Starting from 5,000 yuan to reaching an eight-figure asset, my crypto career has tasted both huge profits and dark moments of liquidation, losses, and insomnia. Today I want to say that instead of obsessing over how to double your money quickly, it’s better to understand how to survive longer — this is a realization I’ve gained through real money.

**Principal is the lifeline, diversification is the insurance**

I’ve seen too many beginners go all-in immediately, with waves of volatility wiping them out to zero. What’s the safest approach? Never fully commit; keep each single trade’s loss within 10% of the total funds.

My method is to split the principal into 5 parts, only trading one part at a time. The obvious benefit? Even if I lose five times in a row, I still have 50% of the capital left. As long as I catch one true trend, the profit can cover all previous losses. Stop-loss is like wearing a seatbelt in a car — it can save your life at critical moments. Once the direction is wrong, cut your losses immediately. Holding on stubbornly is the most money-burning habit.

**Trend is king; fighting the market is suicide**

The most common trap in crypto is "bottom fishing and top chasing." When you think the price is very low, it’s actually still in the mid-mountain. The correct approach is to buy on dips only in an uptrend.

The 4-hour candlestick chart can help determine the trend — higher highs and higher lows indicate a confirmed bull market. Enter after a pullback to support levels (like MA60). In a downtrend, those rebounds? They’re just opportunities to escape. Don’t be naive thinking you can precisely bottom fish. Many people lose everything in the illusion of “this time it’s different,” believing they can catch the bottom perfectly.

**Indicators are helpers, not gods**

Technical analysis doesn’t need fancy tricks. MACD combined with volume is enough.

A bullish crossover below zero that breaks upward indicates increasing bullish momentum — this is a good time to follow in; vice versa, a death cross below zero suggests reducing positions. What about volume? It’s a solid indicator to confirm breakouts — if price rises and volume increases, the move is genuine. If volume and price don’t match, it’s a false breakout — stay away.

Technical analysis is just a reference; market sentiment, policy changes, and fundamentals also require sharp eyes. Relying solely on indicators? That’s a recipe for failure.

**Psychological resilience is more important than trading skills**

The hardest part of going from 5,000 to eight figures isn’t learning analysis but managing greed and fear. When you make money, the urge to go all-in is strong, but that increases the risk of losses exponentially. Always follow your rules; don’t break principles even when tempting opportunities arise.

Losses are normal, not a failure. Surviving, continuing to trade, and waiting for the next real opportunity — that’s what makes a winner. No one can always win without losing; the goal is to make the number and size of wins greater than losses.