Eight years of navigating the crypto world and accumulating 50 million yuan—this is not bragging; every penny was earned through pitfalls and lessons. Today, I’ll share what I’ve learned over the years. Use what works, and treat what doesn’t as a cautionary tale.

First, let's talk about principal. When you don’t have much money, don’t go all-in. I’ve done that before—almost wanting to go all-in at once, rushing in with a full position to double quickly, only to get trapped and have no chance to exit. Later, I realized that as long as you catch one or two main upward waves each year, that’s enough. The biggest test in this market isn’t your courage, but your ability to stay calm and wait. The secret to ordinary people winning is simply knowing how to wait.

Cognition is key. Never try to earn money beyond your understanding. My approach was to spend half a year practicing on a demo account, repeatedly testing and correcting mistakes, with almost zero cost. By the time I put real money in, I already had a clear idea. If you only start testing with real money now, one mistake could mean immediate elimination, with no second chances.

Regarding positive news, beware of many pitfalls. Often, good news is followed by a big drop, turning into a negative. Here’s an experience: if there’s no reaction on the day of the good news, but the next day opens higher, you should decisively withdraw—don’t be greedy. Reducing your position before holidays is a strict rule. History has repeatedly proven that no matter how optimistic you are before a holiday, you must cut back.

In terms of trading strategies, long-term and short-term approaches require two different mindsets. Don’t expect to eat the whole fish in the medium term; leave enough cash to add positions at lows and sell at highs. This way, you won’t be shaken out by market noise. Short-term trading is simpler—focus on hot coins with high volatility and popularity. Niche coins are just wasting time and opportunity costs.

Downward trends also follow certain patterns. A slow decline is the most exhausting, as it tests your patience. But sharp drops are easier to handle—if you buy aggressively, rebounds can be quick. As long as you find the right rhythm, there are plenty of opportunities.

The most important rule: cut losses when wrong. This isn’t about giving up; it’s about survival. Protecting your principal allows you to stay in the game longer. Once the capital is gone, even the best skills are useless. Don’t overcomplicate technical indicators—master one or two. For example, in short-term trading, I use 15-minute K-line charts with KDJ indicator; that’s enough to find buy and sell points without more complex tools.

Ultimately, avoiding pitfalls in this market is equivalent to making money. Those who survive and continue to profit are often not the ones betting the most aggressively, but those who understand how to test waters and know when to stop.

Are you ready to accept the challenge in this market?