landlord urging rent, and lying in my phone was a bill for my mother's hospital fees — this was all I had left after losing 200,000 in capital, and it was the harshest lesson the cryptocurrency world taught me.
Ten years later today, I have over 50 million in net assets in my account, yet I often find myself dazed while playing with my child with building blocks: the fluctuations of those candlestick charts ultimately do not compare to the solid sound of blocks hitting the ground.
These 11 survival principles, each one is soaked in blood and tears. Now if I break them down and explain, understanding just one could save you 100,000.
One, staying still during sideways markets is winning — learn to be a 'wooden person'.
During that time in 2018, BTC was sideways at 6000 dollars for 7 days, and I thought 'it should break out', so I put in 150,000. As a result, on the 8th day, a large bearish candle smashed it down to 4000 dollars, and my account was directly halved.
I later understood: sideways movement is the market 'gathering strength'; guessing price movements during this time is no different from gambling. Now I have set a strict rule: if it is sideways for more than 5 days, I won’t touch it at all. Even if the group screams 'it must rise' non-stop, I just pretend I didn’t see it.
Last year, there was a time when ETH was sideways for 12 days, and people in the group kept posting screenshots of 'early layouts'. I stubbornly stayed in cash. When it broke out on the 13th day, those who 'early laid out' had already been worn down and cut losses, while I managed to catch that 20% increase.
Two, exit popular coins within three days — don’t be a 'bag holder'.
In 2021, a certain 'metaverse coin' exploded in popularity, and the group was flooded with 'hundred times potential'. By the time I chased in, it had already tripled. I made 50,000 on the first day and was reluctant to sell; the second day it dropped 10%, I wanted to wait for a rebound; on the third day, it directly halved — 80% of my position was gone.
Now, I have only one rule for popular coins: when the group starts shouting 'get on board', I reduce my position by 30%; when someone begins to shout 'scam', I clear my position outright. Popular coins are like trendy snacks at a night market — you wait in line for two hours, eat two bites and get sick of it, don’t expect it to serve as a staple food.
Three, be bold when the trend is strong — don’t be a 'deserter'.
In 2020, ETH gapped up 100 dollars; the group was full of 'temptation' voices. I looked at the 4-hour chart’s trading volume — it was three times larger than usual and steadily above the 20-day moving average, gritting my teeth and didn’t sell.
Later it rose all the way to 2800 dollars, and I made 800,000 on this trade. Strong trend + increased volume = main rising wave; getting off at this time is like jumping off a high-speed train as it just starts, it’s incredibly foolish. Now as long as the moving average doesn’t turn, and the volume doesn’t shrink, I can hold on — even if it dips 10% midway, I won’t act.
Four, take profits on large bullish candles first — don’t be greedy.
When BTC surged to 48,000 dollars in 2021, a giant bullish candle shot up, and the trading volume was five times that of usual. The group shouted 'breaking 50,000 is just around the corner', but I focused on the order book: buying volume was decreasing while selling volume was secretly increasing.
Decisively reduce the position by half, and the next day BTC indeed pulled back to 42,000. A large bullish candle appeared at a high position, indicating a high probability that the main force was 'raising prices to sell off'; at this point, taking half of the profits is more reliable than anything else.
Five, moving averages are traffic lights — don't go against the trend.
I now only look at the 20-day moving average: if the price bounces back on the moving average, I dare to buy; if it rebounds below the moving average, I sell decisively. This line is like a guardrail on the road — disregarding the rules will inevitably lead to accidents.
In the bear market of 2022, there was a time when SOL rebounded above the 20-day moving average; I thought 'trend reversal' and rushed in, but it didn’t even touch the moving average before it fell — this is a classic case of 'false breakout', do not trust a market that even the moving average does not recognize.
Six, the three no-operation rules — doing less is winning.
'Don't sell on spikes, don't buy on dips, don't act during sideways markets' — I have these three phrases posted on my computer. I used to make 10 trades a day, and the fees were more than my profits; now I make 1 trade every three days and earn more steadily.
Remember: frequent trading is not hard work, it’s working for the exchange. Real opportunities won’t make you flustered in front of the screen.
Seven, always diversify — don’t put all your eggs in one basket.
Even if I am 100% optimistic about a coin, I only invest 10% of my position. In 2019, I supported a project that I thought would 'succeed', investing 500,000 heavily, but the project team ran away, leaving me nearly unable to recover.
Now the account is always divided into 10 parts, and no single coin should exceed 20%. Even if one coin loses, there are still 9 parts that can make money — there are plenty of opportunities in the cryptocurrency world, what’s lacking is the capital to come back after a loss.
Eight, observe market reactions to good and bad news — don’t be led by news.
In 2023, when the Federal Reserve cut interest rates, the news was all 'great news', yet BTC fell by 5%. This is a classic case of 'good news running out is bad news' — the market votes with its feet, more reliable than any news.
Conversely, in 2022 when LUNA collapsed, the whole network shouted 'cryptocurrency is over', but ETH did not hit a new low under negative news, which is 'bad news not falling = opportunity'. Always pay attention to the flow of funds, don't be scared by headlines.
Nine, using precise indicators is better than using many — greed makes you choke.
I now only use three indicators:
MACD looks at trends (golden cross and dead cross to discern direction).
Bollinger Bands gauge sentiment (when the bandwidth narrows, a trend change is coming).
Trading volume distinguishes truth from falsehood (breakouts without volume are all scams).
Having too many indicators creates confusion, just like adding dozens of seasonings when cooking, you end up not tasting anything.
Ten, every trade must be planned — write it down before you act.
What to buy, how much to buy, stop-loss points, and take-profit lines must be written down. In 2017, I bought coins based on feelings, made money without knowing why, and lost money without knowing why; now every plan is clearly written, even if I lose, I know where the problem lies.
A trading plan is a bridle that can hold back your impulsive wild horse. If you can't think clearly, don’t act; the market doesn’t lack these few minutes.
Eleven, you must set stop-loss and take-profit — install 'fuses' in your account.
My current iron rule: cut positions immediately if it drops over 3%, and sell half if it rises to expectations. In 2018, I didn’t set stop-loss and lost 120,000 on one trade; in 2021, I didn’t set take-profit, and ETH dropped from 2800 to 1800, wiping out all profits.
Remember: without stop-loss, bankruptcy is inevitable; without take-profit, profits are just paper wealth. These two lines are your lifelines.
Now, I spend every day having breakfast with my child, going for walks in the park in the afternoon, and spending an hour reviewing in the evening. I don’t stay up late watching the market, don’t chase hot coins, and I can withdraw 100,000 for living expenses each month, while my account is slowly increasing.
After ten years in the cryptocurrency world, my deepest realization is: making money relies not on luck, but on 'rules managing greed, rhythm controlling risk'.
If you are still losing now, don’t blame the market, first check if you have followed these 11 rules. The cryptocurrency world has never been a 'game for smart people', but a 'game for those who can manage themselves'.
Just follow this, don’t say 50 million, just achieve stable profits, and you've already outperformed 90% of people.
Finally, I want to say the most brutal truth of the cryptocurrency world is not 'making money is hard', but 'keeping money is even harder'. Just like the author's journey from 30,000 to 50 million over ten years, it relied not on precise predictions of the market, but on ingraining rules like 'not acting during sideways markets, quickly exiting hot coins, and diversifying for survival' into daily routine — these seemingly 'conservative' actions have precisely avoided 90% of the deep pits fallen into by retail investors.
Among the 11 principles, the most fundamental survival logic is: don’t go against the trend (moving averages are traffic lights), don’t be led by emotions (the three no-operation rules), and don’t put all your eggs in one basket (always diversify). Too many people keep cycling through 'chasing hot trends, guessing price movements, and betting heavily', yet forget that money in the cryptocurrency world is never earned by 'how smart you are', but by 'making fewer mistakes' over time.
If you are still troubled by 'buying always leads to drops, selling always leads to rises', if you are always picking up hot coins or messing around during sideways periods, if you want to know how to properly interpret moving averages and where to set stop-loss and take-profit for stability — perhaps consider following.@趋势猎手老金 Next, I will break down the practical details of the 11 principles, from the standards for judging sideways periods, to the timing for exiting popular coins, and the specific ratios for diversification, to help you avoid those winding paths paved with real money.
Opportunities in the cryptocurrency world are always there, but you have to be alive to seize them. Follow me, and let's learn together how to manage greed with rules and control risks with rhythm. After all, those who can survive long in the cryptocurrency world have long exchanged 'smart' for 'awareness'.