In the past few years in the crypto world, I’ve gone through the entire process from losing money to turning things around. It wasn’t thanks to some genius technical analysis, nor did I rely on luck to jump on trending coins, but rather a set of methods that seem incredibly simple—yet it’s this very approach that pulled me out of sleepless nights and anxiety.

Looking back now, I realize that for someone to survive long enough in the crypto space and earn stable returns, it’s never about being smart, but about self-discipline.

**Level One: Preserving Capital Is the Top Priority**

Any flashy trading strategy is useless if you can’t withstand a single liquidation. I’ve seen too many experts turn their fortunes around with just one good re-entry. So from the start, I set a few strict rules for myself:

Divide 100,000 yuan into 10 parts, and only use 10,000 each time to try a trade. Never risk more than 20% of your total position; treat the rest as nonexistent. When a single loss hits 2%, no matter how reluctant you feel, exit immediately. This rule may seem "cowardly," but it’s actually the most lifesaving.

Regarding leverage, my advice is straightforward: beginners should not use leverage at all; experienced traders should keep it below 10%. Just this one rule can help you avoid 90% of liquidation traps in the market.

**Level Two: Trading Is About Doing the Right Thing, Not Doing More**

Many people obsess over K-line charts, trying to make a dozen trades a day. I later realized that this approach is basically paying transaction fees to the exchange. The real way to make money is simple—pick a direction and stick to a single side. Either only go long or only go short; don’t flip-flop.

Set your stop-loss and take-profit levels in advance. My habit is 3% stop-loss and 5% take-profit. It may sound less exciting, but compared to those who change their mind on the fly based on feelings, this doubles your success rate. Just execute mechanically—don’t overthink it.

Another key point—control the number of trades. The first 1 or 2 trades of the day are usually the highest quality. If you make more than 3 trades, you’re probably losing your mind. Transaction fees also eat into your profits one by one.

**Level Three: Rookie Pitfalls Are All Here**

The pitfalls I’ve fallen into now serve as warnings for newcomers:

Don’t think about adding to your position against the trend. Every time you have that thought, you’re one step closer to liquidation. Also, avoid unnecessary trading—frequently entering and exiting will eat up half of your profits in fees. The most painful part is—don’t consider your gains as real profit until they are in your pocket. Many people get wiped out because they keep thinking "it can still go up," only to see a sudden correction wipe everything out.

**Compare Two Real Cases**

Same 100,000 yuan, but the outcomes are worlds apart:

The wrong approach is this—full position with high leverage, then when the price drops sharply, start adding to your position to lower the average cost, wait for a rebound, and finally get liquidated during a sudden crash. The account hits zero, and the person collapses.

My approach was different—use 20,000 yuan as a base position, set a 3% stop-loss and a 5% take-profit. Only two trades per week, each carefully thought out. The result: a steady monthly return of about 8%, and with compound interest, an annualized return over 150%. It may not sound like overnight riches, but it’s a sustainable way for me to keep making money.

**Final Summary in Six Rules**

What to do: Use spare funds, stay disciplined, stick to one side.

What to avoid: Going all-in, holding through losses, trying to do both long and short at the same time.

And one last reminder—futures trading is not a casino. Those who gamble with their living expenses usually end up dead in the water. Preserve your capital, survive long enough, and only then will you have the qualification to talk about making real big money in the crypto space.