Having navigated the crypto market for these years, I’ve seen too many people fold in their contracts. Some double their principal only to lose it all back, others go all-in and get liquidated instantly. Compared to them, those who survive longer and earn steadily rely not on predicting every market move, but on execution.

Starting with just 5,000 yuan, I’ve stepped on countless pitfalls and summarized 9 practical iron rules. Sharing them with you, hoping your journey in the crypto world can avoid some detours.

**The Bottom Line of Capital Allocation**

If your principal is only 10,000-50,000 yuan, don’t try to make money every day. Instead of frequent trading, focus all your energy on waiting for a major market move. Catching one main upward wave can sustain you for months. Frequent trading only accelerates the depletion of your capital.

**The Trap of Hot Search Favorable Coins**

When a coin with sudden positive news hits the hot search, if you don’t exit that day, you must reduce your position when it opens high the next day. Here’s a hard rule: 99% of positive news signals a stage top. Don’t expect a “second wave” of the rally; the big players’ chips have already been distributed at high levels.

**Timing Window Considerations**

When facing major policies, international situation changes, or the night before holidays, my strategy is to watch more and act less. Better to miss an opportunity than to force yourself into a scapegoat. Only when the trend is fully clear should you take action; that’s when the risk is minimized.

**Differences Between Mid-term and Short-term Positions**

For mid-to-long-term trading, always start with a light position to test the waters. Keep your position within 30%, leaving enough firepower to handle sudden situations. Going all-in feels good temporarily, but liquidation is a fiery end—this is not a joke in the crypto world, but a bloody lesson.

Short-term trading is different. Be like a sniper—aim precisely and shoot, never fight battles you can’t win. Once signals turn bad, retreat immediately. At this stage, execution is more important than technical analysis.

**Following the Trend vs Fighting the Market**

Markets have their own temper. Sometimes they grind you down to doubt life; other times they take off instantly. Don’t fight it, really. Follow the trend: eat when it’s time to eat, dodge when it’s time to dodge.

**The Necessity of Stop-Loss**

Once the direction is confirmed wrong, cut your losses immediately. Even if it’s just a small loss, get out. Preserving your capital is the prerequisite for a comeback. Those who don’t stop-loss are essentially giving their money willingly to the big players.

**Technical Analysis as a Reference**

For short-term monitoring, focus on 5-minute and 15-minute candlestick charts. Combine MACD and volume to find entry points—efficient and with stable win rates. No need for complicated tools; mastering these few is enough.

**Mindset Management Is the Ultimate Test**

The final and most crucial point: control your hands, steady your mind. In crypto, one day is like a year in real life. Once your emotions spiral out of control, liquidation is near. This isn’t just motivational talk; it’s lessons learned from countless accounts running dry.

Contract trading is fundamentally risk management combined with psychological warfare. Master these principles; you may not make huge money, but at least you can survive longer and stay rational in this market.