Three years ago, I entered the crypto world with 20,000 yuan of New Year’s money, and in less than half a year, I was left with almost nothing. Three years later, the same principal allowed me to achieve financial freedom. This is not a rags-to-riches story; frankly, it’s a lesson built on blood, tears, and experience.

Spring 2023 was the hardest time. Looking at the remaining 3,800 yuan in my account, I felt cold and questioned my life. The friends who started with me had long since left, but I didn’t give up. Instead, I realized a truth — the problem isn’t the market, it’s myself.

Since then, I set a few rules for myself. These rules are very straightforward, but they are all lessons learned through blood and sacrifice.

**First, Diversification is a Lifesaver**

Divide the principal into five parts, only move one part at a time. If a single position drops more than 10%, cut it, even if it rebounds afterward—I won’t regret it. This discipline helped me survive the 2024 MEME coin massacre. I liked a coin that dropped 30% in two days, and I cut losses according to the rules. A week later, it ultimately fell 70%. In the crypto world, just staying alive is a win.

Another detail: when profits reach 10%, withdraw all the principal and let only the profits stay in the market. This way, even if your judgment is wrong later, you’re playing with market money, and your mindset is completely different.

**Second, Follow the Trend, Not Feelings**

I used to be a fanatic bottom-fisher, always buying in halfway up the mountain. Later, I realized: buying during a dip isn’t bottom-fishing; that’s courting death. The real opportunity to get in is during a pullback after an upward move.

Trend judgment is actually very simple: if the daily chart stays above the 20-day moving average, consider going long; otherwise, stay on the sidelines. Many people think it’s too simple, but the simplest discipline is the hardest to stick to.