7 Years in the Cryptocurrency Market: From Heavy Losses to a Survival Strategy With 6 Iron Rules

The cryptocurrency market is not a place for gamblers. Over the years, many investors have witnessed their accounts drop from several hundred thousand USD to just a fraction of that amount. These losses are not due to bad luck, but often stem from a lack of discipline, poor risk management, and hasty decisions.

👉 Below are 6 survival rules in crypto trading, drawn from the experience of veteran investors, to help limit risks and increase the potential for stable profits:

1. The “5 Capital Buckets” Rule: Diversify Risk The basic principle is to never put all your eggs in one basket. Your total capital should be divided into 5 equal parts, and only one part should be used for trading at a time. The maximum loss per trade should be limited to 10%. Even if you lose 5 times in a row, the total loss is only about 10%, protecting your capital and your mindset.

2. Follow the Trend: Don’t Fight the Market The market rarely favors those who go against the trend. Corrections during a downtrend are often “bull traps” for buyers. Only enter trades when the main trend is clearly established, taking advantage of pullbacks in an uptrend to enter, and exiting immediately if the trend breaks.

3. Avoid Projects with Short-Term Surges Projects that skyrocket in a few days or weeks are often liquidity traps. Most of the profits have already gone to large investors, leaving the rest at risk of “holding the bag.” Chasing 100x or 1000% gains in a short time usually leads to significant losses.

4. Use Basic MACD: Simple Indicator for Beginners Complex indicators aren’t always necessary. With MACD, basic signals such as DIF and DEA crossing above 0, combined with the price breaking above the short-term moving average, can be buying signals. Conversely, a cross above 0 combined with a price breaking support can be a sell signal. This simple rule helps avoid many unnecessary risks.

5. Increase on Gains, Stop on Losses: Control Emotions Adding more capital to a losing position only increases your losses. On the other hand, when in profit, if the trend remains strong and trading volume increases, you can slightly increase your position to ride the momentum. It’s crucial to distinguish real opportunities from hype cycles to avoid unnecessary risks.

6. Plan and Review Regularly Instead of constantly watching the market, it’s much more effective to spend time reviewing and summarizing weekly. Reviewing right and wrong decisions, evaluating signals, and managing positions help build a disciplined trading system, which is key to maintaining long-term profits.

👉 In summary, the cryptocurrency market is a place where “perception turns into profit.” You can’t make money beyond your understanding and risk management capabilities. Discipline, capital management, and following the trend are the survival foundations, helping investors survive and thrive sustainably in this volatile environment.