Surviving in Crypto: Rules to Help Investors Limit Losses and Increase Win Rate

In the cryptocurrency market, most investors fail not because of a lack of opportunities, but because they turn trading into “gambling.” Behaviors such as buying at the top, taking profits too early, cutting losses too late, or going all-in based on emotions prevent them from surviving even a single market cycle.

The reality is: to make money, you first have to learn how not to lose money. Risk management is many times more important than searching for “big win” trades.

1. Capital Management Method: The Foundation of Every Strategy

• Divide capital to “safely test and fail” All capital should be divided into 5 equal parts. Each time you enter a trade, use only 1 part to test the trend. Even if the trend seems like a “sure win,” never go all-in. • Cut losses with discipline: Don’t let one trade destroy your entire account Each trade should allow for a maximum loss of 10%. This means the total actual risk is only 2% of your total assets. Even if you’re wrong 5 times in a row, your account will remain almost intact, not wiped out. • Take profits following the trend, not your emotions You don’t need a fixed take profit target, but you should only take profit when gains exceed 10% to avoid the market “reversing” and wiping out your results. Common mistakes: Taking profit at 3% → strangling your profit margin Holding onto losses of 15–20% out of hope → turning small losses into big losses Trading like this is no different from “handing your money to the market.”

2. Increase Win Rate by Trading with the Trend

90% of newcomers lose money because they love “catching the bottom” in a downtrend. The bounces during a downtrend look enticing but are mostly bull traps to attract new money as liquidity for sellers.

Correct principle: Low-buy, not Bottom-buy “Catching the bottom” is like fumbling in the dark, dependent on luck. “Low-buy” is waiting for the trend to be confirmed, then buying on a pullback—much safer and more effective. Uptrend: buy on retracements Downtrend: stay out It’s like climbing a mountain: take a break to regain strength, then keep climbing—uptrends work the same way.

3. Stay Away from Assets That Have Just Surged Strongly

Assets that spike multiple times in a short period are often being pumped for distribution.

Typical signs: Sharp price increases but with unusual trading volume A few strong green candles followed by sideways price action Media outlets pushing a lot of good news at once At this point, new buyers often become “bag holders” for institutions. Very few escape this pattern with a profit.

4. Three Simple but Highly Effective Technical Tools

You don’t need 10–20 confusing indicators. Just these 3 tools are enough to spot the flow of money:

• MACD MACD crosses up (Golden Cross) and breaks above the 0 line → real money is flowing in. MACD crosses down above the 0 line → trend is about to weaken, reduce your position.

• Trading Volume (Volume) Low → high + price breaks resistance → big money is really buying. Volume surges but price stays flat → distribution, time to exit the market.

• Moving Average System (MA) Focus on 4 MAs: MA3 – short-term signal MA30 – medium-term trend MA84 – find entry points for upswings MA120 – identify long-term trends Only trade coins with all 4 MAs trending up. If the trend is bad, eliminate immediately—no hesitation.

5. Two “Survival” Rules to Avoid 80% of Market Accidents

• Absolutely never average down Averaging down is the fastest way to blow up your account. A downtrend is not an opportunity—it’s a warning. If you’re wrong, cut your losses, don’t hold on.

• Always record and review every trade Check your reasoning for entry Compare with actual trend Record what you did right/wrong Repeatedly doing this will naturally and steadily increase your win rate.

Conclusion

In the crypto market, there is no legend of “overnight x300.” The longest survivors share 3 common traits: Strict risk management Trend-following trading Emotional control and discipline

These rules are not some advanced secrets, but are distilled from countless failures of hundreds of investors. Those who apply them will save tens—even hundreds—of millions in “tuition fees” to the market.