**Rules trump predictions; discipline determines profits**

After years of navigating the crypto market, I’ve seen too many stories of overnight riches and witnessed too many cases where money turns to dust. Honestly, making money in this market doesn’t require any advanced theories or insider information. The method I want to share is so simple that you might doubt it, but it’s truly the best way to protect your principal and achieve steady gains.

My deepest realization is: executing rules is more critical than predicting the market.

**Three pitfalls, just avoiding one is enough**

I’ve fallen into all of them when I first started, and each was paid for with real money.

**First pitfall: Can't control your hands, chasing highs and selling lows**

You’ve probably experienced this: a certain coin rises for several days in a row, and you get so eager not to miss the doubling opportunity that you buy at the top. Then the price starts to pull back, and you comfort yourself with “just a normal correction.” When the decline becomes painful, you panic and sell. This perfectly illustrates “buying at the high and selling at the low.”

This is the real reason why 90% of people lose money. Market sentiment is the most unreliable. My advice is to do the opposite: when the entire app shows red with decline signals, and opening the exchange feels exhausting, that’s actually a good chance to buy low. When others chase highs, I stay calm; when others panic, I take action. It sounds cliché, but it’s truly valuable.

**Second pitfall: Betting all your chips on one coin**

I’ve seen people put all their savings or even loans into a single coin. That’s not investing; that’s gambling. Crypto assets are highly volatile, and even the most solid projects can’t withstand black swan events.

My approach is: always keep 30% cash in your account. The remaining 70% is allocated across different coins, diversified by risk level. Cash isn’t idle; it’s your life-saving reserve and a weapon for bottom-fishing.

**Third pitfall: Greed without limits**

Making some profit and wanting more, refusing to take profits at the right time, results in reversing gains and losing half. Or constantly holding heavy positions chasing after a coin that might skyrocket tenfold. There’s an old market saying: “Greed is the most expensive tuition.”

**What is the truly effective approach?**

It boils down to three things:

First, set clear entry and exit rules, write them down, and stick to them. Don’t rely on feelings; rely on rules.

Second, determine your position size based on your risk tolerance. If a 50% drop in a coin keeps you awake at night, don’t buy too much.

Third, review regularly. Not to analyze why a coin dropped, but to check if you violated your rules. Most of the time, losing money isn’t due to misjudgment but due to operational discipline breaches.

**Final words**

The crypto market always exists, and opportunities are always there. But how many times opportunity appears is irrelevant if you don’t follow the rules. Most people who consistently profit aren’t the smartest; they’re the most disciplined. The market doesn’t care about your IQ; it cares about your execution.