After years of navigating the crypto world, I’ve uncovered a harsh truth—the market is the best teacher, especially in curing all wishful thinking. Some people have made quick money relying on luck, but those who have truly survived until now treat trading as a craft that requires continuous refinement. Today, I want to share three core principles that have been validated with real money, for your reference.

**First, be patient during sideways consolidation, and act quickly during breakouts.** Range-bound markets are the easiest to get itchy about. I suffered heavy losses early on from frequent chasing of highs and selling lows, with transaction fees eating up more than my principal. My current approach is simple: if the price consolidates with decreasing volume for over a week, I resolutely stay put. Wait for the price to break out of the range. Last year, BTC hovered around $30,000 for half a month; when it broke the upper boundary, I decisively followed, and ultimately gained over 30%. The key is: don’t trade in markets you don’t understand. Missing out is better than losing money.

**Second, hot coins should be bought and sold quickly—don’t get emotionally attached.** Popular coins, especially Meme coins, are essentially a game of capital betting. Their hype comes suddenly and fades just as fast. My rule is: if a coin rises for three consecutive days, start reducing your position; if on the fourth day it doesn’t hit a new high, close it all. For example, a certain popular animal-themed coin in 2024 was like this. I sold half my holdings on day three, set a trailing stop for the rest, and successfully avoided the subsequent sharp decline. The idea of “maybe it will go higher” must be firmly suppressed—crypto markets never last forever, only the profit cycles matter.

**Finally, don’t panic during a gap-up surge; the key is to hold the 5-day moving average.** When prices gap up with a bullish candle and increased volume, it’s usually a sign of acceleration. As long as the 5-day moving average isn’t broken, hold your position tightly and don’t let go. During the 2023 AI sector explosion, some coins gapped up repeatedly. I relied on the strategy of holding the 5-day MA, and ultimately caught the entire main upward wave.