Crypto world 8 years: from 5000 yuan to 25 million, the survival rules I carved out with real money.

Eight years ago, when I first entered the crypto world, I only had 5,000 as capital and couldn't even tell the difference between BTC and unknown altcoins. I followed the hype of the soaring "meme coins" and ended up holding them until they became worthless; I also clung to the fantasy of a "rebound" during the LUNA crash, watching helplessly as my tens of thousands in capital shrank to just a small amount. It was only after falling enough that I gradually learned the temperament of this market, transforming from a retail investor chasing gains and cutting losses into a trader who could maintain composure.

Today we won't talk about motivational quotes; instead, I'll share the experiences I've gained over the years with real money. Whether you're a newbie just entering the crypto world or an experienced player looking to adjust your strategy, every piece of advice can be applied directly.

1. First, protect the principal: I have never broken my iron rule of capital management.

In the crypto world, being alive is the first opportunity to make money, and preserving the principal is the first step to surviving. After suffering heavy losses in the past, I set three strict rules for myself, which I have never broken to this day.

Only use money that "losing it won’t affect your life" to enter the market: If you have a deposit of 100,000, take out a maximum of 20,000 to operate; if your monthly salary is 8,000, invest no more than 800 each month. I have seen too many people bet all their assets, even borrowing online loans to trade coins, and in the end, their mentality collapses and they operate chaotically, losing more and more, and even their normal lives are dragged down.

Stop-loss is more important than profit: I have now set a "5% mandatory stop-loss line" for myself - if it falls below the 5-day moving average in the short term, I will exit, and if it breaks the 20-day moving average in the medium term, I will liquidate directly. The lesson learned from holding LUNA was too profound; turning 100,000 into 1,000 is more painful than when I first lost my principal. The feeling of helplessness watching money evaporate is enough to go through just once.

Always divide your position into three parts: 30% to buy mainstream coins like BTC and ETH for long-term holding as a base to resist risks; 50% for swing trading, using the 15-minute KDJ indicator to find entry and exit points; and the remaining 20% as reserve funds. In case of a sharp drop, don’t panic. Replenish your position in three batches at declines of -15%, -30%, and -50%, so you won't get trapped by a full position all at once.

2. Don't go against the market: Following the trend is the key to making money.

In my early years, I always thought about "buying the dip" and believed that a 50% drop in coin prices was the bottom, but I ended up buying at halfway up the hill every time. It was only later that I realized the market is always right, and following the trend is much more reliable than making blind judgments.

Don't touch it decisively when it drops: even if the coin price drops by 50%, don't rush to enter the market. "Bottom fishing" in a bear market may lead to even lower points; it's better to wait for a clear upward signal—such as three consecutive days of closing with bullish candles and increasing trading volume—before taking action.

Seize the opportunity during pullbacks when the price is rising: When the market is going up, pullbacks are the safe entry points. Buying low is more prudent than waiting for the "absolute bottom," and it can also reduce the risk of being trapped. For example, when BTC rose from 30,000 to 40,000, entering during the pullback to 35,000 was much safer than hesitating at 30,000 and chasing the price at 40,000.

Volume is the best signal: When the coin price breaks out at a low level, if the volume suddenly expands, it is highly likely to be a real opportunity; if it rises for half a day without volume, it is rather to be cautious of a "false rise," which may be the main force pulling up to offload, and it could drop at any time.

Three, there is no need for many technical indicators; understanding these few is enough.

In my early years, I tried more than a dozen indicators, and in the end, I only kept "three charts and one indicator". It's simple and practical, and even beginners can understand it.

15-minute candlestick chart for short-term buy and sell points: used to find specific entry opportunities, for example, when the candlestick turns from bearish to bullish, or when the 3-day moving average turns upward, one may consider entering the market; conversely, if the candlestick closes two consecutive bearish candles and breaks below the 3-day moving average, it's time to exit.

Daily MACD determines direction: When the DIF line and DEA line cross and break through the 0 axis below, it is a clear buy signal; if they cross downwards above the 0 axis, even if there is no loss, one should reduce their position. This indicator can help me avoid major directional errors, such as during the bear market in 2022, when the MACD remained below the 0 axis, allowing me to avoid significant losses by staying in cash.

Weekly Bollinger Bands Finding Support: Look at the position of the coin price within the Bollinger Bands. The middle band is an important support level. If it falls below the middle band, it indicates that the trend may change, and it is time to reduce positions; if it stabilizes above the middle band, it may be an opportunity to increase positions.

The most reliable resonance of the three: when the 15-minute chart shows a buy signal, MACD is above the 0 axis, and the Bollinger Bands are stable in the middle track, while the trading volume increases, this is the time to enter the market, and the success rate will be much higher. When I was trading SOL in a swing, I waited for these three signals to appear simultaneously, and after entering the market, I made a 20% profit in less than a week.

4. Three survival habits for short-term trading that have helped me avoid countless pitfalls.

Many people say that short-term trading does not make money, but in fact, they haven't found the right method. I have been doing short-term trading for many years and have summarized three habits that can both control risks and stabilize profits.

No subjective judgment, just look at "hot + volume": only select coins with high recent trading volume and increasing open interest, and avoid those with low volume even if they rise. For example, when trading TRB short-term, I focused on its trading volume; if the volume kept increasing, I would hold it. Once the volume drops, regardless of whether I made a profit or not, I exit without hesitation because I "feel it can still rise".

Stop-loss and take-profit are strict: sell immediately at a 15% profit, regardless of whether it can rise further; cut losses at a 5% drop, never hold the position. Previously, I made short trades on People and ran after making a 12% profit. Although it rose another 5% afterward, at least I didn’t get trapped; securing profits is real profit. If you are greedy and wait for a higher price, you might end up losing your principal.

Only look at 1-3 minute charts for short-term trading: Short-term trading doesn't require too many indicators, just focus on the average price line of the real-time chart—if the average price line is going up and the price line is above the average price line, go long; if the average price line is going down and the price line is below the average price line, go short; during sideways markets, simply do not enter the market to avoid wasting time and transaction fees.

5. The 4 tools I must check every day, relying on them to avoid pitfalls and monitor market trends.

Trading coins requires tools. I now open my computer every day and first check these 4, which saves me a lot of trouble compared to figuring things out on my own.

Market analysis using TradingView: It has the most comprehensive drawing tools, allowing you to quickly mark support and resistance levels, making it more intuitive than other software. For example, when I trade BTC in a range, I draw a trend line on TradingView; if it breaks down, I stop loss, and if it breaks out, I increase my position, without relying on gut feeling.

According to Jinshi Data: Real-time updates on macro policies, such as the Federal Reserve's interest rate hikes and news about Bitcoin ETFs, can affect coin price trends. For instance, when the Federal Reserve announced a slowdown in interest rate hikes, Jinshi Data pushed the information immediately, and I increased my BTC holdings in advance, which later indeed rose by 10%.

On-chain data check Glassnode: it can track the addresses of whales to see what they are buying and selling. Following big funds is much more reliable than guessing on your own. For example, I saw a whale increasing their ETH holdings, so I added a bit to my position, and later ETH rose from 1800 to 2200, making a nice profit.

Anti-fraud with TokenSniffer: When encountering unfamiliar altcoins, first check on it to see if it is a "shitcoin", and check whether its contract has vulnerabilities and if it is anonymously issued. I almost bought an unknown altcoin before, but after checking I found it was a "shitcoin", which allowed me to avoid the pit of going to zero.

Finally, I want to say something honest: there is no "holy grail" in the crypto world, nor are there any easy ways to make money without effort. My current stable profits are all the result of previous losses — discipline is more important than skill, and staying alive is more important than making money. If you just want to rely on a few thousand to make a comeback, it’s better to first focus on improving your understanding and not treat trading coins as a gambling game. After all, in this market, just surviving for a long time means you have already outperformed most people.