Back in 2017, I jumped in with 7,000 yuan. I experienced liquidation, online loans, and debts—went through the full cycle. At the worst, I was left with only $1,000 in loans, but with that capital, I managed to grow my assets into eight figures. Over the years, I’ve stepped on countless pitfalls and summarized a set of principles. Today, I’ll condense the three most core points that can save you years of detours.

**1. The Underlying Logic of Making Money**

The first trick is to look at the big cycle to set the direction. Keep an eye on the 4-hour and daily charts. The market has three situations: continuous bullish candles breaking previous highs—signal of a bull market; consecutive bearish candles breaking the lows—market manipulation or shakeout; sideways movement—sit back and watch without action. The principle is simple—buy when rising, short when falling, and do nothing during sideways oscillations.

The second trick is to identify support and resistance levels. Price acts like a spring—bouncing up at support levels and pulling back at resistance levels. How to find these levels? Three methods: draw horizontal lines at previous highs and lows, use Fibonacci retracement levels, or identify areas with the densest liquidation volume.

The third trick is to switch to smaller timeframes to find precise entry and exit points. When the daily chart shows an uptrend, switch to the 15-minute chart to look for specific entry signals. A bullish MACD crossover with increased volume, or a breakout of a downtrend line, or a long lower shadow with volume doubling—if two of these signals appear, you can decisively open a position.

**2. Eight Key Points for Survival**

When choosing coins, only trade BTC and ETH; altcoins are basically gambling. Keep single trade positions within 5% of your total funds. Set stop-loss just 3% below support levels—if triggered, cut losses immediately. For take-profit, set a 3:1 reward-to-risk ratio—meaning when you make 3,000 yuan, your stop-loss should be 1,000 yuan.

Avoid trading during the 3 to 5 a.m. window. Prepare two contingency plans before each trade. Spend time daily reviewing your trades and note down three lessons. Most importantly, stick to discipline—after a series of losses, force yourself to close the software for 2 hours to cool down.

**3. Three Iron Rules for Survival**

Never chase the market or panic sell. When BTC surges 10%, instead of celebrating, start reducing your position. The importance of good entry points surpasses everything—better to miss ten opportunities than to open a position at the wrong place once.

Mindset is the hardest to cultivate. When making consistent profits, withdraw half. After a liquidation, delete your trading app for three days to give yourself a buffer. Remind yourself every day: only by staying alive can you produce results.

Do you understand now? The crypto world isn’t about getting rich overnight; it’s a trading system built on blood, sweat, and tears. Remember this: 1,000 yuan isn’t scary; what’s scary is operating with the wrong method 1,000 times.