On a winter night in Beijing in 2014, I sat wrapped in a quilt on the edge of my bed in my rental apartment, cigarette butts filling an ashtray. The red letters on my computer screen, "Loss of 860,000 Yuan," burned like a branding iron, stinging my eyes. That was all my savings of seven years, plus money chipped in by relatives and friends, all invested in Bitcoin. After a dramatic rise and fall, my dreams of wealth were shattered, and I was burdened with debts I'd never seen before.


Ten years later, when my account balance broke eight figures, I didn't celebrate. I simply called my mother back home. This wasn't luck; it was the price of survival, borne through countless sleepless nights and excruciating pain.
Today, I don't want to discuss any get-rich-quick myths. Instead, I'd like to share with you six survival rules I've cultivated over the past decade. They've saved my life, and perhaps they can help you if you're struggling.

1. Those who follow the trend will survive, those who go against it will perish — Don’t fight the trend

The thing I used to be most proud of was that I always thought I could "buy at the bottom" but later I found out that most of the time I was buying at the "gateway to hell".


In 2017, when BTC plummeted from $20,000, I stared at the candlestick chart and slammed my head on the table, declaring, "This is clearly a pullback! Here comes my chance!" Without telling my wife, I increased my position. I ended up losing 230,000 yuan in a single day, nearly bankrupting my account. That night, I stood in the hallway until dawn, my throat bleeding from smoking.
Later, I set a strict rule for trading: only trade in upward trends, and short selling is also a position.
✅ My iron rule for entry:

  • The price of the coin must be stable above the 30-day moving average for three days, which is the "safety belt" of the trend;

  • To enter the market after a big drop, three conditions must be met at the same time:

    • Volume has shrunk to less than 40% of its 30-day average (no one is selling);

    • Stablecoin net inflows continued to rise, with weekly growth exceeding 15% (funds are quietly entering the market);

    • The contract funding rate turned from positive to negative (market panic was in place).


Eleven days after the LUNA crash, BTC met all three of these conditions. I built a position in three batches, and three months later, it rebounded by over 127%. This isn't "bottom fishing," it's about following the current—water flows to lower places, money flows to hotter places, and sailing with the current is the only way to sail.

2. Stop-loss is about survival, not surrender – don’t let a single loss capsize you.

You can tolerate a single 30% loss, but struggle to accept ten consecutive 3% losses. This isn't a psychological issue; it's a financial structure that can't handle it: a single 30% loss requires a 43% profit to recoup your investment; but ten 3% losses can be recouped with just one 30% profit.


Many people fail not because of judgment but because they refuse to admit their mistakes. In 2019, I invested in ETH, and when it plummeted from $200 to $180, I kept thinking it was "about to rebound," so I held on until it reached $150 before selling. This resulted in a 25% loss, and it took me six months to make it back.
✅ My three stop-loss lines of defense:

  1. Time stop loss: If there is no profit sign after 24 hours of holding the position, exit the market immediately (it means the judgment was wrong);

  2. Space stop loss: If the floating loss exceeds 3% of the principal, forced stop loss will be executed without hesitation (the computer sets the conditional order and it will run automatically without watching the market);

  3. Emotional stop loss: After two consecutive misjudgments, take the initiative to stop trading for three days (to avoid making "loss-making orders" out of anger).


On "Black Thursday" in March 2020, I placed a stop-loss order in advance, automatically closing my position when BTC dropped to $6,000, thus avoiding the subsequent 40% single-day plunge. There was a lot of wailing in the group chat that day, and although I also lost 3%, at least I didn't get kicked out.

3. Understand "volume-price behavior" and see through the main force's mind - the flow of money is hidden in the trading volume

The cryptocurrency world has never lacked believers; what's lacking is those who understand where the money is flowing. Rising prices aren't driven by hype, and falling prices aren't driven by emotions. Behind every candlestick chart is real money moving.


When ETH hit $4,000 in 2021, everyone in the chat group was shouting, "Break $10,000!" However, I noticed that trading volume was getting smaller day by day—the price was rising, but money was fleeing, a sign of "puffiness." I liquidated my position early, avoiding the subsequent nearly 60% pullback.
✅ Main action recognition technology:
Signal to open a position (money is coming in):

  • When the stock breaks out and rises, the trading volume is more than 3 times the 30-day average (big money is buying);

  • Frequent large-value transfers on the chain (whales are adjusting their positions);

  • The net outflow of USDT from the exchange lasted for more than three days (the tokens were transferred from the exchange to the wallet and were about to be locked).


Risk signal (money is running away):

  • The price hits a new high but the trading volume "lags behind" (no one is taking the bid);

  • Lending rates have dropped significantly, and chip concentration has increased (the market makers are quietly selling their stocks).


Trading volume is the "electrocardiogram" of the market. If money comes quickly, the market will be stable; if money runs away quickly, even the most beautiful K-line is just drawn.

4. Opportunities are reserved for those who wait, not for those who buy recklessly. Waiting is not inaction.

A bull market isn't short of gains; what's lacking is the patience to hold onto your coins for multiple increases. I never chase hot spots; I only invest in "pullback + reversal" patterns that I understand. Waiting isn't inaction; it's sharpening the knife while waiting for prey.


✅ Four-factor model to determine the "rebound critical point":

  1. The correction from the historical high is more than 30% (a rebound is possible only after the market has fallen through);

  2. The 120-day moving average is flat (a "turning point" in the long-term trend);

  3. The weekly RSI has fallen back to the 40-50 range (neither overbought nor oversold, sentiment has calmed down);

  4. Perpetual contract open interest hit a 3-month low (neither long nor short wants to play anymore, time for a market reversal).


In 2023, Sol dropped from $120 to $60, right around its 120-day moving average. All four conditions were met. I decisively entered a position, and over the next five months, the stock price increased more than fivefold. This wasn't luck; it was an opportunity waiting to happen. Pulling the trigger would have been a waste of bullets if the prey wasn't within range.

5. Screen high-quality targets and reject "zombie coins" that waste energy - energy is more valuable than opportunity

A coin with no volatility, no trading volume, and no popularity is like stagnant water; it will never produce any fish. In 2018, I was tracking over 20 cryptocurrencies, so busy every day I barely had time to eat, yet my returns were worse than those of my friends who only traded BTC.


✅ My currency management mechanism:

  • If the 5-day volatility is less than 3%, it will be directly eliminated (no volatility = no opportunity);

  • Coins whose market capitalization rankings have fallen by more than 10 places will be permanently removed from the watchlist (eliminated by the market);

  • The target pool is updated monthly, leaving only 15% of the core currency (energy is limited, so we must use it where it counts).


In 2024, I eliminated 87% of underperforming cryptocurrencies and focused solely on a few core assets: BTC, ETH, and SOL. This actually increased my account returns by 70%. The cryptocurrency world isn't short of opportunities; what's lacking is focus—ten mediocre opportunities are worth one reliable asset.

6. Let your principal outpace time and grow through compound interest — slow is fast

You can't get rich overnight. Relying on margin calls to turn things around will only get you deeper into trouble. A true comeback begins with financial discipline.


In 2016, I had only 50,000 yuan left in my capital. I set a rule for myself: I would not invest more than 10,000 yuan per trade (a 20% position), and I would withdraw my investment if I made a 10% profit. This small amount of money snowballed into 500,000 yuan three years later.
✅ My compound interest rules:

  • Each investment should not exceed 20% of the total principal (even if the stock is bullish, do not invest all of it);

  • If a single profit reaches 10%, the cost will be withdrawn (the principal is always safe);

  • Set a 3% trailing take-profit on the remaining profit (let profits run, but don’t be greedy).


Let's put it in math: a 15% average monthly return, compounded over three years, is 100x. It sounds slow, but it's more reliable than the roller coaster of "earning 10x and losing 5x"—only by surviving the cryptocurrency world long enough can you wait for the big opportunities.

Epilogue: It’s not the smartest people who survive, it’s the most disciplined people who don’t die.

Over the past decade, I've witnessed countless technical experts and short-term geniuses perish in the market. Those who truly survive are the "honest people" who follow simple rules, constantly review their trades, and respect the market.


I still have three habits:

  • Check on-chain data and fund flows every morning (to know where the money is going);

  • Review trading mistakes three times a week (to avoid falling into the same pit);

  • Backtest the strategy logic once a month (the market changes, so the method must also change).


If you are struggling, remember:

  1. Print out your worst losing trades and compare them to this article one by one – 80% of your losses can be traced back to them.

  2. From the next transaction onwards, limit the single loss to no more than 3% of the principal - survival is more important than anything else;

  3. Don't enter the market with a full position. Set aside 6 months of living expenses first - only when you have no worries can you make the right decisions.


The end of the cryptocurrency world isn't about getting rich quick, but about sobriety. Don't chase the "next doubling candlestick." Think about this: Can I live another ten years?
If you can live for ten years, you have won over 99% of people.