In the world of cryptocurrency for five years, from 20,000 to 3,000,000: The 6 life-saving rules I learned through losses
After five years of navigating the cryptocurrency world, I consider myself a veteran.
At 30 years old, I am from Zhejiang and currently live in Hangzhou. When I first entered the market, I started with a capital of 20,000, chasing the market up and down, and ended up with only 8,000 left. After 1,500 days of reviewing and self-improvement, my account finally broke 3,000,000.
The pitfalls I encountered over the years resulted in 6 life-saving rules, each one learned through hard-earned lessons.
1. Don’t chase high prices during a sharp rise, and don’t cut losses during a sharp drop.
In the early days, I would rush in when I saw a cryptocurrency making a sharp rise, and I got trapped twice, losing 12,000.
Later, when I encountered a sharp drop, I followed my discipline and waited for stability before adding more, which allowed me to recover my previous losses.
Remember: The market makers thrive on emotions; maintaining composure will prevent you from being harvested.
2. Hold if the support level holds, leave immediately if it breaks.
Last year, when a major cryptocurrency pulled back to a key support level, I decisively increased my position, and it resulted in a 50% gain.
When another smaller cryptocurrency broke its support, I immediately cut my losses and avoided a 60% drop.
The support level is the bottom line; don’t go against the trend.
3. Don’t enter during low volume rebounds, be cautious of high volume drops.
Once, I saw a low volume rebound and tried to catch the bottom, only to be trapped for two weeks.
Later, I learned to reduce my position when I encountered high volume drops, which helped me avoid major pitfalls multiple times.
Volume reflects the attitude of funds; avoid trading in markets without signals.
4. Set a profit target of over 20%, and leave if there’s a 10% retracement.
I once had a paper profit of +30%, hoping to double it, but ended up taking only 5%.
Later, I set profit targets and have never been trapped by “greed” again.
Taking profits is the true way to secure gains.
5. Only trade familiar cryptocurrencies, avoid new trends.
In the early days, I followed the trend to speculate on new coins and played with high-leverage contracts, losing two months' profit in just one week.
Now, I focus only on three familiar cryptocurrencies, trading no more than twice a month.
Not familiar? Don't trade; that's the shortcut to stability.
6. Mindset is more important than technique, if panicked, stop.
In the first two years, I panicked and cut losses, missing several major market opportunities.
Later, whenever I felt panic, I chose to stop.
With a steady mindset, my trading wouldn’t go awry.
Conclusion
The quick money in the cryptocurrency world seems tempting, but it’s actually a trap.
First, learn to **“survive”**, so you can last longer and earn more.
Don’t wait until your capital is gone to understand these rules.