After so many years of trading cryptocurrencies, I have seen too many people stumble and fall in the crypto world. Some turn around after a year, while others remain stuck in the same place for years. The difference is not luck, but whether they have found an effective methodology.

I have been in the crypto space for seven years, during which I have made money, lost money, and even had positions爆仓 (liquidated). In the end, I accumulated profits of over 50 million. Looking back, those blood and tears lessons all point to some underlying principles. Today, I will share ten core rules summarized over these years, as a reference for those still exploring.

**Don't Be Greedy with Small Capital**. If you only have 100,000 yuan in capital, full position trading is doomed to fail. Instead of chasing hot topics and trading frequently, be patient and wait for a major market move. Catching one main upward wave in a year makes doubling your capital no problem. During this period, patience is your biggest asset.

**Demo Trading is a True Gold Mine**. Many people go straight into real trading, and one big loss can wipe out their chances of recovery. While demo trading doesn't have real psychological pressure, it allows you to try mistakes endlessly, refine your mindset and execution, and truly understand your risk tolerance.

**Beware of Reversals After Major Good News**. This is a classic market rule—big positive news landing often becomes an opportunity to sell off. If the good news doesn't lead to a rally on the same day, a high open the next day should be approached with caution, as you can easily get caught. Many people have suffered losses here.

**Act Before Holidays**. Markets tend to decline in anticipation before holidays, and historical data repeatedly proves this. The smart move is to reduce or even completely exit positions in advance, then re-enter after the risk has been released. This is not empty talk; it’s a hard-earned lesson.

**Cash Flow is the Core of Mid-Long Term Investing**. Don't expect to eat everything in one wave—that's a game for big players. The correct approach is to buy low and sell high, rolling positions, and always maintain sufficient cash reserves. Only then can you have the firepower when opportunities arise.

**Only Trade Active Coins for Short-Term**. Avoid coins with dead trading volume; they waste your time and test your patience. Focus on those with obvious volatility and high participation, so your efficiency improves.

**The Downtrend Rhythm is Critical**. During slow, gradual declines, rebounds can be very painful, but if the decline accelerates, rebounds often come quickly. Master this rhythm, and your success rate in trading will significantly improve.

**Cut Losses Immediately to Survive**. If you buy wrong, admit it immediately—don't expect miracles. As long as your capital remains, opportunities are still there. This is the fundamental rule for survival in the crypto space.

**Use Charts and Indicators for Short-Term Trading**. Pay attention to 15-minute candlestick charts combined with KDJ; you can find many good buy and sell points. This greatly helps short-term operations.

**You Don't Need to Master All Techniques; Master One or Two**. There are countless trading methods in the crypto world, and you don't need to be proficient in all. Find one or two that suit you best, practice to perfection—this is often more effective than knowing everything but being mediocre at everything.

All these ten rules are proven with real money. They may seem simple, but they can help you avoid most pitfalls in the crypto world. Execute them well, and your journey in the crypto space will be much steadier.