In 2018, the crypto world was still reveling in the afterglow of the last bull market. Like most newcomers, my mind was muddled by stories of overnight riches, and I stubbornly poured my entire ten years' savings of 1.2 million into it. The harsh reality hit quickly—over three years, my account shrank from 1.2 million to 230,000, nearly costing me my marriage and family relationships.

Those nights staying up until dawn staring at K-line charts, chain-smoking one cigarette after another, finally woke me up: this place isn't a casino; frankly, it's a test of your cognition and execution skills. Looking back now, seven years have passed, and not only have I recovered the losses, but I’ve also found a stable way to profit. Every rule was bought with real money.

**Lesson One: Hold the risk by the throat**

Going all-in and gambling everything taught me a lesson with a loss of 800,000. Since then, I divided my total funds into five parts, moving only one part at a time. If a single loss reaches 10%, I cut losses; even if I lose five times in a row, the total loss is only 10%, leaving room for a comeback. This is much smarter than being fully invested and getting wiped out all at once.

Beginners especially love to go all-in, thinking it’s a quick way to get rich. But the volatility in crypto isn’t gentle—one black swan can take you out. In 2022, LUNA collapsed outright, and FTX went bankrupt. Those who gambled everything on margin mostly couldn’t escape the liquidation.

**Lesson Two: Follow the trend, don’t try to go against it**

A rebound after a decline? Eight out of ten times, it’s just a trap. In my early years during a bear market, I aggressively bought the dip, only to deepen my losses with each additional purchase, ending up with almost nothing when I finally cut my losses. Later, I realized a simple truth: once a trend is established, don’t mess with it.