In this round of the crypto market, I have also experienced quite a few ups and downs. From the initial losses and struggles, to starting to accumulate with $5000U, and finally making eight figures. Over the years, there are some things that are definitely worth summarizing.

**Cycle Anchoring is the Foundation**

The crypto market is crazy, but Bitcoin's halving cycle is a relatively reliable reference. My trading rhythm revolves around this: building positions 18 months before the halving, and gradually reducing positions within a year after the halving. Before the 2020 halving, I invested 60% of my funds into mainstream coins, holding through several major dips, and ultimately tripling my investment. One principle to remember — small coins follow Bitcoin’s lead, and Bitcoin follows the Federal Reserve’s lead.

**Position Management is the Bottom Line for Survival**

I’ve seen too many people go all-in, only to be wiped out by a black swan event. The method I developed is called the "Three-Three System": 30% as a long-term anchor, 30% for swing trading, and the remaining 30% as cash ready to deploy at any time. During the LUNA incident in 2022, many people got trapped, but that 30% of bullets allowed me to buy in when Ethereum dropped to $1000, and the subsequent rebound profits were enough to offset earlier losses. Another bottom line — no single coin position should exceed 20%, so even if a black swan hits, you won’t be wiped out.

**Signal Recognition is Critical**

Every day, I focus on three things: if RSI breaks above 70, consider reducing positions; if MACD forms a death cross, be alert; if the main capital flows out for three consecutive days, it’s time to withdraw. When Bitcoin was approaching $60,000 in 2021, all three signals flashed red simultaneously, and I immediately sold 80% of my holdings. The subsequent correction confirmed that this judgment was correct.

**Extreme Market Conditions Have Formulas**

Markets change rapidly, so you need a plan. I summarized an "Extreme Market Response Plan": if the decline exceeds 30%, wait at support levels, and buy in stages when a 15% rebound occurs; if the increase exceeds 50%, and a volume-drydown correction of 20% appears, cut some positions decisively. During the FTX crash last year, this formula helped me cut about 20% of my losses.

**Cognition Must Evolve with the Market**

The biggest trap in this industry is relying on last year’s experience to fight this year’s battles. I spend time weekly researching new projects, review my trades monthly, and adjust my investment framework annually. During the 2018 ICO wave, I lost heavily, and after that, I completely changed my approach — abandoning pure speculation logic, and focusing on coins with real application scenarios. The market changes, but people don’t — that’s how you dig your own pit.

Two last words of nonsense: leverage is a double-edged sword, only necessary in extreme market conditions; after making money, remember to withdraw the principal, and let the remaining profits snowball. Ultimately, survival is more important than anything else. Opportunities are there every year, but you must stay alive to seize the next wave.