Eight years in the crypto world, from the basement to Lujiazui: 4 lessons from 20 million yuan

In the winter of 2017, I was living in a 6-square-meter basement outside the Fifth Ring Road in Beijing, with no heating, relying solely on an electric quilt. My bank card only had 126 yuan left. During the day, I served tables to save money; at night, I watched K-line charts.

Eight years later, I am in Lujiazui, watching my account grow to over 22 million yuan. It’s not luck that got me here, but four painful lessons.

1. Rapid rises and falls always lead to selling off
During the 2017 bull market, a shanzhai coin surged 320% in ten days. I went all-in with 80,000 yuan.
As a result, it plummeted 18% on the third day, losing 60,000 yuan in a week.
Later, I understood: a rapid increase of over 30%, followed by 3-5 days of sideways movement, then a volume-driven 15% drop signals the market maker is pulling out.
This pattern repeats itself, each time ending in a sell-off.

2. Sideways trading at high levels is not an opportunity, but a trap
In 2019, I held mainstream coins sideways for two months, adding leverage to top up my positions, only to be cut in half.
If sideways trading exceeds 20 days, turnover is below 2%, and the price deviates more than 20% from the 20-day moving average, it’s a sign of distribution.
Now, whenever I see this pattern trigger in the system, I immediately reduce my holdings.

3. Bottom signals are about volume, not price
During the crash on March 12, 2020, I bought the dip in LINK, only to get caught.
Later, I realized: the true bottom is characterized by “shrinking volume consolidation + three consecutive days of gentle volume increase with small bullish candles.”
Last year, when BTC hit 25,000 and showed this pattern, I went all-in, sold at 42,000, earning 5.8 million yuan in a single trade.

4. Trading volume reveals the truth; position size determines life or death
Only those who survive long enough can win.
I only operate with half my capital and avoid leverage.
Last year, I entered PEPE only after a fivefold increase in volume, and I took profits immediately when the trend broke.
I earned 12 times my investment and avoided a crash.

In the crypto world, it’s not about who is the smartest, but who can survive.
Markets change, but human nature remains the same.
Sticking to your bottom line is the key to long-term success.