Original by Crypto Fule, Mingyue Coin Pavilion.

I will never forget that night in 2019: watching my account drop from 500,000 to 30,000, with cold sweat all over my palms and just one thought in my mind - 'Can this money come back?' From blindly following the trend to steadily making profits, it took me two years to understand: to survive in the crypto world, you need to join the right circle and build your own trading system through continuous learning to ultimately achieve good financial results.

1. The collective celebration of retail investors is a signal to exit.

In May 2021, when the shout of 'Bitcoin breaks 100,000' echoed across social media, my childhood friend Li Ming put his wedding house down payment into a full position. This young man, who had suffered a 50% cut in his Dogecoin holdings due to a tweet from Musk, ultimately couldn’t escape the dual strangulation of the May 19 crash and the Luna collapse. Ironically, at that time, I was quietly cashing out with the institutions.

The market always rewards those who go against the trend. In November 2022, Bitcoin dropped below $15,000, and the panic caused most retail investors to firmly believe Bitcoin would drop to $8,000. However, we judged the market would stop falling based on policy, technical analysis, and news, and decisively notified to build positions gradually. Now, these chips have realized several times in value, once again confirming Wall Street's century-old creed: buy when no one cares, sell when there is a crowd.

2. Give up on 'getting rich overnight', first learn 'how not to lose'.

Newbies often ask 'Which coin can rise 100 times' but don't realize that many altcoins peak as soon as they launch, and in one day, the project team can run away with $30 million. TRUMP coin ran away with $20 billion in two days. Too many people enter hoping for 100x, 1000x, but in the end, they lose their principal and exit the market. When you stop thinking about 'betting big for a motorcycle', you can steadily outperform 90% of people. The most ironic truth in the crypto world is that those who want to make quick money often die the fastest. When you learn to go against the market, it will reward you unexpectedly.

3. Stay away from hot coins, altcoins, air coins, and shady exchanges.

I was once obsessed with technical analysis, only to later realize it was all a smokescreen. There was once a scam coin called 'FOMO Coin' with K-line charts prettier than Bitcoin's, but the code was copied, the team was fake, and it ran away within a week. Mainstream coins can drop but will eventually rise; shady exchanges run away, and scam coins, hot coins, and air coins will go to zero, leaving no trace.

Last year, a friend mysteriously told me: 'Hurry up and buy XXX coin, inside information says it’s going to pump!' I checked the project's official website and found that the team member photos were all AI-generated. A month later, that coin went to zero, and my friend lost 500,000.

4. Contract leverage is a slow-acting poison.

In 2021, my friend Lao Li played contracts and turned 300,000 into 3 million in 5 days. He posted on social media saying he wanted to quit his job and travel the world. But on the morning of the 6th day, Bitcoin experienced a sharp drop, and he was completely liquidated. Now, while he’s delivering food, he still uses that zeroed K-line chart as his phone wallpaper.

Lao Wang thought he was a master of contracts, only using 3x leverage, and when it dropped, he would add margin. He added margin 18 times, always saying, 'If it drops another 5%, I’ll stop.' In the end, his account went from 500,000 to 2 million, and he was wiped out when Luna collapsed.

This is the truest form of crypto contracts. You think you're profiting from price fluctuations, but in reality, you’re contributing to the exchange's fees. The exchange has a God’s-eye view, seeing everyone’s stop-loss lines, just like when playing cards with visible hands. You think setting a stop-loss makes you safe? The exchange can just unplug a wire and force you to liquidate.

While you’re sleeping, Wall Street tycoons are watching the market; while you’re eating, Korean aunties are dumping; while you’re in the bathroom, a tweet from Musk can trigger a tsunami. The gains are in numbers, but the losses are real money.

When the contract account shows a profit of 1 million, you hesitate to withdraw; when it shows a loss of 500,000, you fantasize about turning it around. In the end, you regret it only after being liquidated.

Always remember: in the contract market, the only ones truly making guaranteed profits are the exchanges that collect fees and those who guide you in contracts, profiting from your trading volume.

5. A good mindset is the key to profit.

Investing in the crypto world requires cultivating an 'anti-human nature mindset'; a 50% drop is just 'daily appetizers'.
In 2021, Bitcoin dropped from $69,000 to $15,000, taking over a year.

In 2022, Luna dropped from $119 to zero in just 3 days.

If you watch the market every day like you’re trading stocks, encountering the volatility in the crypto world may cause your heart to break before your account does. Only by adopting the mindset of 'viewing natural phenomena' can you avoid being strangled by market emotions.

Investing should be like Buffett, only investing in cryptocurrencies you understand. Do extensive research before buying; as long as there is value, even if it retraces 70%, there will eventually be a day of value recovery.

When you can calmly eat hotpot while watching your account drop 50%, and know that the pot's base was bought with profits from the last bull market, you’ve truly entered the game.

6. All-in is a big taboo, enter with a strategy.

Last year, my neighbor Xiao Wang used all his savings of 1 million to go all-in on a project claimed to be an 'Ethereum killer', and the result was that the project team ran away with the money, and the token went to zero directly.

Someone went all-in on Luna (LUNA), turning from a millionaire into a rights protection group leader in 3 days.

When fully invested, a 10% drop makes you anxious and sleepless, but when it doubles, you hesitate to take out your principal. The worst I’ve seen: someone mortgaged their house to go all-in, and when it dropped 50%, they were forced to cut losses, only to see it skyrocket 800% after cutting.

Always keep 50% cash to be able to enter and buy the dip when Bitcoin drops to $15,000.

The market won't rise directly to its peak; it will oscillate repeatedly to shake out weak hands. Gradually building your position is beneficial when a black swan event occurs, as you have ammunition to add to your position.

In the crypto world, entering with a strategy is like wearing a seatbelt while driving - it seems cumbersome during normal times, but can save your life in an emergency.

7. Curb greed, and exit with a strategy.

A friend cashed out to buy a house when a coin increased 30 times, but later the coin price increased another 10 times. However, he laughed and said: 'Better than those who didn’t cash out when it reached 30 times and ended up losing their down payment.' This is the ultimate wisdom of the crypto world – don’t try to eat the whole fish feast, just eat the belly of the fish, because that’s the fattiest meat.

My trading strategy is: (provided you can understand the market and know which stage the cryptocurrency is currently in)

1. Doubling out the principal: once you break even, everything in the exchange is profit, and the mindset is completely different.

2. Take half of the profit out during peak surges: Don’t be greedy.

3. During high volatility, clear out and convert your USDT to cash to put in your pocket: failing to clear out might result in losing a zero overnight.

Prevent chaotic operations due to unbearable loneliness, which ultimately leads to total loss. The U in the exchange is just a number; only when it is withdrawn to a wallet is it real wealth. Cashing out does not equate to exiting; experts thrive in a cycle of continuous profits.

In the field of digital currencies, those who can buy are apprentices, while those who can sell are masters. Remember: unrealized profits are merely chips temporarily held by the market makers. Be sure to learn how to convert profits into real wealth.

I am Fule, an investor who has been deeply involved in the crypto world for 6 years. Any questions about crypto are welcome.