Is the crypto world really a slaughterhouse for retail investors? Not necessarily.

Some start with 5,000 yuan, and their accounts grow year by year to seven figures. The key is not gambling with emotions but using mathematics. The maximum drawdown is always kept within 8%—this is not luck, but logic.

In fact, exchanges are like probability machines. Profitable traders never rely on precise predictions; they understand the underlying patterns of volatility.

**Level 1: Stop-loss and take-profit are math problems**

Every trade must have a stop-loss and take-profit set. This is not optional; it’s a hard rule. When profits reach 10% of the principal, immediately withdraw half to a cold wallet, and leave the rest in the account to continue rolling. The benefits are obvious—compound gains during upward moves, and the principal won’t be wiped out during downturns. It’s like an airbag in a car, saving your life at critical moments.

**Level 2: Don’t bet on direction, just ride the volatility**

Use daily charts to identify the main trend, 4-hour charts to find reasonable oscillation ranges, and 15-minute charts to precisely time entries. The same coin can have two open positions simultaneously: one following the trend breakout, and another in the oscillation zone with a reverse order. No need to guess whether Bitcoin or Ethereum will rise or fall; just convert market volatility into your probability advantage.

**Level 3: Money management beats all technical indicators**

This is the easiest step to overlook but also the most decisive. Divide your account into ten parts, and only use one part for each position. If you lose two consecutive trades, stop immediately—no holding on, no adding positions. When your account doubles, withdraw 20%, regardless of the market’s future direction.

An interesting statistic: this method’s win rate is actually only 35%, but the risk-reward ratio is 5:1. The mathematical expectation is positive, which is the confidence to survive long-term.

**The core logic is simple**

Making money in crypto isn’t about always being right; it’s about surviving until the trend arrives. Most people lose money fundamentally because they fight probability with emotions.

If you also want to replace guessing with a system, start with money management and stop-loss settings.