Making money in the crypto world is difficult; the hardest part isn't just predicting the market, but managing yourself. Over the years, I've summarized that these two things are the most critical.

**Mindset is the first line of defense**

I've seen too many people celebrate wildly on social media during a bull run, only to cut their losses and sell in panic when prices drop, ultimately becoming victims of the market. Frankly, the biggest trap in crypto isn't the market itself, but an unsettled heart.

What should you do when FOMO (Fear of Missing Out) hits? My straightforward approach is—force yourself to stay calm. Last year, a Meme coin tripled in one day, and the group exploded with excitement. I simply turned off my phone and went for a walk. When I returned, I saw it had already been cut in half. Whenever I feel impulsive to chase a high, I ask myself: "Missing this trade, will I really die?" Most of the time, the answer is "no," so I stay put and don’t move.

When panic strikes, I do the opposite—turn off all social media noise and check the Fear & Greed Index. If the index drops below 20, that’s often a good time to pick up some bargains. Then I look at on-chain data; if big whales haven't sold, why panic?

A simple but effective trick is to stick a note on your desk: "Sell a little when it rises, buy a little when it falls." It sounds like old advice, but contrarian actions like this are precisely the secret to earning from emotional swings.

**Position management is the key to survival**

Going all-in with full position? That’s not investing; that’s gambling. The reason I haven't blown up my account in ten years is based on one core logic: position size is like the accelerator—never use it as a brake.

Build your position gradually, like stacking blocks steadily. When you like a coin, try buying 10% first to test the waters. If it drops 10%, add another 20%. If it drops further, add more (this is the pyramid averaging method). What's the benefit? It spreads out your cost basis and keeps your mindset stable.

When Bitcoin dropped from 60,000 to 50,000, smart investors didn't go all-in at once but bought in three batches, averaging down to around 55,000. When the price rebounds slightly, your account is already in profit.

Another painful lesson I learned is: always keep some money for survival. During the 2018 bear market, I made the mistake of using my house down payment to add to my position, and I was forced to sell at a loss. That loss... Now I only play with idle funds; even if I lose again, it won't affect my daily life, allowing me to make decisions calmly.

For those trading derivatives, remember this point even more. With a capital of 1000U, any small market movement can push you to liquidation. Such extreme operations are basically working for the exchange.